Post 2015 EDUGP presentation February 2015

1. FINANCING AND IMPLEMENTING
THE POST-2015 AGENDA
February 2015

2. Major events defining the Post 2015
framework
April 2015 – IMF-WBG Spring Meetings in Washington
July 2015 – Third Financing for Development Conference in
Addis Ababa
Sept 2015 – SDG Summit & United Nations General
Assembly in New York
Oct 2015 – WBG-IMF Annual Meetings in Lima
Dec 2015 – Conference of the Parties of the UN Framework
Convention on Climate Change in Paris

3. Lessons from the MDGs
The odds of achieving the MDGs are improved with growth,
good policies, and capable institutions.
More and better data is needed for monitoring, policy, learning
and accountability.
Finance needs to be substantial, flexible, and efficient.
Effective partnerships can facilitate implementation
Move policy and resources together – “banking with ideas”
“Acceleration” should start from day one: build ownership and
commitment early on; peer monitoring is useful; high level
coordination, e.g. through the CEB helps.

4. The WBG is Ready to Enhance its Partnerships
through Finance and Knowledge
• The WBG is well positioned to implement the SDGs.
• It has just undergone a major transformation that puts in place a
structure that is fully aligned with the implementation
challenges/opportunities of the SDGs.
• On the finance side, the IBRD’s financial “margins for maneuver”
have been overhauled, substantial increases in IDA’s funding,
reformed and aligned trust funds. With the One WBG approach, there
is strong capacity to leverage different sources of finance - we are
getting more effective at doing that with the private sector in particular.
• The newly established Global Practices largely reflect the issue areas
covered by the SDGs.
• More importantly, the emphasis on cross-Practice, i.e. inter-sectoral
linkages, is at the core of the SDG agenda.

5. Proposed Goals and WBG Organization
SDG Issue Areas GPs , CCSAs and other WBG units
Poverty Poverty
Hunger, food security and nutrition Agriculture
Healthy lives Health, Nutrition and Population
Quality education Education
Gender equality and empowerment Gender
Water and sanitation Water
Affordable and sustainable energy Energy and Extractives
Inclusive and sustainable growth and jobs Jobs; Social Protection and Labor
Infrastructure and industrialization Transportation and ICT, Public-Private Partnerships, Trade and
Competitiveness, Finance and Markets
Reduced inequality Poverty, Macroeconomics and Fiscal Management, DEC
Cities and human settlements Urban, Rural and Social Development
Sustainable consumption and production Climate Change
Combat climate change and its impacts Climate Change
Oceans and marine resources Environment and Natural Resources
Terrestrial ecosystems Environment and Natural Resources, Agriculture
Peaceful and inclusive societies, justice, and
institutions
Fragility, Conflict and Violence, Governance
Means of implementation and global partnership Trade and Competitiveness, Macroeconomics and Fiscal Management,
Finance and Markets, DEC Data, OPCS

6. How Will We Meet the Sustainable
Development Goals?
Finance
Data
Implementation
• Household well-being
• Sustainability
• National accounts
• Administrative data systems
• Domestic resource mobilization
• Better and smarter aid
• Better access to finance, PPPs,
bond markets
• FDI, remittances, philanthropic
finance
• Effective institutions
• Effective policies
• Look beyond sector silos

7. FINANCING FOR
DEVELOPMENT
Leveraging WBG financial
resources

8. Financing the SDGs: Context
2002 Monterrey Consensus on the MDGs
Global development cooperation to mobilize and
increase effective use of financial resources to
achieve the Millennium Development Goals
Post-2015 SDGs financing framework will build on:
1) Lessons learned from Monterrey and the MDG
effort
2) Changes in the global economic landscape:
For example:
• Growth of emerging economies
• Increasing role of the private sector
• Climate change

9. Financial Flows to Developing Countries
200
400
600
800
1,000
1,200
1,400
1,600
2001 2003 2005 2007 2009 2011 2013
Chart 1: Financial Flows to Developing Countries
(in billions of USD)
Private Flows
ODA
Remittances

10. The SDG Financing Challenge
Social Challenges
Sustainable
Financing Needs
Global and
Regional Public
Goods
• Poverty
• Hunger, Food Security and Nutrition
• Health
• Education
• Gender
• Water and Sanitation
• Fragility and Conflict
• Energy
• Infrastructure
• Jobs and Growth
• Cities and Human Settlements
• Climate Change
• Oceans, Forests, Biodiversity
• Development data

