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.
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Nordgren project donor to invisible hands
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