Transcript Presentation Andrew Rogerson - Overseas Development Institute

Financing the post-2015 Sustainable Development Goals:
a Rough Road-Map
Andrew Rogerson Senior Research Associate
13th November 2014
Finance flows and development goals
Concessional
Public Finance
Infrastructure
for
sustainable
development
3
Market-Related
Public Borrowing
Private Finance
Basic needs
and social
progress
Global
public
goods
Kharas, Prizzon and Rogerson, 2014 forthcoming "Financing the post-2015 SDG: a Rough Roadmap
30
The Missing Middle:
International flows fall faster than tax revenues rise
$4,000 $12,000
0
10
% GDP
20
$1,000
6
8
10
12
GDP per capita (log)
Total
ODA and OOF
4
Tax revenues
Kharas, Prizzon and Rogerson, 2014 forthcoming "Financing the post-2015 SDG: a Rough Roadmap”
Top-line recommendations
 Prioritise grant assistance to the least creditworthy, lowest fiscal capacity and
most vulnerable countries.
 Within these countries, crowd in private actors via rule-of-law support and
partnerships.
 Mobilise much more market-related public finance and encourage leverage of
private finance in specific thematic areas.
 Finance international public assistance for mitigation mainly on market-related
terms, to minimise allocation distortions. Target adaptation aid on LDCs/SIDS
5
Kharas, Prizzon and Rogerson, 2014 forthcoming "Financing the post-2015 SDG: a Rough Roadmap
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The views presented here are those of the speaker, and do not
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Overseas Development Institute
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Market Aid Index
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
ODA
7
OOF
Kharas, Prizzon and Rogerson, 2014 forthcoming "Financing the post-2015 SDG: a Rough Roadmap
Other Recommendations (1)
Topic
1. Boost market-related lending by
MDBs
2. Boost access to market-related
public finance more generally
9
Recommendation
A. Review demand for non-concessional
MDB financing
B. Leverage receivables of concessional
windows
C. Smoothen graduation to market-related
funding
D. Improve competitiveness of MDB
delivery
A. Agree on a new international indicator
for “official finance” (OF)
B. Set a new international target for OF
Kharas, Prizzon and Rogerson, 2014 forthcoming "Financing the post-2015 SDG: a Rough Roadmap”
Other Recommendations (2)
Topic
3. Incentivize private finance and
align it with development
objectives
4. Minimize allocation distortions
inherent in public climate
mitigation finance
10
Recommendation
A. Establish basic metrics for private
finance for development (PFFD)
B. Recognise undisbursed official
guarantees and other contingent finance
A. Finance mitigation mainly on marketrelated loan terms, with grants reserved
for demonstration programmes in less
creditworthy countries
B. Establish a target of 50% for the share
of concessional assistance for adaptation
going to LDCs and SIDS
Kharas, Prizzon and Rogerson, 2014 forthcoming "Financing the post-2015 SDG: a Rough Roadmap