1. Financing for Development Dr
Financing for Development Dr. Shamshad Akhtar, Under-Secretary-General of the United Nations & Executive Secretary of The Economic and Social Commission for Asia and the Pacific Dialogue of the Executive Secretaries of the Regional Commissions with the UN General Assembly Second Committee Monday, 23 October 2017, 10 a.m.-1 p.m.

2. Gross savings
10 Asia-Pacific countries rank among the world’s top 20 in terms of gross savings rate. Overall, the region has significant financial capacity to support sustainable development and the key is how to channel it to where it is most needed.
Source: WDI

4. City finance
Local governments in Asia-Pacific face significant vertical fiscal imbalances and heavily depend on central government transfers for local expenditure.
Share of Total Public Expenditure
Share of Total Public revenue
Country
Subnational
Upper Tier
Lower Tier
Bangladesh 15 5 10 2 1
India 66 33 30 3
Indonesia 35 7 28 8
5.5
2.5
Japan 60 20 40
Republic of Korea 45 25
Pakistan
6.5
0.5
Philippines 11 14
7.5
China 70 50
Thailand
Viet Nam
Source: ESCAP, forthcoming. Tax Policy for Sustainable Development in Asia-Pacific, Chapter 2. Data originally from Blane Lewis and Bob Searle. 2010

7. Tax revenue
Public revenues can contribute more to SDG financing by increasing the role of personal income tax and wealth taxes. Currently, the tax structure in the region is skewed towards indirect taxes and corporate income tax.

8. Tax incentives
Shadow/informal economy can lead to serious tax base erosion in developing countries, which can create pressure for governments to provide tax incentives to stay in the formal sector.
Source: ESCAP, forthcoming. Tax Policy for Sustainable Development in Asia-Pacific, Chapter 3. Data originally from IMF, Government Finance Statistics; Hassan and Schneider (2016).

10. GST reform in India
Tax revenue can also be increased by increasing the efficiency of taxation. The new GST in India will replace a wide range of indirect taxes imposed by the centre and the states, including central government customs, excises and services taxes.

11. Tax and inequality
Despite fast growth and significant poverty reduction, the share of lower income groups in total consumption uniformly deteriorated between 1990s and 2010s.
Source: ESCAP, forthcoming. Tax Policy for Sustainable Development in Asia-Pacific, Chapter 4. Data originally from ESCAP, based on World Development Indicators

12. Tax and inequality
Wealth inequality is much higher in Asia-Pacific countries and typically peaks after income inequality peaks.
Source: ESCAP, forthcoming. Tax Policy for Sustainable Development in Asia-Pacific, Chapter 4. Data originally from Credit Suisse, Global Wealth Databook 2016

13. Tax Revenues and Income Inequalities

14. Social Transfers and Income Inequality

15. Social Transfers and Tax Revenues

16. Infrastructure financing
Newly established multilateral financing institutions will double the sources of multilateral & cross-border infrastructure financing in Asia-Pacific.
ADB - Asian Development Bank
EDB - Eurasian Development Bank
AIF- ASEAN Infrastructure Fund
SDF - SAARC Development Fund
AIIB - Asian Infrastructure Investment Bank NDB - New Development Bank
SRF - Silk Road Fund
Source: ESCAP estimation based on official announcements and reports

17. Capital market
Local currency bond market remains small in most Asia-Pacific developing countries, but fast bond market growth in countries like China and Thailand show its potential.
Source: ESCAP, Working Paper, State of Finance in Asia and the Pacific. Data originally from ADB Asia Bond Online 2017.

18. Average Maturity Of Corporate Bonds (in years)
Capital market
The mismatch of demand for long-term financing and the relatively short maturity of corporate bonds in developing Asia-Pacific remains a significant challenge.
Average Maturity Of Corporate Bonds (in years)
2000
2005
2009
2010
2011
2012
2013
2014
Advanced Economies
United States
7.89
11.92
9.51
10.26
10.44
10.57
11.11
11.41
Germany
5.14
12.33
5.42
5.8
6.06
6.93
6.94
7.99
Financial Hubs
Hong Kong China
4.1
7.9
9.6
5.9
8.6
9.2
6.1
6.47
Singapore
4.6
4.2
5.1
4.7
7.4
4.8
5.25
Mature Markets
Japan
6.97
8.05
7.31
6.75
5.99
6.87
Rep of Korea
3.1
2.9
3.4
3.8 5
5.63
Australia
9.18
6.78
11.9
11.32
10.73
8.62
10.2
Growing Giants
China
3.83
India
6.7
6.6 6
5.5
6.92
Emerging Countries
Indonesia
3.9
4.3
4.4 …
Thailand
5.13
Malaysia
2.7
1.1
7.1
7.7
Philippines
5.4
6.4
7.6
8.3
8.7
Source: ESCAP, Working Paper, State of Finance in Asia and the Pacific. Data originally from Ratna Sahay, Jerald Schiff, Cheng Hoon Lim, Chikahisa Sumi, and James P. Walsh “The Future Of Asian Finance”. International Monetary Fund.

19. Capital market
The stock markets in a number of Asia-Pacific emerging countries are already large in terms of market capitalisation, yet much less active compared with more mature markets in advanced countries.
A. Stock Market Cap to GDP ratio in B. Stock Market Turnover Ratio in 2014
Countries
Stock Market
Turnover Ratio
Kazakhstan
7.6
Sri Lanka
8.6
Philippines
16.1
Indonesia
21.2
Malaysia
29.1
Viet Nam 36
India
50.9
Republic of Korea
149.8
Japan
113.8
World
162.9
Source: ESCAP, Working Paper, State of Finance in Asia and the Pacific. Data originally from World Bank Indicators 2017 and World Bank Global Financial Database.