Tag: SDGs

Development finance, SDGs

New Approaches to Scaling Private Sector Funding for Sustainable Development

By Sonja Gibbs, Managing Director & Head of Sustainable Finance, IIF

This blog is part of the
OECD Private Finance for Sustainable Development Conference

Welcome to 2020–the “Decade of Delivery” for the 2030 Sustainable Development Goals (SDGs). While the international development community remains hard at work on solutions, success over the next decade will require addressing an “SDG financing gap” of $5-7 trillion per year, with emerging markets making up $2.5-3 trillion of that.  This will create tremendous opportunities for the private sector across the spectrum of investment vehicles—including foreign direct investment, listed and unlisted equity and private equity, in addition to the wide variety of debt instruments.  Indeed, given the massive buildup of debt over the past two decades—to over 320% of global GDP, from around 230% in 1999—a shift towards more non-debt financing could be a more sustainable approach to closing the gap.

With fewer than 10 years left to achieve the SDGs, many low-income countries remain very far off-target. At slightly above 50, the low-income countries median on the composite SDG index—which measures country-level performance in achieving the SDGs—remains well below that of either mature or emerging markets (though there is substantial variance among low-income countries). Continue reading “New Approaches to Scaling Private Sector Funding for Sustainable Development”

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Development finance, SDGs

Shifting public and private finance towards the Sustainable Development Goals 

By Paul Horrocks, Priscilla Boiardi and Valentina Bellesi, OECD Development Co-operation Directorate 

This blog is part of the OECD Private Finance for Sustainable Development Conference

dev-cooperation-puzzle-handBack in 2015, the international community committed to a shared global vision towards sustainable development – the 2030 Agenda – including 17 Sustainable Development Goals (SDGs).

The Goals identify the areas in which resources are most needed. But with the realisation that meeting the Goals by 2030 would require filling an annual financing gap of 2.5 trillion dollars, the Addis Ababa Action Agenda (AAAA) called upon a broader mobilisation of resources, including private ones.

Five years on, progress remains slow and uneven.

Three critical questions emerge from this context: How can we drive more resources towards the Goals? How can we make sure they are going where they are needed most?

And are they being used in the most effective way?

In order to guide the answers to those questions, we propose a three-step approach: Mobilisation, Alignment and Impact. Continue reading “Shifting public and private finance towards the Sustainable Development Goals “

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Policy, SDGs

Helping Cities and Regions achieve the SDGs: Partnering for Decentralised Development Co-operation

By Jorge Moreira da Silva, Director, OECD Development Co-operation Directorate and Lamia Kamal-Chaoui, Director, Centre for Entrepreneurship, SMEs, Regions and Cities (CFE)

 

UrbanisationAll too often international aid is viewed through the traditional lens of nation states. A rich-poor relationship of a developed country providing a one-way flow of financial assistance to a developing country to address crucial development issues, whether they are societal, economic or environmental in nature. However, the impact of these problems is acutely felt at the local level and requires global collaborative responses at the subnational level. Decentralised development co-operation (DDC) – the exchange of resources between subnational governments in developed and developing countries – offers a pragmatic and effective approach to addressing the most critical issues and to achieving the sustainable development goals.

Following the onset of the Syrian crisis, Lebanon has had to provide adequate housing and basic services to over one million refugees, or nearly 20% of the world’s total Syrian refugee population.[1] At the forefront of this daunting task are municipalities, which in most instances critically lack the resources and funding to deliver. Continue reading “Helping Cities and Regions achieve the SDGs: Partnering for Decentralised Development Co-operation”

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Data, SDGs

Counting the invisible: Three priorities for strengthening statistical capacities in the SDG era

By Johannes Jütting, Executive Head PARIS21, Rolando Avendano, Economist, Asian Development Bank and Manuel Kuhm, Research Support Officer (PARIS21)

markus-spiske-unsplash.jpg

Better policies need better data. High-quality data and official statistics are vital for governments, civil society, the private sector and the public to make informed decisions, create effective polices, and establish good governance. Under the 2030 Agenda for Sustainable Development, data-driven policy making takes on even greater significance. For if we are to “leave no one behind”, we must first ensure that everyone is counted.

