FINANCING FOR DEVELOPMENT IN CHAD

1. FINAL PROJECT: FINANCING FOR
DEVELOPPEMENT IN CHAD
BILLIONS TO TRILLIONS TO ACTION

2. A FINAL PROJECT IN PARTIAL FULFILMENT FOR THE FINANCING FOR
DEVELOPMENT COURSE NOVEMBER 17 TO
DECEMBER 14, 2015
BY
ADELE KOUMATO
FINANCING FOR DEVELOPPEMENT : CHADIAN CASE
CHALENGES, PROPOSITION OF SOLUTIONS AND SUIVI ET
EVALUATION

3. SUSTAINABLE DEVELOPPEMENT
GOALS (SDGs)

4. SUSTAINABLE DEVELOPPEMENT
GOALS (SDGs)
• On September 25th, countries will have the opportunity to adopt a set of goals
to end poverty, protect the planet, and ensure prosperity for all as part of
a new sustainable development agenda. Each goal has specific targets to be
achieved over the next 15 years.
• SDGs tackle the dual challenge of overcoming poverty and protecting the
planet, embracing economic, social and environmental dimensions
• For the goals to be reached, everyone needs to do their part: governments,
the private sector, civil society and people like you. So what about CHAD?
What are challenges and policy we can review?
• The target audience are The General Public, Government Officials, Policy
Makers, International & National Non- Governmental Organizations (NGO’s),
Multinational & Local Companies, Philanthropists, Banks etc.

5. SUSTAINABLE DEVELOPPEMENT
GOALS (SDGs)
Target to implement that goals in Chad, source of UN report:
• Eradicate extreme poverty and hunger: Halve, between 1990 and 2015, the proportion of people whose
income is less than one dollar a day
• Achieve universal primary education: Ensure that, by 2015, children everywhere, boys and girls alike, will be able
to complete a full course of primary schooling
• Promote gender equality and empower women: Eliminate gender disparity in primary and secondary education,
preferably by 2005, and to all levels of education no later than 2015
• Reduce child mortality: Reduce by two thirds, between 1990 and 2015, the under-five mortality rate
• Improve maternal health: Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio: Births
attended by skilled health
• Combat HIV/AIDS, malaria and other diseases: Have halted by 2015 and begun to reverse the spread of HIV/AIDS:
Condom use at last high risk sex, Aids Orphan and deaths, contraceptive use
• Ensure environmental sustainability : Integrate the principles of sustainable development into country policies
and programs and reverse the loss of environmental resources: CO2, consumption of all Ozone Depleting
Substances in ODP metrics; Protected areas; land area covered by forest . Create condition to people without
sustainable access to safe drinking water
• Develop a global partnership for development: Address the special needs of landlocked countries and small
island developing States; ODA received in landlocked developing countries . Deal comprehensively with the debt
problems of developing countries through national and international measures in order to make debt sustainable
in the long term. In cooperation with the private sector, make available the benefits of new technologies,
especially information and communications

6. FINANCING RESSOURCES.
• $3 trillions is needed for development annually, estimated by the World Bank Group.
• In principle, adequate financial resources are available globally.
• However, available public and private resources will not automatically be allocated effectively to support the SDGs. Unlocking domestic resources is
required.
Figure 4: Contribution of the subregion’s countries to total GDP in real value
Source: WDI 2012, 2010 figures.

7. DOMESTIC RESSOURCES
MOBILIZATION (DRM)
According to the IMF, to increase supported to development countries, we have to:
• Improve coordination with each other, donors and client countries in the provision of policy
• guidance and capacity building services for DRM and public expenditure to address the “way
• ahead” measures described in this section.
• Strengthen collaboration on international tax issues with the OECD and the United Nations;
• Support policy networks at the sub-regional, regional and global level, to share experience and
• good practices, and knowledge and standards for domestic reform efforts;
• Scale up practicable guidance and tool-kits in key areas, e.g. cost/effectiveness analysis in adopting
• and assessing tax breaks and subsidy reforms and regular review of assumptions and impact
• Support the adoption of sound practice guidelines and analytical tools in the area of public debt
• management; and
• Enhance collaboration in supporting countries and facilitate inter-agency planning, in sharing tools,
• standards, and analysis for capacity building to improve data and statistical systems to monitor tax
• collection and the impact of public expenditures.
One possible way to mobilize domestic resource effectively is through Public-Private Partnership (PPP).
This cooperation can illustrate the idea of Blended Finance which is mixing public sector social return
objectives into financial return objectives of the private sector and reducing risks by the public sector.
When this financing channel is utilized effectively, it will have a larger impact on development by
serving the role of catalyzing private resources and mitigating risks.

8. PUBLIC PRIVATE PARTNERSHIP (PPP)
• Many African countries are not at the beginning stage of PPP model development so Chad
situation is deplorable.
• Countries with successful PPP models such as the UK, France, Spain, Germany and Japan, all
have comprehensive legal framework and management systemfor PPP. For some
Commonwealth countries, Ministry of Finance also comes out with laws and guidance
regarding every stage of a PPP project. Furthermore, some countries like Canada, South
Korea and Germany also formed the national PPP centre or equivalent management
structure. This legal framework with a management system is a key to the success of PPP
model in infrastructure development. So let each country to developp their finance system.

9. CHALENGES IN CHAD
• Lack of infrastructures finance by the private sector: news sources of instruments of finance
• Local currency source
• Domestic financial intermediaries
• Designing policies that promote financial inclusion and access to finance for individuals
• Relatively weak private capital:Private firms may not be able to accept the long payback period
under PPP models and worry about the risk of default in the long term.
• Inadequate, inaccessible financial services is undoubtedly one of the reasons why the poor are
trapped in poverty: Without access to finance, the poor people cannot invest in tools to increase
productivity, start a microenterprise, invest in education or health, or even take time to search for
better opportunities. In addition, monetary exchanges require a physical location and people need
transportation to get to the location, both of which can be problematic in infrastructure-
constrained countries such as Kenya, particularly in rural areas

10. POLICY RECOMMENDATIONS FOR PPP
IN CHAD
• Diversify investment & financing sources
• Financing risk management mechanisms: These initiatives leverage public funds to create investment
incentives for the private sector through mechanisms that correct market failures, reduce sovereign risk
and/or macroeconomic and climate-driven vulnerabilities. Examples of risk management approaches
include guarantees, derivatives, blended finance, pooled vehicles and project preparations facilities. These
mechanisms provide insurance protection for risk sharing or full risk transfer
• Review the legal form
• Build a standardized management system
• Combat corruption by a finance integrity
• good prototype that can be adapted for all the local purposes
• Implement programs for sustainable urban development with integrated
• components for land development, urban infrastructure, socio-economic integration
• of youth, mass education on citizenship and support to the private sector for social
• responsibility of businesses, etc.;
• Improve the effectiveness of national statistical data production and dissemination
• systems for formulating and managing public policies that facilitate identification of
• priorities and monitoring of progress. The challenge is to be able to transcend the
• physical implementation in order to quantitatively and qualitatively assess progress
• and the final outcomes of public policies.

11. CONCLUSION
In other words, there is the need for a pragmatic and sustainable risk pooling mechanism;
Introduction of means to remove physical and financial barriers to access of differents services
for the poor accompanied by financial protection policy; as well as the usage of socio-economic
characteristics. Other strategies that could help the country include: increased Public-Private
Partnership (PPP) looking at government partnership with private services providers/
Government can also embark on transparency and good governance
Finally, With stability in the government and transparency in managing , I am certain than we can
implemented correctly SDGs so the evaluation of PP and give for individuals persons also bring
employment to their communities.