3. The systematic use of scientific and technical knowledge
to meet specific objectives or requirements
An extension of the theoretical or practical aspects of a
concept, design, discovery, or invention.
The process of adding improvements to a parcel of land,
such as grading, subdivisions, drainage, access, roads, utilities.
5. It is the act of providing funds for development purposes
and the whole range of management activities that guide
the allocation and use of those funds.
Financing for development is focused on new
stakeholders in the financing of development
cooperation and to support poor countries' financing of
development and poverty reduction a necessity when
official development assistance is no longer sufficient.
It reduces capital flight and increase taxation of
international companies in the countries where they
operate.
6. Financing For Development
APPROACH
Need to focus both on more financing and on effective financing. It's more
money and smarter money to reach the SDGs. And that development needs to
be economically, socially and environmentally sustainable.
The challenges of mobilizing the financing resources needed to help meet the
SDGs.
Developing new approaches and intervene public- private solutions that
mobilize al types of finance(public, private, domestic and international) all for
development.
Calling for unprecedented levels of cooperation, partnership and coordination
among the MDBs, UN, private sector, civil society academic organization and
governments.
9. INTERNATIONAL
INSTITUTIONS
Aims to stabilise the international monetary system and
help when monetary flow from trade causes problems
Provides help and advice as well as funds to countries
experiencing balance of payments problems
IMF gets its funds from its 184 member states
Focusing on providing funds for projects
Aimed at alleviating poverty, inequality
and promoting development
Currently has 184 members
10. Grants
Concessional Loans
Loans
Equity Investments
Guarantees
TYPES OF FINANCING FROM THE WORLD BANK
11.
12. Aiming to bridge the gap between the funds currently pledged and
those needed to meet the Millennium Development Goals (MDGs)
Uses the long term commitments of donor countries as security for
raising further funds on international capital markets
Aims to raise an extra $50 billion per year between now
and 2015
INTERNATIONAL FINANCE FACILITY
(IFF)
13. Policies to attract investment
Has been criticised as being a means by which MNCs can
exploit poorer countries
Policies need to focus on having the right conditions in place
such as Infrastructure, Security, Peace, Local laws and
regulation, Government corruption, Tax regime
FOREIGN DIRECT INVESTMENT
(FDI)
14. To help developing countries improve tax systems to generate
tax revenue more efficiently
International taxes on pollution, air transport, arms, rent on
deep sea mineral extraction – funds raised used to help fund
development
Aims to reduce short term speculative trades and stabilise
currency flows
Issues of how far such taxes could raise sufficient funds and
whether they would distort markets too much
TAX
MEASURES
16. The process through which countries raise and spend their own
funds to provide for their people is the long-term path to
sustainable development finance.
It is not only provides governments with the funds needed to
alleviate poverty and deliver public services, but is also a
critical step on the path out of aid dependence.
It does not necessarily mean new taxes or higher tax rates.
Governments often see their revenues rise though improved
audits or simplified filing processes.
Tax Revenue
Income Tax
VAT
Import Duty
Excise Duty
Sources of
Public Revenue
Non Tax Revenue
Fees
Charges
Fines
Social Security
Repayments from Domestic
DOMESTIC RESOURCE
MOBILIZATION
17. Improving good governance and fighting corruption, better tax
policies, administration and public expenditure efficiency
Change technology and practice to improve collaboration and
cooperation
Conditions can be achieved by good governance and savers will
feel confident to save, investors to invest, and both will be served
by accountable governments providing public goods
Reduce red tape impediments to doing business and create a
new era of public private can collaboration.
WAYS OF DOMESTIC PUBLIC
RESOURCES
18. Raising the revenue fairly and equitably Ensure that when revenue
is spent it leads to improve service such as school, education, health
etc.
Improving the investment climate and reduce red tape impediments
to doing business.
Introduce new rules of law in place, take incentive for foreign
investor and try to reduce illicit financial flow
CONTINUED….
19. APPROACH
Domestic Resource Mobilization
For
Country
By increasing the TAX- GDP ratio
Increasing Public expenditure efficiency
Decreasing energy subsidies
Improving the infrastructure with the existing resource for better
efficiency
20. OFFICIAL DEVELOPMENT
ASSISANCE
THE ROLE
OF
ODA is the key measure used in practically all aid targets and assessments
of aid performance.
The DAC defines ODA as “those flows to countries and territories on the
DAC List of ODA Recipients and to multilateral institutions which are
provided by official agencies, including state and local governments, or by
their executive agencies.
The each transaction of which is administered with the promotion of the
economic development and welfare of developing countries as its main
objective is concessional in character and conveys a grant element of at
least 25 per cent.
21. OFFICIAL DEVELOPMENT
SSISANCE
COVERAGE
Military aid: No military equipment or services are reportable as ODA. Anti-
terrorism activities are also excluded. However, the cost of using donors’ armed
forces to deliver humanitarian aid is eligible.
Peacekeeping: Most peacekeeping expenditures are excluded in line with the
exclusion of military costs. However, some closely-defined developmentally
relevant activities within peacekeeping operations are included.
Nuclear energy: Reportable as ODA, provided it is for civilian purposes.
Cultural programs: Eligible as ODA if they build the cultural capacities of
recipient countries, but one-off tours by donor country artists or sportsmen, and
activities to promote the donors’ image, are excluded.
23. INTERNATIONAL DEVELOPMENT
ASSOCIATION
THE ROLE
OF
The International Development Association (or "IDA") is the World Bank’s
fund for the poorest countries. Since its inception in 1960, it has been a
core part of global development finance, providing half a trillion dollars, in
constant 2015 prices, for investments in 112 countries.
It provides long -term loans at zero interest to the poorest of the
developing country.
IDA’s goal is to reduce the disparities across and within countries, to bring
more people into the mainstream.
