Development Finance Impact Project

Financing for development in developing countries

Project aimMy Target group is anyone who interest in and

desire to participate increase understanding of development finance for developing countries especial for Low - income. 

Need to understand the fundamental concept of development concept, the source of funding and the role of finance in supporting the new sustainable development for achieving the sustainable development goal. 

This project  focuses on the supporting and achievement of the Sustainable Development Goals and development in general.

What is SDGs?Sustaiable development goals SDGs is the

opportunity to adopt a set of goals to end poverty, protect the planet, and ensure prosperity for all as part of a new sustainable development agenda.

Each goal has specific targets to be achieved

over the next 15 years. For the goals to be reached, everyone needs to do their part: governments, the private sector, civil society and people like you and me.

Type of SGDs

What are the constraint financing the SGDs?

Ease of tax administartion

Weak capacity for implementation

Trying to get effective and efffiecent tax policy

GDP to tax ration is remaining low

The SDGs therefore require a massive step up in domestic resource mobilisation

What is ODA? Official development assistance (ODA) is a term coined by the

Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) to measure aid. The DAC first used the term in 1969. It is widely used as an indicator of international aid flow.

ODA are official flows to or for developing countries that are provided: for developmental purposes

by the official sector (Government, public funds)

as grants or “soft loans” (ODA loans are at terms significantly softer than commercial transactions, and bear a “grant element” of at least 25% compared with a loan at 10%.)

It can play a catalytic role and bring in other sources of finance, it is concessional , it’s help fill the finance gaps.

The financing for development approach

The financing for development approach that we want to take is that we need to focus both on more financing and on effective financing. It's more money and smarter money to reach the SDGs. That development needs to be economically, socially and environmentally sustainable.

we are all stakeholders in the finance for development agenda.

The challenges of mobilizing the financing resources needed to help meet the SDGs.

Domestic resource mobilization has significant potential to finance development.

Domestic resources mobilization Limitation in Developing countries

Governance is an important constraint on resource mobilization in developing countries

Domestic resource mobilization is constrained by institutional weaknesses and political weaknesses and became governance problems

CorruptionAbsence of risk-sharing institutions prevents

investment in many potentially profitable sectors in developing countries

Improving the Domestic public Resources Improving good governance and fighting corruption Improve better tax policies, improve administration

and improving public expenditure efficiencyThrough a combination of tax policy and tax

administration effortsChange technology and practice to improve

collaboration and cooperationgood governance conditions can be achieved savers

will feel confident to save, investors to invest, and both will be served by accountable governments providing public goods

Improving the Domestic public Resources ( contd.)

Raising the revenue fairly and equitablyEnsure that when revenue is spent it leads to

improve service ( school, education, health etc.)Reduce remittance cost.Improving the investment climateReduce red tape impediments to doing business.Creat a new era of public private can

collaboration.Do blend finance.

Improving the Domestic public Resources ( contd.)

Rules of Law in PlaceIncentive for foreigne investorNeed more citizen voiceReducing Illicit financial flowImproves TransparencyA government unit needs to be responsible

for implementation, mornitoring and accountablitiy.

ConclusionSustainable development goals can not be achive in

developing countries without very sustainable mobliziation of domestic resources.

Importance of shifting production and comsumption patterns towards more sustaiable model.

By doing better investment climates, better tax collection, more efficient public funding with Multilateral Development Bank, Asia Development Bank and European Invesment Bank to reach the global goal.

Working with Global and regional partner.

resources

http://www.theguardian.com/global-development/2015/jan/19/sustainable-development-goals-united-nations

http://www.eurodad.org/files/pdf/552fab5135867.pdf

http://www.worldbank.org/mdgs/documents/FfD-MDB-Contributions-July-13-2015.pdf

https://class.coursera.org/fin4devmooc-001/wiki/Week_2_Video_Talks

December 2015