Financing the post-2015 Sustainable Development Goals:

a Rough Road-Map

Andrew Rogerson Senior Research Associate

13th November 2014

Finance flows and development goals  

3 Kharas, Prizzon and Rogerson, 2014 forthcoming  "Financing the post-2015 SDG: a Rough Roadmap

Concessional Public Finance

Market-Related Public Borrowing

Private Finance

Basic needs and social progress

Infrastructure for

sustainable development

Global public goods

The Missing Middle: International flows fall faster than tax

revenues rise

4

01

02

03

0%

GD

P

6 8 10 12GDP per capita (log)

Total Tax revenuesODA and OOF

$12,000 $4,000 $1,000

Kharas, Prizzon and Rogerson, 2014 forthcoming  "Financing the post-2015 SDG: a Rough Roadmap”

Top-line recommendations

5 Kharas, Prizzon and Rogerson, 2014 forthcoming  "Financing the post-2015 SDG: a Rough Roadmap

  Prioritise grant assistance to the least creditworthy, lowest fiscal capacity and

most vulnerable countries.

Within these countries, crowd in private actors via rule-of-law support and partnerships.

Mobilise much more market-related public finance and encourage leverage of private finance in specific thematic areas.

Finance international public assistance for mitigation mainly on market-related terms, to minimise allocation distortions. Target adaptation aid on LDCs/SIDS

ODI is the UK’s leading independent think tank on international development and humanitarian issues. We aim to inspire and inform policy and practice to reduce poverty by locking together high-quality applied research and practical policy advice.

The views presented here are those of the speaker, and do not necessarily represent the views of ODI or our partners.

Overseas Development Institute

203 Blackfriars Road, London, SE1 8NJ

T: +44 207 9220 300

www.odi.org.uk

a.rogerson@odi.org.uk

Market Aid Index

7 Kharas, Prizzon and Rogerson, 2014 forthcoming  "Financing the post-2015 SDG: a Rough Roadmap

Aust

ralia

Aust

ria

Belg

ium

Cana

da

Denm

ark

Finl

and

Fran

ce

Germ

any

Greec

e

Ireland

Italy

Japa

n

Kore

a

Luxe

mbo

urg

Nethe

rland

s

New Z

ealand

Norway

Portug

al

Spain

Swed

en

Switz

erland

Unite

d Ki

ngdo

m

Unite

d St

ates

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

ODA OOF

Other Recommendations (1)

9 Kharas, Prizzon and Rogerson, 2014 forthcoming  "Financing the post-2015 SDG: a Rough Roadmap”

Topic Recommendation1. Boost market-related lending by

MDBs A. Review demand for non-concessional

MDB financingB. Leverage receivables of concessional

windows C. Smoothen graduation to market-related

fundingD. Improve competitiveness of MDB

delivery

2. Boost access to market-related public finance more generally

A. Agree on a new international indicator for “official finance” (OF)

B. Set a new international target for OF 

Other Recommendations (2)

10 Kharas, Prizzon and Rogerson, 2014 forthcoming  "Financing the post-2015 SDG: a Rough Roadmap

Topic Recommendation3. Incentivize private finance and

align it with development objectives

 

A. Establish basic metrics for private finance for development (PFFD)

B. Recognise undisbursed official guarantees and other contingent finance

4. Minimize allocation distortions inherent in public climate mitigation finance

 

A. Finance mitigation mainly on market-related loan terms, with grants reserved for demonstration programmes in less creditworthy countries

B. Establish a target of 50% for the share of concessional assistance for adaptation going to LDCs and SIDS