Modus Operandi and Activities of Permanent Secretariat in Innovative

FinancingChristine Rosellini

Ministry of foreign affairs and international development, France

Tbilissi, 16 décembre 2015

Presentation outline

1. Introduction to innovative financing The concept IFD and Addis Abeba Action Plan The Declaration on solidarity levies to boost revenues for sustainable

development

2. The Leading group on innovative financing Composition of the Leading Group Presidency of the Leading Group Permanent secretariat Meeting Formats

1.1 What is innovative financing?

• There is no agreed definition !

• Discussed and explored at the UN since the Monterrey Conference on financing for development (2002)

• Considered as one of the means of implementation of the 2030 Agenda on sustainable development

• Emblematic of the necessary « shift » in development financing

1.1 What is innovative financing?

• Limits of traditional public aid flows to acheive sustainable development

• Need to find a response to a double challenge : Scarcity of resources for development Need of efficiency of available resources

• Need to find innovative solutions to address the specific challenges of the preservation of global public goods and sustainable development

1.1 Innovative sourcing / innovative spending

• Two sub-categories of innovative financing can be highlighted:

Innovative sources of financing which help generating new resources for development as a complement to existing budgets

Innovative mechanisms of financing which allow maximizing the leverage and/or the impact of available resources, through partnerships with the private sector for instance

• Relying on economic sectors which most benefitted from globalization

• Addressing global challenges with global players and instruments

• Offering more stability and predictability to development finance

1.1 Several guiding principles

1.2 IFD and Addis Abeba Action Plan

• One dedicated paragraph of the Addis Ababa Action Agenda.

• The Leading group positively welcomes this outcome which paves the way for a scaled up and more systematic use of innovative instruments.

• Quote some mecanisms that have proven their efficiency for sustainable development, such as the International Finance Facility for Immunisation (IFFIm), thematic bonds, triangular loans, pull mechanisms and carbon pricing.

• But no reference to the solidarity levies.

1.3 The Declaration on solidarity levies

• Adoption of a “Declaration on solidarity levies to boost revenues for sustainable development” (Chile, France, Korea, the International Organisation of la Francophonie and Stamp Out Poverty) on July 14th 2015.

• This political declaration aims at raising awareness on these instruments based on contributions from the economic sectors that have profited from globalization.

• Hence, We call all voluntary countries to sign this declaration!

2.The Leading group on innovative financing

• The Leading Group consists of 66 states and numerous international and non-governmental organizations

• France holds the Permanent Secretariat. Presidency is currently vacant but Chile is the last chair.

• An informal platform of exchange of good practices.

• Promoting the scaling up of existing initiatives and encouraging political mobilization at the international level

2.1 Composition of the Leading Group

South Africa, Algeria, Saudi Arabia, Austria, Bangladesh, Burkina Faso, Belgium, Benin, Bhutan, Burundi, Brazil, Cambodia, Cameroon, Cape Verde, Chile, China, Cyprus, Congo, Ivory Coast, Korea South, Djibouti, Ecuador, Egypt, Ethiopia, Finland, France, Gabon, Georgia, Guatemala, Guinea, Guinea Bissau, Haiti, India, Italy, Japan, Jordan, Lebanon, Liberia, Luxembourg, Madagascar, Mali, Mauritius, Morocco Mauritania, Mexico, Mozambique, Namibia, Nicaragua, Niger, Nigeria, Norway, Netherlands, Poland, Central African Republic, Romania, United Kingdom, Russia, Sao Tome and Principe, Senegal, Sierra Leone, Sri Lanka, Togo, Uruguay + European Commission.

2.1 Composition of the Leading Group

International organizations: African Development Bank, Asian Development Bank, Inter American Development Bank, World Bank, OECD, UNDP, UNICEF, UNFPA, FAO, IFAD, WHO, African Union, Global Fund to fight against AIDS, malaria and tuberculosis, GAVI , IOF, Commonwealth Secretariat, Global Fund for Cities Development, International Union for the Conservation of Nature (IUCN), UNAIDS, UNDESA, UNESCO, UNEP, UNITAID, NEPAD, etc.

Foundations and corporations: Bill and Melinda Gates Foundation, Rockefeller Foundation, Althelia Ecosphere, Crédit Cooperatif, Babyloan, Dalberg, Finance Participative France, Funbio Brazil, Heoh, Rencontres du Mont Blanc, Chirac Foundation, Innovative Finance Foundation, Medicine Patent Pool, IFFIm, etc.

2.1 Composition of the Leading Group

Non-governmental organizations:

ACF - Action against hunger, ATD Quart-Monde, Attac, Care, CCFD Terres Solidaires, Center of Concern, Coalition PLUS, Coordinationsud, CONCORD, Epargne sans Frontière, EURODAD, Global Financial Integrity, Milken Institute, ONE, Oxfam, Climate Action Network, Results Japan, Stamp Out Poverty, Tax Justice Network, R20, etc.

2.2 Presidency of the Leading Group

The Leading group is chaired by a different country every year. Chile has chaired the Leading group in 2014-2015. The next president of the group will be appointed shortly.

The chair is designated by consensus, on the basis of expressed candidates, following a principle of geographic rotation. The chair the Leading group entails the following responsibilities :

(1) Act as a leader in promoting innovative financing for development, especially within the UN (General Assembly of the United Nations in particular) and become the spokesman of the Leading group to disseminate its messages to the international community. (2) Establish, in collaboration with the Permanent secretariat (France), a work program for the year. (3) Organize and host a plenary session at the end of term.

2.2 Presidency of the Leading Group

• Currently vacant, the presidency of the Leading Group is held on rotating basis by a member country for six months.

• Since its creation, the presidency has been held by Brazil, Norway, South Korea, Guinea (2nd half of 2008), France (1st half of 2009), Chile (2nd half 2009 - 1st half 2010), Japan (2nd half 2010), Mali (2011), Spain (2011-2012) and Finland (september 2012 - february 2013), Nigeria (2013 – 2014) and Chile (2014-2015).

2.3 Permanent Secretariat

Since the beginning of the Leading group, founded at the end of the Paris Conference on Innovative Financing in 2006, France (Ministry of Foreign Affairs and International Development), has hold the permanent secretariat of the group.

This means that France coordinated the network of actors involved in the Leading group, offers work topics in relation with the rotating presidency and supports the logistical aspects of meetings and events.

2.4 Meeting Formats

Plenary Sessions : Traditionally held annually in the capital of the Chair country, a plenary session allows to address in depth all the topics related to innovative financing, present existing initiatives and share lessons learned and experience feedback of the pilot projects.

Technical workshops can also be programmed at the initiative of the permanent secretariat or another member of the group on a topic related to international agenda.

Side events : This is the main meeting format of the Leading group. These events allow to act on the sidelines of major summits and international conferences on development by communicating - through the intervention of a high-level panel - on the benefits of investing in innovative sources and mechanisms,

Conclusion: joining the leading group

The Leading group is an informal forum, and each member brings his expertise and specificity. Being a member does not imply any obligation of implementing a mechanism of innovative financing. It does not either constrain the revenues of any already existing mechanism.

Any country or organization may request accession to this enclosure by verbal note or letter to the Presidency of the Leading Group and the Permanent Secretariat.

Please join us!