The document discusses financing for sustainable development goals (SDGs) that will require significantly more than the $135 billion currently available from official development assistance. Meeting the SDGs will need funding from billions to trillions due to the scale of investment required. Domestic resource mobilization will be key to closing this funding gap and includes improving tax administration, managing natural resources, limiting capital flight, and investing in infrastructure. Infrastructure projects in particular can have multiplier effects and increase economic growth and tax revenues to help fund further development. Significant annual global investments equivalent to 2.5% of GDP or $3-4 trillion will be needed in infrastructure such as roads, energy and water systems. Challenges include building capacity, preventing narrow interests from
15. THE GENERATION OF SAVINGS FROM DOMESTIC
RESOURCES AND THEIR ALLOCATION TO
ECONOMICALLY AND SOCIALLY PRODUCTIVE
INVESTMENTS.
SOURCE: BERTRAND BADRE, WORLD BANK GROUP
16. ‘For most countries, DRM is the largest resource
available to fund their national development plans. A
country’s ability to mobilise domestic resources and
spend them effectively – at the national, sub-national
and municipal levels – lies at the crux of financing for
development.’
SOURCE: “FROM BILLIONS TO TRILLIONS: TRANSFORMING DEVELOPMENT FINANCE POST-2015 FINANCING FOR DEVELOPMENT: MULTILATERAL DEVELOPMENT FINANCE”
18. BETTER TAX ADMINISTRATION
GREATER CAPACITY TO NEGOTIATE AND
MANAGE NATURAL RESOURCE CONTRACTS
STRONGER MECHANISMS FOR LIMITING
CAPITAL FLIGHT (BASIS EROSION) AND
ILLICIT FINANCIAL FLOWS
INCREASED INVESTMENT IN AND ACCESS TO
ESSENTIAL INFRASTRUCTURE AND SERVICES
MAHMOUD MOHIELDER – CORPORATE SECRETARY, WORLD BANK GROUP
19. BETTER TAX ADMINISTRATION
GREATER CAPACITY TO NEGOTIATE AND
MANAGE NATURAL RESOURCE CONTRACTS
STRONGER MECHANISMS FOR LIMITING
CAPITAL FLIGHT (BASIS EROSION) AND
ILLICIT FINANCIAL FLOWS
INCREASED INVESTMENT IN AND ACCESS TO
ESSENTIAL INFRASTRUCTURE AND SERVICES
MAHMOUD MOHIELDER – CORPORATE SECRETARY, WORLD BANK GROUP
20. BETTER TAX ADMINISTRATION
GREATER CAPACITY TO NEGOTIATE AND
MANAGE NATURAL RESOURCE CONTRACTS
STRONGER MECHANISMS FOR LIMITING
CAPITAL FLIGHT (BASIS EROSION) AND
ILLICIT FINANCIAL FLOWS
INCREASED INVESTMENT IN AND ACCESS TO
ESSENTIAL INFRASTRUCTURE AND SERVICES
MAHMOUD MOHIELDER – CORPORATE SECRETARY, WORLD BANK GROUP
21. BETTER TAX ADMINISTRATION
GREATER CAPACITY TO NEGOTIATE AND
MANAGE NATURAL RESOURCE CONTRACTS
STRONGER MECHANISMS FOR LIMITING
CAPITAL FLIGHT (BASIS EROSION) AND
ILLICIT FINANCIAL FLOWS
INCREASED INVESTMENT IN AND ACCESS TO
ESSENTIAL INFRASTRUCTURE AND SERVICES
JAMES BRUMBY, WORLD BANK GROUP
27. AN ANNUAL INVESTMENT EQUIVALENT TO 2.5% OF
GLOBAL GROSS DOMESTIC PRODUCT (GDP) WILL BE
REQUIRED OVER THE NEXT 25 YEARS TO ADDRESS THE
CURRENT INFRASTRUCTURE SHORTFALL1.
1. OECD ESTIMATE (2015)
THIS EQUATES TO APPROXIMATELY US$3-4 TRILLION
(2015) PER YEAR2.
2. RICHARD ABADIE – PARTNER & GLOBAL LEADER OF CAPITAL PROJECTS AND INFRASTRUCTURE, PWC
30. 1. CAPACITY
2. CAPTURE
3. CORRUPTION
GOVERNMENTS MAY NOT HAVE THE INSTITUTIONAL CAPACITY TO
ENSURE PUBLIC EXPENDITURE EFFICIENCY AND FINANCIAL
ACCOUNTABILITY.
THERE IS A NEED TO ENSURE WIDER COMMUNITY INVOLVEMENT
IN INFRASTRUCTURE DEVELOPMENT TO AVOID NARROW
INTERESTS CAPTURING LIMITED STATE RESOURCES.
CURBING ILLICIT FINANCIAL FLOWS IS ESSENTIAL.