THE KEYS TO SUSTAINABLE DEVELOPMENT

The Sustainable Development Goals (SDGs)

Image from unep.org

The Sustainable Development Goals (SDGs)

Source: United Nations (SDGs Website: https://sustainabledevelopment.un.org/?menu=1300)

The Sustainable Development Goals in 2030

Adopted in September 2015 at the end of the MDGs, the SDGs are the goals to sustainable

development.

The SDGs allow for the broadening and deepening of the meaning of development.

They represent:•A new way of thinking•The complex nature of the problems faced around the

world•The value for human life (a better world for future

generations)•Meeting the needs of the present without compromising

the ability of future generations to meet their own needs.

•Shared responsibility and Solidarity•The need to work as a global community•Taking better care of our home (Earth) and the people

who occupy it.

The Importance of Development• Economic Growth• National Wealth• Human Development (measured by life

expectancy, adult literacy, and access to education, in addition to average income levels)

• Economic Security-(Access to clean air & safe drinking water)

• Freedom of Speech• Freedom of Choice• Food Security• Political Freedom• Easy Access to Social Services

– Health– Education (all three levels) – Communication– Transportation

Recipe for Successful SDGs

Working together as a Community

Public-Private Partnership

for development

needs

The scientific and academic

community working in

synergy

The Financial Resources (The provisions and

management of funds)

You and Me

The Key Players and Challenges

• The IMF• The World Bank• OECD Institutions• Multilateral

Development banks• Private Philanthropy• Public Sector• Domestic Institutions

Key Player

s

• Insufficient Resources• Remittances• Top-Down Process• Ineffective Domestic

Resource Mobilization• Ineffective private

finance mobilization• Public and Private

Sector Partnership

Challenges Faced

Achieving Effective Public FinanceDomestic Resource

Mobilization (DMR)

The largest source of funding generated within the country. •(personal income tax, corporate and business-related taxes, and public revenue streams and debt management strategies)

Illicit Financial Flows is one of the main issues relating to

DRM. Others include weak tax

administration & tax policy.

International Public Finance

Official Development Assistance (ODA)•(Is concessional in nature and is provided to finance development agenda in low and middle income countries)ODA, FDI, Capital Market and Grants

are a few of the sources of finance

for developing countries

The Role of the Private Sector

Drivers of Private Finance

Investment opportunities based on risk/return consideration

High returns and diversification

MDBs and IMF are key

supporters of private

developmentThey are essential in providing •Policy Guidance (Administration and Reform)

•Technical Assistance•Capacity Building

These institutions aim to build strong macroeconomic and

investment climate, mobilize and crowd in private investment.

ODA financing can be used to leverage billions of dollars in private finance and increase

private sector participation in development ventures.

Sources of Private Finance

Achieving the SDGs

Require Innovative and Smart

Financing

• Foreign Direct Investment (FDI)

• International Portfolio Investment

• Bank Loans• Concessional

Loans• Capital Markets • Domestic

Financial Markets

• Private Transfers

• Private Philanthropy

Institutional Investors consist of

“Commercial & Public Finance”

Sovereign Wealth Funds

Public and Private Pension

Funds

University Endowments.

Economic Growth

Know-how and

technology transfer

Job creation

Productivity Gains

Private Investment Underpins

Other Key Methods of Finance

Blended Finance - Combines public sector’s social return

objectives and private sector’s financial return objectives

through risk mitigation by the public sector in a manner that induces the private sector to

participate.

Commercial Finance - Commercial finance is a

source of public finance with the same risk/return

objectives as the private sector.

The Importance of the SDGs

Achieving the SDGs can attain higher

levels of economic development and

growth.

Gross Domestic Product (GDP) can be

a weak indictor of the full

developmental potential of an

economy.

Slow economic development can

stagnate economic growth

Different countries have different development

priorities

Aim of the SDGs

End all forms of Poverty

Transforming all Lives

Protecting the Planet

Where to Now….2030?The SDGs will pick up

where the MDGs left off.

The financial resources needed to achieve the

SDGs will surpass current development

financial flows

Each country will be responsible for its own

development

The international community will

provide the necessary funding and support

Financial resources will be used optimally

Let’s All Work Towards Achieving Sustainable Development