Measuring Development Finance - A Situation Report


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This is a presentation by the Director of the Development Co-operation Directorate of the OECD Jon Lomøy to the Expert Reference Group on external financing for development. The presentation was given 3-4 October, 2013 and outlines the objectives of the work programme looking at how development finance is measured.

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Measuring Development Finance - A Situation Report

  1. 1. Measuring Development Finance: A Situation Report Presentation by Jon Lomøy Introduction to the 1st Session of the Expert Reference Group OECD / 3-4 October 2013
  2. 2. Post-2015 discussion is taking shape  Eradicate absolute poverty by 2030  Bring the poverty and sustainability agendas together  Climate change and peace and security part of the development agenda  UN post-2015 HLP report: ‘A single agenda should have a coherent overall financing structure’
  3. 3. Today’s external development finance landscape
  4. 4. Financing development: new challenges  ODA - An increasingly smaller share of resource receipts by developing countries (20% today vs. 50% in 1960s) despite having increased by 63 % over the last decade  Many more actors - SSC, emerging providers, foundations, private sector  Private flows much larger, more dynamic  Need for a comprehensive measurement system for external development finance post-2015 – current system too ODA centric
  5. 5. New measure of development finance OECD-DAC Ministers (Dec 2012):  Define a new measure of total official support for development beyond ODA  Represent both donor effort and recipient benefit  Look at whether ODA concept needs to be modernised  Map out different sources, types and flows, including relationship & conditions for maximising impact  Establish by 2015 a clear, quantitative definition of concessional in character in line with prevailing financial market conditions.
  6. 6. External development finance: emerging concepts - provider’s perspective
  7. 7. External development finance: emerging concepts - country’s perspective
  8. 8. What DAC statistics include
  9. 9. What DAC statistics do not include  Some flows Trade flows; remittances; official payments to individuals; flows originating in developing countries; military aid and security expenditures  Stocks Stocks of foreign direct and portfolio investments and external debt  Contingent liabilities Ex. guarantees; insurance schemes; catastrophe bonds  Other financial instruments International taxes, fees and charges, international liquidities, blended value instruments and tax breaks for contributions to NGOs
  10. 10. Other considerations  Non-DAC official providers  Regional and sub-regional DFIs  Foundations (only the Gates Foundation reports to CRS)  Corporate philanthropy  Hybrid organisations - social venture capital initiatives  NGOs
  11. 11. Issues for discussion  Are all the major elements of development finance (actors, flows, modalities and instruments) adequately measured and covered? Where are the gaps?  What might be the best avenues for improving data availability?  How can the DAC statistical system be built upon to accommodate the ever-increasing number of development actors, instruments and modalities?