3. 3
1. Finance
Paradigm shift - move the discussion
from âbillionsâ to âtrillionsâ
Financing will have to come from
multiple sources: governments and
philanthropy, remittances, South-
South flows, other ODA, and FDI
Two main pillars: public domestic
resources and private sector finance
Source: World Investment Report, UNCTAD, 2018
4. 4
1. Maximizing Finance for
Development
⢠The World Bank Groupâs crucial effort to redefine our
approach to development finance: leveraging the
private sector in ways that optimize the use of scarce
public resources
⢠It is nearly impossible to meet the SDGs by relying on
public funding alone
⢠The private sector can play a much bigger role in
socially and environmentally responsible
development, both as an investor and as a source of
innovation and expertise
7. 7
"Business leaders need to strike out in new
directions to embrace more sustainable and
inclusive economic models."
"Big business and finance
need to regain public
trust."
âMore than 150 million children are
working unseen and unprotected.â
"The Global Goals could deliver 380
million new jobs in business."
âThere is the chance to rebuild
trust between business and wider
society.â
Source: Business Commission, 2017
2. Business and Sustainable Development
8. 8
2. SDGs Present Enormous Business Opportunity
Source: CEO Guide to the Sustainable Development Goals, World Business Council For Sustainable Development (WBCSD) Source: Business Commission, 2017
Sustainable development:
⢠Opens up new opportunities and big efficiency gains
⢠Drives innovation
⢠Enhances reputations
With a reputation for sustainabilityâŚ
⢠Companies attract and retain employees, consumers,
B2B customers and investors
⢠Companies secure their license to operate
⢠Companies thrive and deliver attractive returns to
shareholders
9. 9Source: Business Commission, 2017
⢠Asia is particularly well placed to
reap the collective benefits
⢠More than 40% of the US$12
trillion in business opportunities
associated with the SDGs around
the world are in Asia
* Rest of developing Asia includes
Central Asia (e.g., Uzbekistan), South
Asia (e.g., Bangladesh), Southeast Asia
(e.g., Laos), and North Korea.
2. More than 50% of Opportunities
are in Developing Countries
10. 10
2.WBGâs Operating Principles for Impact Investment
Strategic
intent
1. Define strategic
impact objectives
consistent with the
investment strategy
2. Manage strategic
impact and financial
returns at portfolio
level
Origination &
Structuring
3. Establish the investorâs
contribution to the
achievement of impact
4. Assess the expected impact
of each investment, based on a
systematic approach
5. Assess, address, monitor
and manage the potential risks
of negative effects of each
investment
Portfolio
management
6. Monitor the progress
of each investment in
achieving impact against
expectations and respond
appropriately
Independent verification
9. Publicly disclose alignment with the principles and provide regular independent verification of the extent of alignment
Impact
at
exit
7. Conduct exits,
considering the effect on
sustained impact
8. Review, document and
improve decisions and
processes based on the
achievement of impact and
lessons learned
11. ⢠Closing the gender gap could increase GDP by
an average of 35%
A bigger boost to
growth
⢠Increased labor force participation
⢠Gender diversity increases productivity and
potential for innovation
Higher
productivity
⢠Menâs wages will also increase as a result of
greater inclusion of women in the labor force
since productivity will increase
⢠Equality can add $12 trillion to global growth
11
2. Gender Equality and Sustainable Development
Higher male
incomes
A bigger payoff
Sources: IMF, 2018, McKinsey 2015
12. 12
3. Invest in Human Capital
⢠The World Bank Groupâs Human Capital
Project is a global effort to accelerate more
and better investments in people for
greater equity and economic growth.
⢠The cost of inaction on human capital
development is going up.
⢠HCP is expected to help create the political
space for national leaders to prioritize
transformational human capital
investments.
13. 13
3. Human Capital Index was
launched in 2018
Launched in 2018, the HCP assesses Building
blocks of human capital:
⢠Survival â Will kids born today survive to
school age?
⢠School â How much school will they
complete and how much will they learn?
⢠Health â Will kids leave school in good
health and be ready for further learning
and/or work?