It helps build the human capital, policies, institutions and physical
infrastructure needed to bring about equitable and sustainable growth.
24. INTERNATIONAL DEVELOPMENT
ASSOCIATION
Financing
FY16 Top 10 Borrowers $ million
Ethiopia 1,862
Vietnam 1,670
Bangladesh 1,557
Pakistan 1,460
Nigeria 1,075
India 1,025
Tanzania 864
Kenya 646
Congo, Dem. Rep. 600
Ghana 500
Source: http://ida.worldbank.org
IDA Lending by
Sector
% of total
Infrastructure 36
Social Services 28
Public Admin. and
Law
17
Agriculture 10
Industry and Trade 5
Finance 3
27. BLENDED FINANCE
Blended finance is defined as the complementary use of grants (or grant-
equivalent instruments) and non-grant financing from private and/or public
sources to provide financing on terms that would make projects financially viable
and/or financially sustainable.
It has three key characteristics:
Leverage: Use of development finance and philanthropic funds to
attract private capital into deals.
Impact: Investments that drive social, environmental and
economic progress.
Returns: Financial returns for private investors in line with market
expectations, based on real and perceived risks.
30. BLENDED FINANCE
THE ROLE
OF
Returns are seen as too low for the level of real or perceived risks.
Markets do not function efficiently, with local financial markets in developing
economies particularly weak.
Private investors have knowledge and capability gaps, which impede their
understanding of the investment opportunities in often unfamiliar territories.
Investors have limited mandates and incentives to invest in sectors or markets with
high development impact .
Local and global investment climates are challenging, including poor regulatory and
legal frameworks.
31. BLENDED FINANCE
APPROACHES
OF
Technical Assistance
(Technical/Operational
Expertise)
Technical Assistance addresses risks in new, uncertain and fragmented markets for investors. Costs and risks
associated with exposure to new markets, technical uncertainty,
and the inability to build a pipeline can be reduced through this mechanism.
Risk Underwriting
(Capital Preservation)
Risk Underwriting reduces specific risks associated with a transaction. This mechanism provides direct
compensation or assumes losses for specific negative events.
Market Incentives
(Results-based
Financing/Price
Guarantees)
Market Incentives address critical sectors that do not support market fundamentals. This helps new and
distressed markets that require either scale to be commercially viable or reduced volatility, by providing fixed
pricing for products.
32. PRIVATE
PHILANTHROPY
THE ROLE
OF
Philanthropic foundations play an important role in sustainable development is not
only in mobilizing financial resources, but also as development actors in their own
right. Until recently, however, governments and foundations have often followed
parallel paths without engaging in genuine complementary partnerships.
It will require a paradigm shift in how governments approach foundations,
embracing them as catalytic partners rather than solely considering them as
financiers.
The distinctive role of foundations in the development arena, and acknowledging
the innovative practices emerging from the philanthropic sector, the OECD
Development Centre launched the OECD Global Network of Foundations Working
for Development (netFWD) to serve as a platform for co-operation and exchange,
and as bridge between foundations and policy makers.
33. PRIVATE
PHILANTHROPY
THE ROLE
OF
Philanthropy’s financial contribution to development has nearly multiplied by ten
over a decade.
Philanthropy’s non-financial contribution to development includes testing
innovative approaches and leveraging resources from others.
35. CONTINUED….
Multilateral Debt for climate swaps initiative
Unlock funds to finance climate change adaption and mitigate projects
Remittances represent a key external financial flow
Unlocking value from Diaspora flows
Encouraging private voluntary contributions through matching funds
WORLD BANK facilitate the insurance of the bond by providing technical advice
Generate additional development funds by tapping new funding sources (that is, by looking beyond conventional
mechanisms such as budget outlays from established donors and bonds from traditional
international financial institutions) or by engaging new partners such as emerging donors and actors
in the private sector).
Enhance the efficiency of financial flows, by reducing delivery time and/or costs, especially for
emergency needs and in crisis situations.
Make financial flows more results-oriented, by explicitly linking funding flows to measurable
performance on the ground.
38. Conflict, natural disasters, fragility, and humanitarian emergencies deprive millions of children
around the world of their right to education.
FRAGILE OR CONFLICT
During conflict, schools are often destroyed or become unsafe. Students are forced out of school,
making them more vulnerable and at risk of violence, forced labor, and permanent displacement,
without a guarantee that they can go back to school when they arrive at a safer destination.
Ensuring that children have access to education during conflict and crises protects their rights,
instills a sense of normalcy, and fosters resilience, inclusion and tolerance, supporting the long-
term processes of rebuilding and peace-building.
40. THE CHALLENGE
Citizen security is a growing concern in middle-income countries, closely
linked to rising inequality
Poverty will increasingly be concentrated in countries affected by fragility,
with almost half the world’s poor expected to live in these situations by 2030.
By 2030, the share of global poor living in fragile and conflict-affected
situations is projected to reach 46 percent.
Domestic expenditure on education as a share of total public expenditure increased
globally in low- and middle-income countries, on average, by 0.42 percentage
points (from 16.12% to 16.54%), while the average increase in GPE partner
developing countries was 1.46 percentage points.
42. SOLUTIONS
Redefining fragility and monitoring the global,
regional, and country fragility risks.
Developing an operational framework for effective
support in countries affected by fragility and
conflict
Invest in the enabling environment for
technology adoption.
Developing innovative financing solutions,
including with private sector involvement, for
situations of fragility, conflict, and violence.
Establishing strong partnerships for
sustainable peace and development with
humanitarian, security, diplomatic, and
development actors.
Developing innovative financing solutions,
including with private sector involvement and
promoting fragility risk reduction in Bank
operations and ensuring operational and financial
rapid response to protracted and recurring crises.