This artifact is aim at the general public to have an awareness of the financing for development initiative undertaken by World Bank group The main sources of and trends in development finance and the need for innovative solutions to generate the resources required to implement the new global development agenda.

1. Development Finance Impact Project – Digital Artifact
Thisartifact isaim at the general publictohave anawarenessof the financingfordevelopmentinitiative
undertaken byWorldBankgroup The mainsourcesof andtrendsin developmentfinanceandthe need
for innovativesolutionstogenerate the resourcesrequiredtoimplementthe new global development
agenda.
IntroductiontoFinancingforDevelopment
Sustainable developmentis aterm widelyusedbypoliticiansall overthe worldeventhoughthe notion
isstill rathernewand lacksa uniforminterpretation.Importantasitis,the conceptof sustainable
development is still being developed and the definition of the term is constantly being revised,extended,
and refined.Usingthis book,youcantry to improve the definition asyoulearnmore aboutthe
relationships amongitsmaincomponents—the economic,social,andenvironmental factors of
sustainable development—andasyoudecide ontheirrelative significancebasedonyourownsystemof
values.
What are the sustainable developmentgoals?
The sustainable development goals (SDGs) are a new,universal setof goals,targetsandindicatorsthat
UN memberstateswill be expectedtouse toframe theiragendasandpolitical policiesoverthe next15
years.

2. The SDGs followandexpandonthe millennium development goals (MDGs), whichwere agreedby
governmentsin2001 andare due to expire atthe endof thisyear.
There isbroad agreementthat,while the MDGsprovidedafocal pointforgovernments –a framework
aroundwhichtheycoulddeveloppoliciesandoverseasaidprogrammesdesignedtoendpovertyand
improve the livesof poorpeople–as well asa rallyingpointforNGOsto holdthemto account,they
were toonarrow.

3. How will the goals be funded?
 That’s the trillion-dollarquestion.Roughcalculationsfromthe intergovernmental committeeof
expertsonsustainabledevelopmentfinancing have putthe costof providingasocial safetynet
to eradicate extreme povertyatabout$66bn (£43bn) a year,while annual investmentsin
improvinginfrastructure(water,agriculture,transport,power)couldbe uptoa total of $7tn
globally.
 In itsreportlast year,the committee saidpublicfinance andaidwouldbe central tosupportthe
implementationof the SDGs.But itinsistedthatmoneygeneratedfromthe private sector,
throughtax reforms,andthrougha crackdownon illicitfinancial flowsandcorruption,wasalso
vital.
Implementation
http://cepei.org/wp-content/uploads/2015/10/Getting-ready-for-SDG-implementation-in-Latin-
America.pdf
The Role of Public Sector Financingin Development
DomesticResource Mobilization(DRM) — the processinwhichcountriestransparentlyraise andspend
theirownfundsto provide fortheirpeople –isthe long-termpathtosustainable developmentfinance.
DRM doesn’thave to meannewtaxesor highertax rates — governmentsoftensee theirrevenuesrise
throughimprovedauditsorsimplifiedfilingprocesses.Improvementsintax compliance andrevenues
can, and oftendo,enable countriestolowertax rates.
https://www.usaid.gov/sites/default/files/documents/1865/120314_E3%20Brochure_Trifold_L_singles_
0.pdf

4. Better grasp the concept ofIllicitFinancial Flows and their impact on developmentfinance.
One trilliondollars,accordingtoestimatesbyGlobal FinancialIntegrity,isthe amountlosteveryyearby
developingcountriesthroughillicitfinancial outflowsconnectedtotrade mispricing,bribery,theft,kick-
backs,tax evasion,organizedcrime,andtraffickingof drugs,weapons,andhumans.Thismeansthatfor
everyone US dollardevelopingcountriesreceiveinexternal assistance,tenUSdollarsare lostto illicit
financial flows(IFFS).These estimatesshouldbe treatedwithcaution—itisdifficulttomeasure whatis
designedtoremainhidden.Butevenif we acceptthatthese estimatesare uncertain,noone doubts
that IFFsare huge.
IFFsdrainhard currency reserves,heighteninflation,reducetax collection,discourage investment,and
weakenfree trade. These practicesstifle povertyalleviationefforts,undermine the integrityof
government,anddamage the foundationsof society

5. Define Official DevelopmentAssistance (ODA)
The DAC definesODA as “those flowstocountriesandterritoriesonthe DACListof ODA Recipients and
to multilateralinstitutions whichare:
i. providedby official agencies,includingstate andlocal governments,orbytheirexecutive agencies;
and
ii. each transactionof which:
a) is administeredwiththe promotionof the economicdevelopmentandwelfare ofdeveloping
countriesas itsmainobjective; and
b) isconcessional incharacter and conveysa grant elementof atleast25 per cent(calculatedata rate
of discountof 10 percent).”
Source of fundsfor ODA and its role in achievingdevelopmentoutcomes.
National DevelopmentPlan
National DevelopmentPlans(NDPs) are the lynchpinformobilizingall sourcesof finance aimedat
achievingthe SDGs.The publicsectorimplementstheseplansbyprioritizinginvestmentareasof an
economywiththe highestdevelopmentreturns.ByimplementingNDPs, governmentsalsoplayarole in
establishingamore favorable investmentclimatetoattract private sectorfinancingthroughsupportive
governance structures,competitionpolicy,local capital marketdevelopmentandinfrastructure,aswell
as by supportingpublic-private partnerships

6. Private Finance for Development
AchievingPost-2015 developmentgoalswillrequire the mobilizationof resourcesfromprivate
sourcesincludingFDI,bankloans,bondissuance, institutional investorsandprivate transfers
Infrastructure and the debtmarkets
In the presentclimate,the keychallengeforthe debtmarketsremainsattractinginstitutional pension
fundmoney.Whilstpriortothe global financial crisisinstitutional moneywasinvesteddirectlyinto
projectswithmonolinecreditenhancement,orhelpedtorelieve banks’balance sheetsthrough
collateraliseddebtobligations,these structuresare nolongera realisticoption.
Large infrastructure debtportfoliosalesbybankstoinstitutionswill continue;however,all market
participantswill continue totryto create multi-investorinstitutional debtfundsorfindstructured
productsthat mitigate the riskof seniordebt.The capital debtmarketsneedtobe the prime source for
infrastructure refinancing;the rolloverof bankdebtcan’t be countedon to meetcurrentand future
needs.

7. Innovationandpartnershipsinfinancingdevelopment
http://www.mckinsey.com/insights/social_sector/innovative_development_financing

8. References:
http://www.pwc.com/gx/en/industries/capital-projects-infrastructure/future-of-infrastructure.html
http://devinit.org/#!/post/role-private-sector-financing-post-2015-agenda-sustainable-development
http://www.mckinsey.com/insights/social_sector/innovative_development_financing