Yet today, more than 110 low and middle-income countries lack functional civil registration and vital statistics systems and under-record or omit vital events of specific populations. Those living in poverty are most likely to be excluded—the poorest 20% of the global population account for 55% of unregistered births. Only 37 countries have statistical legislation that complies with the United Nations (UN) Fundamental Principles of Official Statistics.

If we don’t even know who the poorest are, how can we ensure that they aren’t left behind?

At the same time, while a global Sustainable Development Goal (SDG) indicator framework is an essential part of Agenda 2030, it is putting pressure on national statistical systems. In addition to the demand of compiling 232 national-level indicators, the Agenda requires that data are disaggregated by income, sex and gender, geography, age and disability, far beyond current capacity in many developing countries. Continue reading “Counting the invisible: Three priorities for strengthening statistical capacities in the SDG era”

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Policy

How the public sector can support sustainable business

LJD

By Frederique Mestre, Senior Legal Officer, UNIDROIT

This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre

Development-Finance-shutterstock_524218915How can we ensure economic development while advancing social and environmental objectives? How can we promote sustainable growth – a concept that in today’s real world may sound like an oxymoron? These questions are at the core of governments’ concerns at a time when the planet and humanity are faced with greater and more pressing challenges than ever before.

The Sustainable Development Goals (SDGs) are a milestone amongst the many political and legal instruments forming global standards, policies and procedures adopted by the international community for a more sustainable planet. The SDGs call for action to respond to social and environmental challenges. They outline obligations for governments toward their citizens to promote political and social cohesion and a responsibility for them toward future generations to advance long-term sustainable ecosystems.1

In this context, governments should be responsive to virtuous stakeholder initiatives and support them with enabling policies and appropriate legal and regulatory frameworks. And one such stakeholder that can’t be overlooked is the private sector. Recognised as a major driver of productivity, inclusive economic growth and job creation, the private sector has an essential role to play in contributing to sustainable development.2 Continue reading “How the public sector can support sustainable business”

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Policy, SDGs

The role of fiscal policies for sustainability

LJD

By Karen B. Brown, Theodore Rinehart Professor of Business Law, George Washington University Law School

This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre.

development-financeSustainable enterprises seek to marry models for good business practices with principles of economic, social and environmental sustainability, many of which are founded on the United Nations Sustainable Development Goals (SDGs). These objectives aim to advance human rights, fair wages, healthier and safer working conditions, gender equality, child welfare, environmental protections, and ethical behavior designed to impede corruption, money laundering and tax evasion. The failure to achieve these objectives imposes considerable costs on governments: diminished productivity and quality of life for their constituents, inefficiency in the operation of markets, and reduced economic growth. An important step towards achieving sustainability goals may come through a government’s use of incentives in the fiscal regime.

Governments traditionally use their tax codes to make “tax expenditures” designed to achieve objectives that advance important policy goals or principles. For example, a government may provide a departure from normal tax rules by reducing the capital gains tax and deferring the time for when gains must be reported if a taxpayer invests in certain qualified opportunity zones that are designated low-income communities. In other words, the government is willing to forego the capital gains tax revenue it would otherwise collect in exchange for investment intended to stimulate economic growth in areas where underserved constituents reside. Other examples abound of using tax expenditures to achieve legitimate governmental ends. Consider the following three ways — substantive tax provisions, tax rate reductions and “bright listing ”– that use incentives to encourage the integration of human-centred goals into business practices: Continue reading “The role of fiscal policies for sustainability”

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Policy, SDGs, SME

SMEs and SDGs: challenges and opportunities

LJD

By Dr Teodorina Lessidrenska, Consultant, World Bank

Recent studies show that small and medium enterprises (SMEs) account for an overwhelming majority of private sector business and economic activity in both developed and developing countries. Given the role of micro-, small- and medium-sized enterprises (MSMEs)1 in the global economy, it is essential to understand their importance and potential contribution to the Sustainable Development Goals (SDGs)2. 

According to the World Bank3 and the OECD4, multiple reasons explain why MSME development is critical for achieving the SDGs:

Continue reading “SMEs and SDGs: challenges and opportunities”
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Policy, Private Sector

Creating value and doing good: Governance solutions for sustainable enterprises

LJD

By Professor Andrea Zorzi, University of Florence

This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre.

