There is an annual financing gap of $2.5 trillion needed to fund infrastructure, food security, climate adaptation and mitigation, health, and education in developing countries as achieving the SDGs requires $5-7 trillion per year globally. Domestic sources like taxes, credit, and remittances currently provide $7.8 trillion for developing countries while official development assistance grants provide just $178 billion. Closing this $2.5 trillion gap will require increased investment from both public and private sources.
An Atoll Futures Research Institute? Presentation for CANCC
Our SDGs Future: Shared Future, Shared Goals
1.
2.
3.
4. Financing the SDGs
Intergovernmental
Committee of Experts on
Sustainable
Development Financing
(ICESDF)
United Nations Conference
on Trade and Development
(UNCTAD) Financing
Gap Jobs
Achieving the SDGs
in all countries will
require additional
global investments
in the range of $5
trillion to $7 trillion
per year up to 2030
Developing countries will
need between $3.3 trillion
and $4.5 trillion a year in
financing for: basic
infrastructure (roads, rail and
ports; power stations;
water and sanitation),
food security, climate change
mitigation and
adaptation,health and
education
There will be an
annual financing
gap of $2.5 trillion
for aforesaid five
areas (about 3.2%
of world GDP) at
current levels of
public and private
investment
5. Relative Sizes of
Development Finance
(Nominal Figures, Philippine Pesos)
Domestic Credit
Tax and
Non-Tax
Revenues
Cash
Remittances
FDI
(Net inflows)Net
Domestic
Borrowing
Project and
Program
LoansGrantsNet
Foreign
Borrowing
7.8T
2.1T
2.1T
513B
1.2T
303B
265B
65B
100B
25B
178B
119B
164M
1.4B58.5B
-35.4B
2000 2015
23. Inclusive Business Model: Water for the Barangays
Inclusive Business
1.8 M
served
20x
cheaper than
vended water
decrease in
diarrhea cases
(1997-2008)51%
99%
24hr
access
$500k
in new jobs
benefitting
850 families
74%
No water
service
No 24/7 access to
water supply
No sewerage
system
illegal connections and/or
vended water
Cost of vended water:
up to 16 times above tariffs
Manila’s East Zone before
Manila Water (pre 1997)
42%
97%
Results:
LGUs, CBOs, communities and INGOs
Investments
(2004-2009)
51%
Million
$351.85
lower fees
and flexible
payment
terms
Source: Incite and Philippine Business for the Environment
