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Submitted by Caleb Opon on
We can end world poverty. This is how we bend the arc. We can channel the huge budget allocations for health and education through the global sovereign debt market to raise additional funds without disrupting the flow of funds to the sector. This can be done by banks who at the beggining of a governments financial year will mobilze the sector budget equivalent, invest it in sovereign debt yet make available the monthly equivalent for recurrent expenditure. Government will then collect taxes and reimburse the bank in effect creating an investment in perpetuity capped by the sector budgets.This will free host governments to focus on recurrent expenditure while the revenues raised from the debt market can fund development expenditure i.e infrastructure, school and medical equipment, supply of drugs. In the process all households will access quality education and health services free of charge while suppliers of these goods services will be paid at market rates. This small idea can therefore make a big difference. The ability of the bank(s) to generate revenues at a small fee for schools and hospitals independent of the budget and without charging poor households means these institutions that traditionally have been viewed as constituting cost sectors, now have an alternative and sustainable revenue source. This should be a game-changer in development terms. By identifying alternative financing options for education and health without compromising quality, we solve a problem that has confronted the education and health sectors for a long time especially in developing countries. We will have reconfigured global sovereign debt to serve social causes on a sustainable basis benefiting not just Wall Street but World Street.

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