The document discusses financing frameworks for post-2015 development goals. It notes that the original MDGs were created without a financing plan, so future goals need an integrated framework. Good policies and institutions are important to generate more domestic resources and leverage foreign funds. The document outlines various sources of development financing including taxes, aid, climate funds, global health partnerships, Islamic bonds, sovereign wealth funds, and private investments. It emphasizes mobilizing different sources of funding tailored to country contexts to implement post-2015 goals.

1. The Seoul Post-2015 Conference: Implementation and Implications
Seoul, Korea
October 7, 2013

2. • The original MDGs were articulated independently of a financing
framework (Monterrey 2002).
• In a context of fiscal consolidation and an evolving landscape of
development financing, discussion of post-2015 goals would need to be
integrated with consideration of a supporting financing framework for
implementation.
• The purpose of this presentation is to present some elements of a
financing framework for the post 2015 development goals.
2

3. Increase impact of available resources
Leverage additional resources
3
Good policies and credible institutions enhance the impact of available
resources and leverage additional resources from both domestic and
foreign sources.
Good policies and credible institutions to:

4. At the country level: Globally:
• Design targeted, evidence-
based policies and support
sound institutions
• Generate more revenues
• Ensure efficient public
spending
• Promote financial deepening
and inclusion
 Maximize the impact of ODA
 Support new development
partners
 Leverage the private sector
 Tap into new sources of finance
 Deliver global public goods
4

5. 21.2
28.4 28.4 29.3
18.8
17.1
19 19.3
11.3
10 10.5
13.6
0
5
10
15
20
25
30
35
1994 1998 2003 2009
High Income Middle Income Low Income
5
Tax Revenue (in % of GDP) by Income Groups, 1994-2009
Source: World Development Indicators

6. 6Source: World Energy Outlook, IEA,
Fossil fuel consumption subsidies measure
what developing countries spend to provide
below-cost fuel to their citizens. High-income
countries offer support to energy production in
the form of tax credits or loan guarantees,
which are not included in these calculations
since they are directed towards production
rather than consumption of the fuel.
Subsidies are an inefficient means of assisting
the poor: only 8% of the $409 billion spent on
fossil-fuel subsidies in 2010 went to the
poorest 20% of the population.

7. How do financial
institutions contribute to
economic growth?
Improve the allocation
of resources
Lower the cost of
financial and
nonfinancial
transactions
Facilitate efforts to
reduce and trade risks
7

8. 8
Source: World Bank CFP Working Paper No. 8,
Finance for Development Source: Fragile States 2013, OECD
NB: Based on OECD definition of fragile states

9. 9
Source: World Bank CFP Working
Paper No. 8, Finance for Development
For the purpose of comparison, in 2009, net ODA from DAC members
was 119.8 bn USD.
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2003 2004 2005 2006 2007 2008 2009
Estimated aid from BRICS, 2003-2009 (USD billion)
China India Russia Brazil South Africa

10. 10
ODA from Saudi Arabia, South Korea, and Turkey, 2003-2009 (Gross disbursements, US$ billion)
ODA from non-DAC donors excluding BRICS, 2003-2009 (Net disbursements, US$ billion)
DAC Annual Reports and IDS Statistics; Zimmerman and Smith, 2008

11. • Global funds: trust funds that pool resources for specific issues of global
importance
– Global Partnership for Education
– GAVI Alliance (formerly the Global Alliance for Vaccine and Immunization)
– Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM)
– Global Environment Fund (GEF)
• Scattered data – available estimates for private aid to developing countries in 2009
range from USD 22 billion to USD 53 billion
• Low estimate is equivalent to 16 percent of ODA from all donors in the same year,
and up from 2005 (12 percent of ODA)
• Private philanthropy to fragile states increasing in recent years
• South-South philanthropy also on the rise, especially in the Arab world
• Philanthropic giving highly sensitive to factors such as media coverage, timing,
geopolitical considerations
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12. 12
M a h a r a s h t r a & T a m i l N a d u , I n d i a
C L I F F C O M M U N I T Y S AN I TAT I O N
P R O J E C T
T o t a l i n i t i a l i n v e s t m e n t : $ 7 . 2 m i l l i o n
- H o m e l e s s I n t e r n a t i o n a l
- S P A R C ( N G O i n I n d i a )
- C o m m u n i t y - b a s e d O r g a n i z a t i o n s
K e n y a
P R I VAT E S E C T O R P O W E R
G E N E R AT I O N P R O J E C T
T o t a l i n i t i a l i n v e s t m e n t : $ 6 2 3 m i l l i o n
- K e n y a P o w e r a n d L i g h t i n g C o m p a n y
- I F C
- M I G A
- C o m m e r c i a l B a n k s
S a o P a u l o , B r a z i l
M E T R O L I N E 4
T o t a l i n i t i a l i n v e s t m e n t : $ 4 5 0 m i l l i o n
- C o m p a n h i a d o M e t r o p o l i t a n o d e S a o
P a o l o
- 5 E q u i t y S p o n s o r s
- I D B
- C o m m e r c i a l B a n k s
L a k e K i v u , R w a n d a
K I V U WAT T
T o t a l i n i t i a l i n v e s t m e n t : $ 1 4 2 . 2 5
m i l l i o n
- C o n t o u r G l o b a l
- E n e r g y A u t h o r i t y o f R w a n d a
- M I G A
- E m e r g i n g A f r i c a I n f r a s t r u c t u r e F u n d
- F M O
- A f D B
- B e l g i a n D e v e l o p m e n t B a n k
Source: Emerging Partnerships, IFC, 2013 and World Bank, Africa Region.
Emerging
Partnerships

13. 13
Total assets by type of institutional investors in the OECD, 1995-2011
(USD trillions)

14. AgResults Initiative
I n t e r n a t i o n a l F i n a n c e F a c i l i t y
f o r I m m u n i z a t i o n ( I F F I m )
Inputs
increasing
yields
Outputs
post harvest
management
Livestock Nutrition
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Linking spending to actual development outcomes

15. • Global public goods lie at the intersection of national development
priorities and global interests
• The under-provision of GPGs disproportionately affects the poor
• GPGs are at the center of the post-2015 agenda:
– International financial architecture
– Trade/market access
– Peace and security
– Climate change
– Communicable diseases
– Knowledge for development
– Statistical capacity-building
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16. • Promote targeted policies and support accountable, efficient institutions for shared growth
• Mobilize domestic resources for development through:
– Broader tax coverage and increased taxation capacity
– Efficient public spending and greater accountability
– Management of natural resource revenues
– Deeper domestic financial sector
– Vibrant private sector development for job creation and shared growth
• Maximize the impact of ODA
• Leverage more private resources
• Draw on emerging and innovative sources of finance
• Deliver global public goods
The range of financing sources and instruments have different challenges and comparative advantages.
Mobilizing a broad range of financing and using the right combination of instruments to meet a given goal, in
a given country context, would be important tasks ahead to implement the next development framework
post-2015.
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17. 17
Marilou Uy
Senior Adviser
The World Bank
muy@worldbank.org