With just over ten years until 2030, developing countries face important and complex challenges around the Sustainable Development Goals (SDGs). Not least of which is how to finance the investments needed to achieve them.
Estimates suggest that developing countries face a $2.5 trillion annual financing gap to meet the SDGs. Other studies conclude that the challenge of meeting this annual financing gap is substantial in low-income countries, which would require additional annual spending of 15.5 percentage points of GDP in 2030, focused relatively evenly on infrastructure and education and health.
Investments in human, social, and physical capital are at the core of sustainable and inclusive growth – and represent an important share of national budgets.
At the World Bank Group we have been at the forefront of the so-called Financing for Development (FfD) agenda to leverage public, private, international, and domestic sources of capital to help reach the global goals. A short primer on our efforts–which builds on the 2015 Development Committee paper Billions to Trillions – Transforming Development Finance–can be found in the brochure entitled Financing for Development at the World Bank Group.
WASHINGTON DC, APRIL 11th, 2019.- Senior representatives of the Kingdom of the Netherlands and the World Bank today signed an agreement for USD 7,000,000 to support developing countries’ efforts in mobilizing much-needed public domestic resources to achieve the Sustainable Development Goals, particularly in Africa and the Middle East.
The four-year agreement aims at boosting domestic resource mobilization while strengthening tax policy and administrative capacity in selected countries in North, Western, and Central Africa, as well as in the Middle-East. Some countries that may benefit from this agreement include: Benin, Burkina Faso, Chad, Côte D’Ivoire, Ghana, Liberia, Niger, Nigeria, Senegal, Ethiopia, Kenya, Iraq, Jordan, and Lebanon.
Improving the capacity of national statistical systems (NSSs) has long been a part of the global development agenda. The NSSs play an important role in modern economies. They provide stakeholders, ranging from policy makers to stock market analysts and the general public, with the data on the country’s socioeconomic developments. At the international level, monitoring global initiatives such as the Sustainable Development Goals (SDGs) requires high-quality data that are produced consistently across different national statistical systems.
poverty on the whole is declining, that’s not the case in countries affected by conflict. It is these countries plagued by near-constant political and economic instability that are often the ones most in need of private investment. Yet they are also the places few private investors are willing to go. The risks seem to outweigh the rewards.
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Since its launch in March 2016, as a global road safety fund, the GRSF had focused on getting maximum value for the use of its donor funds by making a difference in how we invest in road safety. This is in line with our Strategic Objectives of developing capacity for sustainability in road safety results, promoting a global network of road safety funding, coordination and advocacy mechanisms, and leveraging development bank projects, particularly those of the GRSF host organization, the World Bank.
Earlier this month, development banks from around the world took stock of where they stand and where they see their efforts having the greatest impact at a meeting organized by the World Bank and Brazil’s development bank, BNDES.
As the world struggles
in narrowing that gap. They can help to crowd-in the private sector and anchor private-public sector partnerships, particularly for infrastructure financing.