FINANCING FOR DEVELOPMENT TOP 10 FAST FACTS FOR BEGINNERS

FINANCING FOR DEVELOPMENT: FACT NO. 10 In September 2015, 193 United Nations (UN) member countries approved the 17 Sustainable Development Goals (SDGs) (also known as 2030 Agenda, or Global Goals), to replace the Millennium Development Goals (MDGs) a 15-year agenda established in 2000.

FINANCING FOR DEVELOPMENT: FACT NO. 9  This December 2015, United Nations (UN) member countries are expected to agree on a climate change deal at the Paris Climate Conference (21 st Conference of Parties, or COP 21) to be held from 30 November to 11 December (

FINANCING FOR DEVELOPMENT: FACT NO. 8  The term “Billions to Trillions” refer to billions in Official Development Assistance (ODA), which are concessional loans and grants from OECD-DAC (.7% of GNI of member countries) to least developing countries (LDCs), to create and mobilize trillions of dollars in all possible sources of finance. ( pdf)

FINANCING FOR DEVELOPMENT: FACT NO. 7  Development finance comes from various domestic/international and private/public sources, e.g., ODA; Domestic Resource Mobilization (DRM); Foreign Direct Investment); and regular loans, guarantees, equity investments, and technical assistance from Multilateral Development Banks (MDBs). ( orldbank/document/Poverty%20documents /WB-PREM%20financing-for-development- pub web.pdf) devpolicy.org

FINANCING FOR DEVELOPMENT: FACT NO. 6  Multilateral Development Banks (MDBs) (e.g. World Bank, Asian Development Bank, and Inter- American Development Bank) are composed of member countries, with a capital stock that comes ultimately from respective member countries’ tax payments. (Susan McAdams, What is Financing for Development, FFD MOOC)

FINANCING FOR DEVELOPMENT: FACT NO. 5  MDBs strive to increase to 2 to 5USD every 1USD received (multiplier effect) to ensure more funding for development- related projects. MDBs raise funds not only through capital contributions, but also through bonds (in which MDB becomes the borrower). ( MDB-Contributions-July pdf)

FACT NO. 4  Domestic Resource Mobilization (DRM) is the largest development finance source, and requires well- designed tax systems; efficient and corrupt-free collection; and development-appropriate expenditures. ( D-MDB-Contributions-July pdf)

FINANCING FOR DEVELOPMENT: FACT NO. 3  Private sector finance is crucial for development finance, and critical for partnership with the public sector. ( 08/ifi-development-private-sector.pdf) In Asia alone as of 2009, there is 4Trillion USD in unutilized private sector funds. ( savings-private-sector-finance-infrastructure-adb)

FINANCING FOR DEVELOPMENT: FACT NO. 2  Philanthropy is a private sector development financing mode that is appropriate for projects that may not appeal to MDBs or local development banks, because of risk or minimal/zero profit. ( k/document/Poverty%20documents/WB- PREM%20financing-for-development-pub web.pdf) ryanvalle.me

FINANCING FOR DEVELOPMENT: FACT NO. 1  1.2 Billion of 7Billion plus people still live in extreme poverty. If loans are used for appropriate projects, if available funds (e.g. sovereign wealth funds, pension funds) are tapped for development finance, if funds are multiplied to serve more people, and if capacity and awareness of governments and citizens are improved, removing poverty is feasible in this generation. mpbleadersteam.blogspot.com