Do you think that Multilateral Development Banks are truly committed to implementing the UN's Agenda 30 and the Sustainable Development Goals?
Hi, Everyone!
The answer to this question is certainly affirmative.
Referring to the agreement signaled on October 9, 2016, by the multilateral development banks (MDBs), it is clear that MDBs and the IMF plays a critical role in supporting the achievement of the Sustainable Development Goals (SDGs) because they provide not only the necessary financing (either directly or by helping to leverage, mobilize and catalyze additional public and private resources from third parties, at all levels) but also policy advice and technical assistance supporting countries to build domestic capacity and to identify needed priority investments with the right standards. In addition, the IMF and the World Bank are strengthening their debt sustainability assessment tools to ensure that the new investments don't threaten the sustainability of public finances (The World Bank, 2016).
The UNs SDG 2030 lists 17 core goals, 169 targets, and requires approximately USD 6 trillion of annual investment to build a better world. Of the USD 6 trillion required, 3.8 trillion needs to be invested in developing countries. Of this amount, only USD 1.3 trillion is being spent, leaving a funding gap of 2.5 trillion. For the closing of this gap, is needed a significant investment from the private sector.
Obviously, achieving the SDGs requires the effective development of sustainable finance for obtaining the transformative outcomes essential for their success. That implies to build a financing framework that channels more resources from more sources, to enhance existing partnerships, and to build new ones with the private and public sectors, at global, regional, sub-regional and national levels, sharing risks in non-sovereign operations with private investors, expanding policy guidance and technical assistance to support country efforts to increase their domestic resource mobilization (The Word Bank, 2016; UNCTAD, 2018).
Remembering the fact that emerging markets are fragile and subject to several potential issues that discourage the private sector (like current account deficits, external debt accumulation, dollar dependency, short-term debt dependence, fiscal deficit, productivity issues, sanctions and other political issues, and institutional weakness), MDBs need to increase their catalytic role in finance (Picut, 2020).
This is their new role, especially, during difficult times that are all of us experiencing as a consequence of the unpredicted economic crisis derived from COVID-19.
Sources:
The World Bank (2016, October 9) Statement by Multilateral Development Banks: Delivering on the 2030 Agenda. Retrieved from: https://www.worldbank.org/en/news/press-release/2016/10/09/delivering-on-the-2030-agenda-statement
UNCTAD (2018). Scaling up finance for the sustainable development goals: Experimenting with models of multilateral development banking. Retrieved from: https://unctad.org/system/files/official-document/gdsecidc2017d4_en.pdf
Picut, A. (2020, April 1) Platforms to help multilateral development banks drive sustainable development goals. In Finastra. Retrieved from: https://www.finastra.com/viewpoints/blog/platforms-help-multilateral-development-banks-drive-sustainable-development-goals
The answer to this question is certainly affirmative.
Referring to the agreement signaled on October 9, 2016, by the multilateral development banks (MDBs), it is clear that MDBs and the IMF plays a critical role in supporting the achievement of the Sustainable Development Goals (SDGs) because they provide not only the necessary financing (either directly or by helping to leverage, mobilize and catalyze additional public and private resources from third parties, at all levels) but also policy advice and technical assistance supporting countries to build domestic capacity and to identify needed priority investments with the right standards. In addition, the IMF and the World Bank are strengthening their debt sustainability assessment tools to ensure that the new investments don't threaten the sustainability of public finances (The World Bank, 2016).
The UNs SDG 2030 lists 17 core goals, 169 targets, and requires approximately USD 6 trillion of annual investment to build a better world. Of the USD 6 trillion required, 3.8 trillion needs to be invested in developing countries. Of this amount, only USD 1.3 trillion is being spent, leaving a funding gap of 2.5 trillion. For the closing of this gap, is needed a significant investment from the private sector.
Obviously, achieving the SDGs requires the effective development of sustainable finance for obtaining the transformative outcomes essential for their success. That implies to build a financing framework that channels more resources from more sources, to enhance existing partnerships, and to build new ones with the private and public sectors, at global, regional, sub-regional and national levels, sharing risks in non-sovereign operations with private investors, expanding policy guidance and technical assistance to support country efforts to increase their domestic resource mobilization (The Word Bank, 2016; UNCTAD, 2018).
Remembering the fact that emerging markets are fragile and subject to several potential issues that discourage the private sector (like current account deficits, external debt accumulation, dollar dependency, short-term debt dependence, fiscal deficit, productivity issues, sanctions and other political issues, and institutional weakness), MDBs need to increase their catalytic role in finance (Picut, 2020).
This is their new role, especially, during difficult times that are all of us experiencing as a consequence of the unpredicted economic crisis derived from COVID-19.
Sources:
The World Bank (2016, October 9) Statement by Multilateral Development Banks: Delivering on the 2030 Agenda. Retrieved from: https://www.worldbank.org/en/news/press-release/2016/10/09/delivering-on-the-2030-agenda-statement
UNCTAD (2018). Scaling up finance for the sustainable development goals: Experimenting with models of multilateral development banking. Retrieved from: https://unctad.org/system/files/official-document/gdsecidc2017d4_en.pdf
Picut, A. (2020, April 1) Platforms to help multilateral development banks drive sustainable development goals. In Finastra. Retrieved from: https://www.finastra.com/viewpoints/blog/platforms-help-multilateral-development-banks-drive-sustainable-development-goals
Comentarios
Publicar un comentario