11. Optimizing Financing for Development
11
Source: Report of the Intergovernmental Committee of Experts on Sustainable Development Financing (2014), United Nations

12. Critical Components of Financing
for Development
1. National public
resources:
Improving domestic resource
mobilization
2. Global public resources: Better and smarter aid/ODA
3. National private
resources:
Unlocking private investment for
development
4. Global private
resources:
Attracting FDI, remittances,
philanthropic finance for development
objectives

13. National public sources:
domestic resource mobilization
OPPORTUNITIES
1)Tax administration
• basic structures (IT support, self-assessment, ethical,
competent staff)
• clear strategies to address non-compliance and key
compliance risks
• performance indicators; strong internal audit/investigation
functions; processes that limit rent-seeking
• Tools have been developed by the UN, MDBs to help
with tax administration reform.
2)Broaden VAT base, improve design,
tackle incentive, evasion issues
3)Clear laws and regulations, protection of
the poorest, regional cooperation
CHALLENGES
1) Non-compliance; "hard-to-tax"
sectors; weak revenue
administration and governance;
challenges of multinational and
state-owned enterprises
2) Flawed design and implementation
of taxes (VAT, corporate income
tax)
3) Extractive industries revenues -
complexity of administration
Domestic revenues are improving in developing countries

14. Mobilizing private sources – National and Global
3
4
6
1
2
Investment Climate
Cross-border Flows and
Bankable Projects
Local capital
markets and
local currency
finance
Effectiveness
of projects
Principles
for
engaging
directly
with the
private
sector
Financial
inclusion through
Domestic financial
sector
5

15. Financing Solutions
Financing for development solutions provide:
(1) Additionality - more money for development needs:
Find and multiply new resources.
(2) Efficiency - structure the money itself better: Having
more money helps, but using it efficiently is critical.
(3) Effectiveness - more development impact for the
money: Financing structures can ensure that money is
used effectively.
Which financing solutions will help us
best leverage available grant funds?
15

16. Global finance solutions
Examples
Instruments
ADDITIONAL - - - - - - - - - - - - - - - - - - - - EFFICIENT - - -- - - - - - - - - - - - - - - - - - - - - - - EFFECTIVE
LEVERAGING POOLING RIGHT-TIMING RISK
MANAGEMENT
RESULTS-BASED
FINANCING
Loan / Guarantee
contributions
Grants/Payments to
address externalities
& incentivize private
sector engagement
Multi-Donor TFs
Procurement
Facilities/using scale to
drive down price
Frontloading
Long-term grants
As-needed: lines of
credit, bridge
financing
Insurance (also a
pooling instrument)
Hedging
Payment for
Results/Pull
Mechanisms
Buy-downs
Advance Market
Commitments
CIF Concessional
Loans
Tailored Subsidies
Equity Investment
IFFIm
AFD Exogenous
Shock LoC
Pledge Guarantee
for Health
GAVI
AccessRH
UNITAID*
CAT DDO/CCRIF
Weather Derivatives
Currency Swaps
Cash-on-delivery Aid
Prize Competitions
Polio Buy-downs
AMC for Vaccines
AgResults

17. GPG Financing
• True global public goods – e.g. knowledge, security, global
commons – should be handled internationally, cooperatively
• GPGs need global cooperation and financial resources: assess
existing institutions and global funds and their potential for
coordination, collaboration, scale up.
• Exercise caution in establishing new “vertical” funds to address
GPGs, since responses to these challenges often require domestic,
systemic and multi-sectoral approaches that respond to specific
national realities.
• Big development challenges mix public-private good and
regional/global issues. Continue to get better at coordinated
public-private support; integrate multilateral approaches with
national strategies and processes, States in the driver’s seat.