14. 14
3. Invest in Resilience
Ability to manage the wide range of
shocks and stresses which may occur
⢠natural
⢠technological or
⢠socioeconomic
Examples of investments include:
⢠Expansion of social protection coverage while
giving priority to the poorest people
⢠Strengthening of all aspects of climate and
disaster resilient development, including
coordinating institutions, risk identification and
reduction, preparedness, financial and social
protection, and resilient reconstruction
15. 15
3. Invest in Infrastructure
1E+11
1.5E+11
2E+11
2.5E+11
3E+11
3.5E+11
4E+11
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Infrastructure Outlook: Africa
Current trends
Investment need
Investment need inc. SDGs
1.3E+12
1.5E+12
1.7E+12
1.9E+12
2.1E+12
2.3E+12
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Infrastructure Outlook: Asia
Current trends
Investment need
Investment need inc. SDGs
Source: Global Infrastructure Hub, 2018
16. 16
3. Invest in Digital Infrastructure: Three Bâs of Technology
Build
ď Develop the foundational building blocks for sustainable, technology-
led economies (for example, the Digital Economy for Africa Initiative,
and Identification for Development).
Boost
ď Expand the capacity of people and institutions to thrive in a resilient
society in the face of disruption (for example, ongoing citizen
engagement).
Broker
ď Harness disruptive technology, data, and expertise to solve
development challenges and manage risks through collaborations
(for example, with partners including Airbnb, Amazon and LinkedIn).
17. Mahmoud Mohieldin
Senior Vice President
World Bank Group
worldbank.org/sdgs
Follow us on twitter @WBG2030
Mahmoud Mohieldin on
March 15, 2019
Hinweis der Redaktion
Investments of all kinds: public and private, national and global, in both capital and capacity.
Public domestic resources, where the most substantial development spending happens, and private sector finance and investment, the largest potential source of additional funding.
A comment on the private sector window: Recognizing the critical role of the private sector in achieving the SDGs, the 18th replenishment of the International Development Association (IDA) â the World Bankâs fund for the poorest â for the period 2017-2020 includes for the first time a private sector window to promote blended financing of development projects. The World Bank also partnered with BNP Paribas to launch a set of equity-index linked World Bank bonds, in which the index is based on companies selected for their SDG alignment.
Public financing is scarce.
In order to maximize the best use of public financing, the World Bank Group has begun to implement the Cascade. This means that for every project being considered for financing, WBG staff will first review all possible sources of financing in order to ensure that scarce public resources for the best uses
How were the Principles developed? The Principles were developed by the International Finance Corporation (IFC), drawing on its own impact management practices, and consulting with a range of asset owners, asset managers, asset allocators, multilateral development banks (MDBs), and development finance institutions (DFIs), including the collaborating institutions listed in this guide.
The Principles draw on emerging best practices across a range of public and private institutions that are investing for impact. These include MDBs and DFIs that have both financial and development impact objectives, and decades of experience investing for impact in emerging markets. The Principles also draw on the more recent experience of specialist impact funds and asset managers that have developed robust impact management systems. In addition, they build on industry-wide initiatives around impact management, including the Impact Management Project (IMP).
How can the Principles be used, and by whom? The Principles are intended to be a reference point for investors for the design and implementation of their impact management systems. They may be implemented through different types of systems, which are designed to be fit for purpose for different types of institutions and funds. They do not prescribe specific tools and approaches, or specific impact measurement frameworks. They do not provide guidance on how they are to be implemented. The ambition is that industry participants will continue to learn from each other as they implement the Principles.
Each asset owner and asset manager would align their management systems to the Principles. However, the manner in which the Principles are applied will differ by type of investor and institution. Asset owners and asset managers may apply the Principles to the relevant parts of their portfolios. For example, asset owners and their advisors may use the Principles to screen impact investment opportunities. Asset managers and their advisors may use the Principles to assure investors that impact funds are managed in a robust fashion.
Human capital is a key driver of economic growth and development and it is critical for the private sector to scale up business in developing countries. Investing in people through nutrition, quality health care, education, jobs and skills helps develop human capital.
Over the past decades, we have achieved historic human development gains, but a massive gap still remains:
- Nearly a quarter of all young children are stunted,
- Half of the worldâs population cannot access essential health services, and
- A learning crisis is holding many countries back.
There is mounting evidence that without strengthening human capital, countries cannot sustain economic growth, will not have a workforce prepared for more highly skilled jobs of the future to effectively compete in the global economy.
Human capital is a key driver of economic growth and development and it is critical for the private sector to scale up business in developing countries. Investing in people through nutrition, quality health care, education, jobs and skills helps develop human capital.
Over the past decades, we have achieved historic human development gains, but a massive gap still remains:
- Nearly a quarter of all young children are stunted,
- Half of the worldâs population cannot access essential health services, and
- A learning crisis is holding many countries back.
There is mounting evidence that without strengthening human capital, countries cannot sustain economic growth, will not have a workforce prepared for more highly skilled jobs of the future to effectively compete in the global economy.