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WHERE IS THE

MONEY?

Financing Sustainable
Development

nuradha Rajivan

sian Development Bank

An Inequality Crisis is receiving


global attention:
Fault lines from systemic disparities - by design
WEF: Gap between the richest and the rest got
aired; CO2 consumption of the top 1% 175
times that of the poorest
Inequality is cumulative and cross-generational
economic wealth, political power, social status
overlap
Elites know that extreme inequality and
democracy may not co-exist for long
The SDGs are one attempt to redress extreme
disparities to change how money is applied
for more durable benefits

Capital

Cohesion

Capacity

Collaboration

Capital

Cohesion

Capacity

Collaboratio
n

Capital

HIGH AMBITIONS, FRAGMENTED FINANCE


In this region of savers it is less a challenge of
funds, more one of finance

Capital

LIC IL
B
U
P
IB
S
N
PO
RES ITY

MDB
Role

ATE
V
I
PR
SE
N
O
P
RES

BUT THIS WONT HAPPEN BY ITSELF:


HERE ARE CHALLENGES TO BE
OVERCOME
Bulk of the funds are in private
hands, dispersed
Money is invested elsewhere, in
richer countries, not in locations
most in need
Not directly programmable, unlike
ODA
SD investments are riskier, longerterm, less profitable
Long term funds yet to be unlocked

Capital

Cohesion

Capacit
y
Collaboratio
n

Capacity

CAPACITY IS THE OTHER SIDE OF THE COIN


Pumping money alone is not sufficient
Destinations for finance must be attractive to
draw-in fundsAbsorptive capacity
Quality of project
design
Clearer alignment of
funds with SDGs
(results)
Better risk
management
Front-ending,
leverage
Policy,

Capacity

CAPACITY MATTERS TO ALL


To make best use of all sources of funds

National governments, public institutions Manage contracts, assess


risks and rewards of new kinds of partnerships
Sub national, parastatals, municipalities Prepare and qualify for new
financing options (debt markets, muni bonds)
Corporates Build new skills to re-orient profit models around sustainability
aims
Investment funds Shape awareness and expertise to incorporate social
purpose in investments
Civil society, think tanks Informed dialogue, help incentivise all monies
towards development

Capital

Cohesio
n

Capacity

Collaboration

A Starting Point for an Integrated Response


SDGs provide a network of targets with interlinking
opportunities for
ECONOMIC PROSPERITY + SOCIAL EQUITY +
ENVIRONMENTAL RESPONSIBILITY
HELP US TO BE ON THE SAME
PAGE, A SHARED
FRAMEWORK TO:

Cohesion

Respond better to
country-customized
plans
Identify new investment
opportunities
Spot projects to be
phased out

Source: UN DESA, Towards integration at last? The sustainable development goals as


a network of targets, Working Paper No. 141

Capital

Cohesion

Capacity

Collaboration

Collaboration

NO ONE CAN DO IT ALONE


Explore Collaborations for Systemic Alignment with Sustainable
Development
Formalized and non-formal
arrangements
Shared perspectives across influencers
and
decisionbilateral,
makers
Global,
sub-regional

collaborations
Tax havens, transfer pricing
Cross border mobility
Common markets
Environmental responsibilities
Data and monitoring

COLLABORATION IS KEY FOR ISSUES THAT CAN ONLY BE


PARTIALLY ADDRESSED NATIONALLY

Collaboration

PARTNERSHIPS FOR SUSTAINABLE DEVELOPMENT


Public, Private

PUBLIC, PRIVATE
PPP Models - Understand what has worked and what has not; government
shifts role from sole funder and operator to focus on facilitation, regulation and
accountability
Steering Private Resources - Management of natural resources; Trade
finance
National Development Banks Sector development
Private Transactions Providing Public Benefits - Carbon Pricing;
Financial Transaction Tax
# BUSINESSES, THINK TANKS, CIVIL SOCIETY: PUBLIC AND PRIVATE
Develop benchmarks/dashboard, principles and indicators , for private money
for sustainable development investments (currently only ODA is assessed)
# MULTILATERALS, OTHER PARTNERS
Improve support for results in contrast with bigger investment size
Sector development, capacity for projects vis--vis direct projects

Capital

Asia has the funds,


but dispersed,
invested elsewhere
Leverage
Public
responsibility
Private Response

Capacity
THE 4 Cs TO BRING IN MONEY TO THE
THREE PILLARS OF SUSTAINABLE
DEVELOPMENT

Economic Prosperity
Environmental Responsibility
Social Equity

Pumping not
enough
Make
destinations of
finance attractive
too

Cohesion

Partnerships at
all levels connect
perspectives public and

Interlink SDGs
for a
monitored,
durable
response

Collaboration

Should we

Consume more or invest more?


Pay fair wages before high dividends?
Share tax burden in a progressive way and
close loopholes?
Question aggregate GDP as the main
measure of human progress?
Channel longterm savings into longterm
investments?

In the long
run we may
all be dead
But not all at
the same
time
It is up to us
to make