ODA and innovative financing to meet the SDGs · 2020. 9. 10. · ODA and innovative financing to...
Transcript of ODA and innovative financing to meet the SDGs · 2020. 9. 10. · ODA and innovative financing to...
ODA and innovative financing to meet the SDGs
Paul HorrocksHead of Financing for Sustainable Development Development Cooperation DirectorateOECD
Contents
Overview of ODA trends
Innovative Financing to meet the SDGs
1
2
1. Overview of ODA trends
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Total net flows from DAC countries to developing countries, 1976-2017
0
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1976
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2017
Cons
tant
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7 U
SD b
illio
n
ODA OOF Officially Supported Export Credits Private flows Net private grants
ODA Trends
(a) Total DAC excludes debt forgiveness of non-ODA claims in 1990, 1991 and 1992.
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0
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1960
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(a)
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(p)
OD
A a
s pe
rcen
t of
GN
I
Cons
tant
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7 U
SD b
illio
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Net official development assistance, 1960-2018
Total ODA(left scale)
ODA/GNI(right scale)
Components of net ODA from DAC countries
0
20
40
60
80
100
120
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160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (p)
Co
nst
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t 2
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7 U
SD
bil
lio
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Bilateral development projects, programmes and technical co-operation Multilateral ODA Humanitarian aid In-donor refugee costs Net debt relief grants
Donor Performance in 2018 - Volume
34.26
24.99
19.40
14.17
12.15
5.84 5.625.01 4.65 4.26
3.12 3.09 2.87 2.58 2.35 2.291.18 0.98 0.93 0.76 0.56 0.47 0.39 0.32 0.28 0.19 0.13 0.08 0.08
0
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USD billion
ODA in 2018 on a grant equivalent basis- amounts
153.0
Donor Performance in 2018 – ODA/GNI ratio
1.04
0.980.94
0.720.70
0.61 0.61
0.44 0.43 0.43
0.360.31 0.31
0.28 0.28 0.280.26
0.24 0.230.20
0.17 0.17 0.16 0.15 0.14 0.14 0.14 0.13 0.13
0.31
0.0
0.1
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1.0
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As % of GNI
ODA in 2018 on a grant equivalent basis - as a percentage of GNI
Average country effort 0.38
ODA percent change between 2017 and 2018
-30
-20
-10
0
10
20
30
Perc
enta
ge c
hang
e in
real
ter
ms f
rom
201
7 to
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8
Share of loans for loan giving countries, 2018
0%10%20%30%40%50%60%70%80%90%
100%
Shar
e of
loan
s in
gro
ss b
ilate
ral O
DA
Grants Loans
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ODA Distribution by income group from all donors 2015-16
Least Developed Countries
29%
Other Low Income2%
Lower Middle Income
23%
Upper Middle Income
12%
Unallocated34%
2. Innovative financing to meet the SDGs
The challenge: Shifting the Trillions
The trillions are in the system. However, the inconsistencies must be addressed.
USD 529 billion
USD 149
billion
USD USD 6.1
billion
USD 49
billion
Remittances
ODA
Philanthropicflows
Funds and facilities
*2018 figures are provided where available.
USD 519 billion
USD 4.1 trillion
Tax revenue
FDI
SDG financinggaps
A Call to Action for all Actors
The 2019 Global Outlook on Financing for Sustainable Development provides the full breadth ofOECD work on domestic resource mobilisation, private investment, ODA, remittances,philanthropic flows, etc called upon by Addis to help the poorest achieve sustainabledevelopment.
It sounds the alarm that all actors must work together to successfully implement the call to action.OECD plays a role as “best supporting actor” to the UN system.
Innovative finance requires integratedfinance
Policy makers should consider to adopt a moreinnovative and integrated approach by fixinginconsistencies across resources to finance sustainabledevelopment.
Innovation is needed to support all three pillars:
• Mobilization – unlocking additional resources andestablishing a comprehensive picture of all financialflows available for the SDGs e.g. TOSSD andBlended Finance
• Alignment – improve understanding of how much isaligned with the SDGs and the Paris Agreement. e.g.Transition Finance, SDG labelling
• Impact – a common framework to evaluate andenhance impact, e.g. Social impact investment
Multilateral providers
(MDBs and other IFIs, UN agencies, Other multilateral
organisations)
Bilateral providers
(DAC, other bilateral providers,
South-South, Triangular)
PILLAR ICross-border flows to
TOSSD eligible countries
PILLAR IIGlobal and regional
expenditures for international public
goods and global challenges
TOSSD
ODA
OOF(other official flows)
International Public Goods(e.g. research and peace &
security)
Private finance mobilised
South-South co-operation
Triangular co-operation
Sustainable Development Filter
Sustainable Development Filter
A framework to measure resources in support of Sustainable Development
Private financed mobilised
The TOSSD Framework
Pillar 1: Mobilisation and Blended Finance
The Tri Hita KaranaRoadmap for BlendedFinance increases theeffectiveness andefficiency of blendedfinance operations.
Blended finance can play a critical role in mobilising commercial finance and strengthening financing systems for sustainable development.
OECD DAC Blended Finance Principles for Unlocking Commercial Finance for the Sustainable Development Goals to better design and implement policies and approaches
How can blended finance make a difference in SDG sectors? • Blended Finance in the Least Developed Countries 2019• Making Blended Finance Work for Water and Sanitation 2019 • Blended Finance for agri-SMEs and Smallholder Farmers 2020
Pillar 2: Alignment and Transition Finance
Aligning donor finance in support of country-owned INFF implementation
Pillar 3: Social Impact Investment
.
Four main action areas must be advanced:
1. Financing – ensure no one left behind
2. Innovation – promote experimentation, including in the public sector
3. Data – develop a common framework to assess
4. Policy – advance substantive commitments (voluntary andregulatory)
The OECD is part of the Impact Management Project Structured Network, along with other keystakeholders including UNDP and IFC coordinating efforts to provide standards for impactmeasurement, management and reporting.
The way forward
Together, we could campaign to shift the trillions, bringingfinance in line with our shared agenda and future
The Leading Group on Innovative Financing for Developmentcan play a key role to advance proposals to deliver innovativeand integrated financing approaches that are supportive ofthe UN SG Roadmap for the 2030 Agenda.
“International publicand private financefor development aswell as otherinnovative financingmechanisms,including blendedfinance, can play animportant role inupscaling ourcollective efforts’’- G20 Osaka Leaders’Declaration
Thank you.
For more information visit:http://www.oecd.org/dac/financing-sustainable-development/