BWO_038

Charitable institutions are an established concept. So is the concept of cooperatives that advance some social goals through business activities. What is relatively new, however, are two related ideas: one is the idea that the pursuit of social goals is the business itself, and the other that the business pursuit of social goals does not mean giving up profits.

In the past decade, many initiatives burgeoned to give legal form to social business. It was necessary before to adapt the legal structures of for-profit companies to not-only-for-profit goals. Adapted standards, however, may not always be effective or may expose entities to legal risks. Now, many jurisdictions provide legal forms for ‘social enterprises’, which are generally expected to pursue only ‘social, environmental or community objectives’, rather than both for- and not-for-profit goals and to reinvest most of their profits.[1] The most important difference between social enterprises and other non-profits is that social goals are pursued by carrying out the business rather than giving out money, goods and services to the needy.
Continue reading “Creating value and doing good: Governance solutions for sustainable enterprises”

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Private Sector

Transforming the Businesses that are Transforming our World

LJD

By Dr Isabella D. Bunn, Research Fellow in Governance and Global Ethics, Regent’s Park College, University of Oxford

This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre.

 

Mario-KantsukeThe 2030 Agenda for Sustainable Development – under the banner of transforming our world – is a call to action. All countries and all stakeholders are invited to implement this agenda, including the private sector. In fact, the 2030 Agenda acknowledges that ‘’private business activity, investment and innovation are major drivers of productivity, inclusive economic growth and job creation. We call on all businesses to apply their creativity and innovation to solving sustainable development challenges’’ [§67].

But, how is business responding? Around the world, companies of all sizes and sectors are forging new strategies and collaborations to help realise the SDGs. Organisations such as the UN Global Compact and the World Business Council for Sustainable Development offer practical guidance. The UN Development Programme identifies potential projects through its “Business Call to Action.” Multiple institutions are shaping mechanisms for green finance. Further impetus comes from the business case for the SDGs; the Business and Sustainable Development Commission confirms the multi-trillion dollar scale of this opportunity.

The scope of private sector actions, bolstered by diverse partnerships, is impressive. Yet, advancing sustainable development will depend on more than what business might do. It will also depend on what business might become. Thus, the real opportunity is for policy makers, business leaders and other stakeholders to leverage the 2030 Agenda to create lasting change within the private sector itself. Consider the following five themes as potential leverage points for change. Continue reading “Transforming the Businesses that are Transforming our World”

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SDGs

The role of philanthropy for the SDGs is not what you expect

By Benjamin Bellegy, Executive Director, Worldwide Initiatives for Grantmaker Support (WINGS); Michael Mapstone, Director of International, Charities Aid Foundation (CAF); and Lorenzo Pavone, Deputy Head of Networks, Partnerships and Gender Unit, OECD Development Centre

philanthropy-SDGsWhat will philanthropy do to get the world closer to the Sustainable Development Goals (SDGs) by 2030?

When doctors see symptoms that are associated with common ailments, they are told to think that a typical disease, not an exotic one, is the cause. If a child arrives to a clinic with a fever, doctors first look for a common infection that could explain the symptoms, not Kawasaki. The general thinking is that the most likely explanation is often the correct one. When you hear hooves, for example, think that a regular horse is nearby, not a zebra. What does this have to do with philanthropy and development?

To many, philanthropy is a welcome source of funding for development programmes across the world. The size of philanthropic funds heading to developing countries is anything but trivial and has increased markedly over time: Recent OECD estimates show that philanthropy for development between 2013 and 2015 was around USD 8 billion a year, most of it directed towards health and reproductive health programmes, but also sectors like education and agriculture. The Foundation Center finds similar results for US foundations, estimating international giving at an average of USD 7.5 billion for the same period. Moreover, measures of generosity are increasing on a global scale, particularly in Africa according to the World Giving Index; with the expansion of the global middle class, the possibility for domestic philanthropy to play an even larger role in development is becoming even more salient. These sizable private resources are tackling social issues that other private international flows, like private investment, often can’t reach or aren’t interested in doing so. Because of all this, many are beginning to see philanthropy as a key financing source that could help close the SDG funding gap, estimated at USD 2.5 trillion up until 2030. Continue reading “The role of philanthropy for the SDGs is not what you expect”

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