Post on 16-Jan-2016
RHSC Financing Mechanisms
Workstream A « Mobilizing Additional Dollars »
Phase I
Dr. Wolfgang Bichmann, KfWConsultant: Sandra Rolet
RHSC MeetingBonn, October 19-20, 2006
SSG focus on “Better $ “ & on “More $”
Origin: Den Haag & Seattle meetings - (Gates Foundation Mercer Study / DFID studies)
Agreement to support further work
Gates Foundation proposed two workstreams, as above
– Gates Foundation pursued “Better $” (McKinsey)– BMZ/KfW offered to support “More $” (This study /
Phase I)
Phase I study - Findings
The specificity of RH commodities supply
Changes on the development finance scene / Possible sources of new finance
Extensive review of “innovative development finance” potentially relevant for RHCS
What it takes for the RHSC to make progress in raising additional $
Specificity of RH Commodity Supplies More at stake than money & …
… Absence of a dedicated global RH instrument …
Pros & ConsCoalition members express reserves
Wide choice of approaches to fit different situations and constraints
Raising large amounts √ Working on small scale Requiring political support √ More “ready to go” Fit for one single situation √ For a larger swat of
countries Feasible for sophisticated, cohesive group of
countries √ Accessible to the poorest
Each solution has its logic, development fit, cost-benefit ratio and specific requirements
It is a time of opportunity for the RHSC
Overall need is there
ODA architecture more “dynamic”
Innovation “in” (2006: Year of the pilots)
New partnership and alliances possible
Before an option can be chosen, a few key issues need resolving 1. Where would the RHSC like this to go: What would
the $ be for? To fill which gap? Objectives need to be narrowed down into a compelling agenda
2. Where would the additional $ go?– To the Coalition itself?– To one or several members?– To one country or to a group of countries?– Elsewhere?
3. Championing the cause: Through which channel would the financing option be pursued? Would the Coalition itself champion the effort?
Suggestion for next steps…
RHSC and SSG to reflect/confirm fundamental strategic choices (Previous slide)
Small ad hoc SSG sub-committee (with financial leaning) to interact with consultant on choice of route to fit these choices
RHSC to pursue short-term opportunities in the meantime (Ex: Air ticket tax)