The more we know about our rapidly changing environment, climate, and demographics, the more we learn about how critical forests are for our resilience, overall wellbeing, livelihoods, and economies. Unfortunately, in a world of budgetary constraints and competing interests, governments face increasingly complex decisions when it comes to supporting different sector priorities. The solution is to move away from the traditional approach of sectors operating in isolation or in competition with one another, and more towards an integrated win-win approach. But how?
The 2030 Agenda for Sustainable Development rightfully points out that sustainability has three dimensions: economic, environmental, and social. The first two are well understood and well measured.
Economic sustainability has a whole strand of literature and the World Bank and IMF devote a lot of attention to debt and fiscal sustainability in their reports. Just open any Article 4 consultation or any public expenditure review and you will find some form of fiscal or debt sustainability analysis.
The same can be said about environmental sustainability. Since Cancun (COP16), countries prepare National Adaptation Plans, and since COP 21, they have prepared Nationally Determined Contributions (NDCs) which focus on domestic mitigation measures to address climate change.
Em todo o mundo, bancos de desenvolvimento estão avaliando sua atuação e observando onde esses esforços têm mais impacto. O tema foi objeto de uma reunião organizada pelo Banco Mundial e pelo Banco Nacional de Desenvolvimento Econômico e Social (BNDES).
Os bancos de desenvolvimento se tornam peças cada vez mais fundamentais à medida que o mundo busca angariar os recursos necessários para atingir os Objetivos de Desenvolvimento Sustentável. Esses bancos podem ajudar a atrair o setor privado e solidificar as parcerias entre os setores público e privado, principalmente em matéria de financiamento de infraestrutura.
No entanto, o uso abusivo de bancos de desenvolvimento pode gerar riscos fiscais e distorções no mercado de crédito. Para evitar essas armadilhas, os bancos de desenvolvimento precisam de uma missão bem definida e devem operar sem influência política, concentrar-se no combate às grandes falhas de mercado, focar as áreas onde o setor privado não atua, monitorar e avaliar intervenções e realizar os ajustes necessários para garantir o impacto almejado. Também precisam ser transparentes e responsáveis.
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.
However, misusing development banks can lead to fiscal risks and credit market distortions. To avoid these potential pitfalls, , operate without political influence, focus on addressing significant market failures, concentrate on areas where the private sector is not present, monitor and evaluate interventions and adjust as necessary to ensure impact, and, finally, be transparent and accountable.
Two themes characterized the discussion at the meeting: . To support Small and Medium Enterprises (SME) finance, development banks use partial credit guarantees while letting private lenders originate, fund, and collect on credit. In markets with limited competition, development banks support the creation of an ecosystem of specialized Micro, Small, and Medium Enterprises (MSME) lenders to which they provide a stable funding source.
With the adoption of a universal development agenda and growing commitments to fight climate change from all corners, 2015 will be remembered as a high water mark for international cooperation. Almost a year later, when the news is dominated by violence and nationalism, it’s tempting to give in to pessimism about global trends. But I find reason to hope when I see the implementation of the Sustainable Development Goals (SDGs) gaining traction.
The SDGs were the result of the most collaborative and inclusive process in UN history and signal a very real shift in the way people think about tackling development challenges to deliver a viable future for both the planet and its people. There is growing understanding that the two are indelibly linked.
The sustainable development agenda adopted by world leaders in September 2015 set a series of ambitious goals to end poverty, ensure equal economic growth, and tackle climate change by 2030. Rising inequalities, especially in developing countries, remind us that if we want to achieve these goals, we need more inclusive policies which consider the needs of the most vulnerable and disadvantaged populations.
Policymakers are constantly trying to identify better solutions to address global challenges, and that implies considering different policy options, and making a choice that can benefit each group of the population, which sometimes is extremely difficult. Even well-designed policies might have adverse impacts, particularly on the poor and the most socially excluded groups. That is why we need evidence to support better policy decisions, and that’s when Poverty and Social Impact Analysis (PSIA) gets in the picture. What is exactly PSIA? The World Bank defines it as “an approach to assess the distributional and social impacts of policy reforms on the well-being of different groups of the population, in particular the poor and vulnerable.”
There is enough trouble out there to keep any policymaker up at night. Recent volatility has roiled Chinese and global stock markets, commodity prices have slumped, and security concerns are rising. All of this raises serious questions over the health of the global economy. This year could shape up to be risky, full of challenges and concerns for the fight against poverty.
We ended 2015 with good news: For the first time in history, the number of extremely poor people dropped below 10% of the world’s population. The new Sustainable Development Goals and the Paris climate deal bring momentum to our effort to lift the remaining 700 million extremely poor people out of poverty while generating climate-smart economic growth.
At a technical meeting of the g7+ group of fragile states, participants from Haiti to Timor Leste gathered with a mission: to sift through the many proposed indicators for the 17 Sustainable Development Goals (SDGs), and select 20 indicators for joint g7+ monitoring.
Hosted recently in Nairobi by the World Bank’s Fragility, Conflict and Violence Group, it was the first time that 17 out of 20 g7+ members were present, including senior officials from the National Statistics Offices and others. West African countries were particularly well represented. Their discussions were passionate: “We were mere spectators to the Millennium Development Goals. Now we want to actively push our specific challenges to the center of SDGs implementation,” said one. “Our motto is that no one is left behind,” said another.
At a meeting of the g7+ group of fragile states recently held in Nairobi, Bienvenu Hervé Kovoungbo looked back on his time in the same city, two years ago.
Back then, the citizens of his country, the Central African Republic (CAR), were caught in a fight between different militia groups. Bienvenu, who is the Director of Multilateral Cooperation and former Head of the Investment Budget Division in the Economy, Planning and International Cooperation Ministry, flew to Nairobi to attend a steering meeting of International Dialogue on Peacebuilding and Statebuilding. There, he appealed to g7+ colleagues and to donors to come to their assistance. After the meeting, he could not get back to the capital Bangui for two weeks, held up in Douala, Cameroon while his family had to flee their home and live with thousands of others in makeshift camps on the outskirts of the city.
The 2030 Agenda for Sustainable Development, approved in September, takes a holistic approach to development and presents no fewer than 17 global Sustainable Development Goals (SDGs). In committing to the goals and associated targets, the international community has agreed to a more ambitious development compact — that of ending poverty, protecting the planet while "leaving no one behind".
Despite this ambition, we may not know who precisely is being left out of our development programs or how to more effectively target our intended beneficiaries.