18. WBG and the MDBs:
Finance for Development Partners
1) As financial institutions, the MDBs
can finance, innovate, partner,
leverage, mobilize, provide advice
to help achieve the post-2015 SDGs.
2) The MDBs are working together
to serve clients better through joint analytical work, joint and co-
financed projects, collaboration on capacity building, strengthening
country systems.
3) Reorganizations, reforms, new ideas being put in place to
increase effectiveness and efficiency
4) Client-driven focus on financial and development solutions
integrated across sectors and actors

19. Further Work
Spring Meetings Flagship Event on Finance
11 Case Studies on
Financing SDGs :
Joint MDB position paper on FFD, April 2015
Third International Conference on Financing for Development,
Addis Ababa, July 2015

20. DATA FOR
DEVELOPMENT
Rising to the challenge of a data
revolution

21. Context : Looking Back
MDGs triggered greater coherence to capacity
building:
• process provided an impetus to improve national statistical systems to
monitor progress
• As a result, new partnerships & financial instruments created, financial
& technical assistance increased
• Some significant achievements:
• Since 1999, WBG measure of country stat capacity increased from 54 to 68
(2013)
• MDG monitoring improved: 118 countries now monitoring 16 of 22
indicators (was 4 countries in 2003).
• Global Population census initiative led to 98% of population to be counted.

22. Building Statistical Capacity
Strong commitment to work with MDBs and UN to achieve a
leap forward in the quality and availability of information
used for decision making.
• Improvements in the number, quality and reach of
traditional statistical systems
• Supporting the use of data for action and accountability.
See Attachments 3 for more on:
• MoU on Statistical Capacity Building
• Action Plan for Statistical Capacity Building

23. Context : More recently
Revised WBG strategy and SDG process re-energized the
data agenda
• WBG twin goals require better data for monitoring corporate priorities
• 29 countries had no poverty data point for a ten year interval (between 2002 and
2011)
• Shared prosperity are data available for only 86 countries (for circa 2006-11)
• SDGs recognize more and better data needed for the development agenda
through 2030
• High-level Panel call for a “Data Revolution” (May 2013)
• Independent Advisory Group on the Data Revolution created to inform the SDG
process (November 2014)
New technologies are leading to an exponential increase in
the volume and types of data available
• 90% of data produced in last two years, but unequal data production and use
between rich and developing countries.
• Most of this data produced/captured by the private sector (Cell phone
records, social networks, internet searches, etc.

24. WBG Signals Greater Support
Commitment to improving data is strong, e.g.:
• President’s commitment (April 2014)
• Key theme of WBG support for post 2015 (Sept 2014).
• Development Committee Communique (Oct 2014)
• Participation in the UN expert group on data revolution
(Oct 2014)
• WBG Data Council established (Oct 2014)
In addition:
• MDBs and UN are also stepping up – Signed MoU on
Cooperation on Statistical Activities (April 2013)

25. WBG actions
Identify and fill key data gaps for twin goals and diagnostics
Work smarter:
• WBG to coordinate and mobilize financing and technical assistance
with others
• MOU in place with the UN, IMF, and other MDBs
Fund smarter:
• Develop models that crowds in domestic resources & focuses on
results
• Incentivize private sector partnership to find innovative ways to
produce and use these new data sources
• Initiatives to be ready for UN Financing for Development Conference (July 2015)
• Work with donors to collaborate on funding for gaps already
identified
• Household surveys, economic statistics, civil registrations

26. Building Statistical Capacity: An Agenda for
Action
Accelerates progress on open data, NSDS, and “thorny problems” (e.g.,
rebasing GDP, data validation) at the national level.
Supports innovative approaches to data collection and collaborations
between public and private sectors.
Develops new partnerships and financing facility.
Influences SDGs to ensure clear metrics, and FFD Conference to
advocate adequate investment.
Convenes a World Forum on Development Data to secure a “data
compact” with business, NGOs, and governments, and an annual event
to track commitments.

27. IMPLEMENTATION
Developing integrated solutions

28. Issues to Consider for Implementation
For effective implementation one needs:
• Effective institutions
• Effective policies
• Financing
• Look beyond sector silos
Issues to consider:
• Longer term strategies of practices and regions?
• Monitoring of progress and policies and institutions, e.g. GMR
and corporate scorecard, CPIA?
• Country analytics, e.g. Systematic Country Diagnostic and
Partnership Strategy to help set priorities and help with
sequencing of actions?
• Financing, e.g., new instruments, IDA?

29. ANNEXES

30. Annex 1: OWG Report
Goals
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition, and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote life-long learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable, and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and
decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its impacts*
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests,
combat desertification, and halt and reverse land degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all
and build effective, accountable and inclusive institutions at all levels
17. Strengthen the means of implementation and revitalize the global partnership for sustainable
development
Full report: http://sustainabledevelopment.un.org/focussdgs.html

31. Annex 2: Intergovernmental Committee of
Experts on Sustainable Development Financing
Funds Flows Indicative Targeting