From Summits to Solutions: Innovations in Implementing the Sustainable Development Goals Brookings Institution February 2017

1. MULTILATERAL DEVELOPMENT BANKS
IN A CHANGING WORLD:
CROWDING IN OR CROWDING OUT
FROM SUMMITS TO SOLUTIONS: INNOVATIONS IN
IMPLEMENTING THE SUSTAINABLE DEVELOPMENT GOALS
Mahmoud Mohieldin and Jos Verbeek
February 13, 2017

2. Outline: MDBs in a Changing World
• Where is the World Today?
• LICs-LMICs-UMICs
• Role of MDBs
• Conclusions
2

3. Where is the World Today?
• Transitioning from MDGs to
SDGs
• The world is very different
today
3

4. LICs-LMICs-
UMICs
• Useful Gradient to
analyze the role of
MDBs
4

5. Role of MDBs
• Finance – B2T
• Implementation –
Capacities/Capabilities
at the Country level
• MDGs –
Collectively/Themselves
5

6. Where is the
World Today?
6
1990 2013
Population in LICs 58% 12%
Extreme poor 36% 11.5%
% of Global GDP 1990 2013
LICs 5% 20%
MICs 15% 20%

7. Where is the World Today? MDGs Attainment
7

8. Where
is the
World
Today?
SDGs
challenges
Data latest available 8
46.2
26.1
49.6
53.2
65.9
24.2
28.3
25.4
1.4
8.2
30.7
12.7
3.5
9.4
7.4
16.4
14.0
25.1
39.8
91.0
17.4
52.0
78.0
4.1
16.4
39.0
2.8
5.0
0.7
4.6
2.7
8.2
5.4
14.7
96.7
23.3
80.0
98.7
2.3
21.0
64.1
2.8
9.9
0.3
7.2
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0
POVERTY HEADCOUNT RATIO AT $1.90 A DAY (2011 PPP)
(% OF POPULATION)
PREVALENCE OF UNDERNOURISHMENT (% OF
POPULATION)
MATERNAL MORTALITY RATIO (MODELED ESTIMATE, PER
100,000 LIVE BIRTHS)
MORTALITY RATE, INFANT (PER 1,000 LIVE BIRTHS)
PRIMARY COMPLETION RATE, TOTAL (% OF RELEVANT
AGE GROUP)
PROPORTION OF SEATS HELD BY WOMEN IN NATIONAL
PARLIAMENTS (%)
IMPROVED SANITATION FACILITIES (% OF POPULATION
WITH ACCESS)
ACCESS TO ELECTRICITY (% OF POPULATION)
GNI PER CAPITA GROWTH (ANNUAL %)
MANUFACTURING, VALUE ADDED (% OF GDP)
URBAN POPULATION (% OF TOTAL)
TOTAL NATURAL RESOURCES RENTS (% OF GDP)
MARINE PROTECTED AREAS (% OF TERRITORIAL WATERS)
FOREST RENTS (% OF GDP)
INTENTIONAL HOMICIDES (PER 100,000 PEOPLE)
UMICs LMICs LICs

9. LICS-LMICS-
UMICS –
RELEVANT GRADIENT
9

10. 10
LICs-LMICs-UMICs
Importance of Official
Development Assistance

11. 11
LICs-LMICs-UMICs:
Who Are the Creditors?
0
5000
10000
15000
20000
25000
30000
35000
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
US$(millions)
Inflows to Low Income Countries by Creditor Type
MULTILATERAL
BILATERAL
BONDS
FINANCIAL INSTITUTIONS
EXPORT CREDITS
SUPPLIERS CREDITS
OTHER
0
50000
100000
150000
200000
250000
300000
350000
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
US$(millions)
Inflows to Middle Income Countries
by Creditor Type

12. 12
LICs-LMICs-UMICs: Role
of Public Private Partnerships
69
$'17
$'244
849
$'345
$'407
1483
$'722
$'487
0 200 400 600 800 1000 1200 1400 1600
# of Projects
$ projects, billions
Average value per transaction,
millions
UMICs LMICs LICs

13. 13
LICs-LMICs-UMICs: Country
Policy and Institutional Assessment
2.5
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
3.5
Overall CPIA
Economic
Management
Structural Policies
Policies for social
inclusion
Publc Sector
Management and
Institutions
LICs LMICs

14. ROLE OF THE
MDBS
14

15. 15
Role of the MDBs - Financing

16. 16
Role of the MDBs - Financing
Facilitating
• Private to Private Flows: Exports –
Remittances – DFI – Portfolio Inv –
(local) Capital Markets
Mobilizing
• Private to Public: DRM/IFF/sTAR –
PPPs – Derisking
(blending/guarantees) – Portfolio
Inv – (local) Capital Markets

17. 17
Role of the MDBs – Capacity
Development @ Country Level
Macroeconomic management
• Absorptive capacity of financial
flows
Public expenditure management
• Aggregate fiscal management
• Allocative efficiency
• Operational efficiency
Operational readiness
• Project preparation and
implementation
• System readiness (e.g.
health/disaster preparedness)

18. 18
Role of the MDBs –
Collectively & Themselves
Financial
• Leveraging – Balance sheet –
Syndication
• Crowding in – Cascading objectives
Develop Capacities/Capabilities at the
Country Level
• Use various country assessments
(CPIA/PEFA/PIM/FSAP/DBI/GDI)
• Scale up TA based on those
assessments

19. Summary
• SDGs attainment needs trillions in finance
but equally requires capacity to absorb,
prepare and implement programs and
projects
• MDGs have a role to play: raise finance and
improve capabilities at the country level
• MDGs need to ensure that they crowd in, not
crowd out: B2M instead of B2T
19

20. QUESTIONS?
20
THANK YOU