Billions to Trillions to Action: Moving Finance for Development from Donor Hands to Invisible Hands, 2016-2030 Target Audiences: Development professionals charged with mobilizing private sector finance for development AND Business professionals charged with making corporate social responsibility a competitive advantage MOOC Lesson/Problem: To achieve 17 SDGs (2016-2030), about $3 trillion per year in private sector financing must be achieved through strategic application of about $135 billion per year in ODA Solution: Position investment in development as a source of competitive advantage, not as charitable giving. Rationale: Easier to motivate private sector by economic than by humanitarian benefits.

1. Billions to Trillions
to Action
Moving Finance for
Development from
Donor Hands to
Invisible Hands,
2016-2030

2. World Bank Group’s Coursera online course ,
Financing for Development, Billions to Trillions to Action,
explained the new financing strategy based on
public-private partnerships to achieve the United Nations’
17 Sustainable Development Goals (SDGs) from 2016-2030.

3. All United Nations Members Accept
17 Sustainable Development Goals
 No poverty
 No hunger
 Good health
 Quality education
 Gender equality
 Clean water
 Clean energy
 Jobs & growth
 Innovation & infrastructure
 Reduced inequalities
 Sustainable communities
 Responsible consumption
 Protect the planet
 Life below water
 Life on land
 Peace & justice AND . . .

4. Partnerships for the Goals
 Sustainable Development Goal #17
 Public-Private Partnerships to Fund Development
 Billions to Trillions to Action, 2016-2030
 US$135 billion/year from government sector
 US$3 trillion/year from private sector
 The BIG question:
How to get US$3 trillion/year from private sector?

5. SOLUTION:
Donor Hands to Invisible Hands
 Donor hands: Focus on donations from the private
sector
 Motivation to give: Be a good global citizen
 Invisible hands: Focus on benefits to the private
sector
 Motivation to give:
 Profit
 Competitive advantage

6. Social Responsibility as
Competitive Advantage
 Idea from Michael Porter and Mark Kramer
 Corporate problem: Choose corporate social
responsibility and shareholder wealth
 SOLUTION: Achieve both by choosing socially
responsible actions that product competitive
advantages.
 Application: Appeal to benefits to business
achieved through development activities.

7. Examples
 MasterCard’s Innovation Lab
 Extend financial services to 100 million Kenyans
 Gates Foundation shares the risk
 E-Identity program for 13 million Nigerians
 MasterCard is early entry to African consumer
finance
 MasterCard learns to provide services profitably to
bottom-of -pyramid poor in Africa

8. Conclusion
 Using the billions of governmental funding and
private philanthropy can improve conditions to
attract private sector.
 Focusing on competitive advantages and financial
benefits for business can attract more private
sector money than by only relying on charity.

9. References
 MasterCard (2015). A shared journey: MasterCard
annual report 2014.
http://www.ezodproxy.com/mastercard/2015/ar/HT
ML1/mastercard-ar2014_0001.htm
 Porter, M. & Kramer. M. (Dec. 2006) Strategy &
society: The link between competitive advantage
and corporate social responsibility. Harvard
Business Review, 84(12), 78-92.
 World Bank Group (2015). Financing for
development: Billions to trillions to action.
https://www.coursera.org/course/fin4devmooc