2014 SDGs(지속가능발전목표) 주요문서 강독 자료집
주최: 국제개발협력민간협의회(KCOC) 국제개발협력시민사회포럼(KoFID) 지구촌빈곤퇴치시민네트워크(GCAP-Korea)
일시: 2014년 9월 15일(월), 9월 30일(화), 10월 14일(화) 08:00 – 09:30
장소: 국제개발협력민간협의회(KCOC) 교육센터
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주요 강독 문서 UN OWG-SDGs Proposal – 17 Goals and 169 Targets (July 2014)
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INTRODUCTION TO THE PROPOSAL OF THE OPEN WORKING GROUP FOR SUSTAINABLE DEVELOPMENT GOALS 1.
The Rio+20 outcome document, The future we want, inter alia, set out a mandate to establish an Open Working Group to develop a set of sustainable development goals for consideration and appropriate action by the General Assembly at its 68th session. It also provided the basis for their conceptualization. The Rio outcome gave the mandate that the SDGs should be coherent with and integrated into the UN development agenda beyond 2015.
2. Poverty eradication is the greatest global challenge facing the world today and an indispensable requirement for sustainable development. The Rio+20 outcome reiterated the commitment to freeing humanity from poverty and hunger as a matter of urgency. 3. Poverty eradication, changing unsustainable and promoting sustainable patterns of consumption and production and protecting and managing the natural resource base of economic and social development are the overarching objectives of and essential requirements for sustainable development. 4. People are at the centre of sustainable development and, in this regard, Rio+20 promised to strive for a world that is just, equitable and inclusive, and committed to work together to promote sustained and inclusive economic growth, social development and environmental protection and thereby to benefit all, in particular the children of the world, youth and future generations of the world without distinction of any kind such as age, sex, disability, culture, race, ethnicity, origin, migratory status, religion, economic or other status. 5. Rio+20 also reaffirmed all the principles of the Rio Declaration on Environment and Development, including, inter alia, the principle of common but differentiated responsibilities, as set out in principle 7 thereof. 6. It also reaffirmed the commitment to fully implement the Rio Declaration, Agenda 21, the Programme for the Further Implementation of Agenda 21, the Plan of Implementation of the World Summit on Sustainable Development (Johannesburg Plan of Implementation) and the Johannesburg Declaration on Sustainable Development, the Programme of Action for the Sustainable Development of Small Island Developing States (Barbados Programme of Action) and the Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of Small Island Developing States. It also reaffirmed the commitment to the full implementation of the Programme of Action for the Least Developed Countries for the Decade 2011–2020 (Istanbul Programme of Action), the Almaty Programme of Action: Addressing the Special Needs of Landlocked Developing Countries within a New Global Framework for Transit Transport Cooperation for Landlocked and Transit Developing Countries, the political declaration on Africa’s development needs and the New Partnership for Africa’s Development. It reaffirmed the commitments in the outcomes of all the major United Nations conferences and summits in the economic, social and environmental fields, including the United Nations Millennium Declaration, the 2005 World Summit Outcome, the Monterrey Consensus of the International Conference on Financing for Development, the Doha Declaration on Financing for Development, the outcome document of the High-level Plenary Meeting of the General 1
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Assembly on the Millennium Development Goals, the Programme of Action of the International Conference on Population and Development, the key actions for the further implementation of the Programme of Action of the International Conference on Population and Development and the Beijing Declaration and Platform for Action, and the outcome documents of their review conferences. The Outcome document of the September 2013 special event to follow up efforts made towards achieving the Millennium Development Goals reaffirmed, inter alia, the determination to craft a strong post-2015 development agenda. The commitment to migration and development was reaffirmed in the Declaration of the High-Level Dialogue on International Migration and Development. 7. Rio+20 outcome reaffirmed the need to be guided by the purposes and principles of the Charter of the United Nations, with full respect for international law and its principles. It reaffirmed the importance of freedom, peace and security, respect for all human rights, including the right to development and the right to an adequate standard of living, including the right to food and water, the rule of law, good governance, gender equality, women’s empowerment and the overall commitment to just and democratic societies for development. It also reaffirmed the importance of the Universal Declaration of Human Rights, as well as other international instruments relating to human rights and international law. 8. The OWG underscored that the global nature of climate change calls for the widest possible cooperation by all countries and their participation in an effective and appropriate international response, with a view to accelerating the reduction of global greenhouse gas emissions. It recalled that the United Nations Framework Convention on Climate Change provides that parties should protect the climate system for the benefit of present and future generations of humankind on the basis of equity and in accordance with their common but differentiated responsibilities and respective capabilities. It noted with grave concern the significant gap between the aggregate effect of mitigation pledges by parties in terms of global annual emissions of greenhouse gases by 2020 and aggregate emission pathways consistent with having a likely chance of holding the increase in global average temperature below 2° C, or 1.5° C above pre-industrial levels and it reaffirmed that the ultimate objective under the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. 9. Planet Earth and its ecosystems are our home and that “Mother Earth” is a common expression in a number of countries and regions, and Rio+20 noted that some countries recognize the rights of nature in the context of the promotion of sustainable development. Rio+20 affirmed the conviction that in order to achieve a just balance among the economic, social and environmental needs of present and future generations, it is necessary to promote harmony with nature. It acknowledged the natural and cultural diversity of the world, and recognized that all cultures and civilizations can contribute to sustainable development. 10. Rio+20 recognized that each country faces specific challenges to achieve sustainable development. It underscored the special challenges facing the most vulnerable countries and, in particular, African countries, least developed countries, landlocked developing countries and small island developing States, as well as the specific challenges facing the middleincome countries. Countries in situations of conflict also need special attention. 2
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11. Rio+20 reaffirmed the commitment to strengthen international cooperation to address the persistent challenges related to sustainable development for all, in particular in developing countries. In this regard, it reaffirmed the need to achieve economic stability, sustained economic growth, the promotion of social equity and the protection of the environment, while enhancing gender equality, womenâ&#x20AC;&#x2122;s empowerment and equal employment for all, and the protection, survival and development of children to their full potential, including through education. 12. Each country has primary responsibility for its own economic and social development and the role of national policies, domestic resources and development strategies cannot be overemphasized. Developing countries need additional resources for sustainable development. There is a need for significant mobilization of resources from a variety of sources and the effective use of financing, in order to promote sustainable development. Rio+20 affirms the commitment to reinvigorating the global partnership for sustainable development and to mobilizing the necessary resources for its implementation. The report of the Intergovernmental Committee of Experts on Sustainable Development Financing will propose options for a sustainable development financing strategy. The substantive outcome of the third International Conference on Financing for Development in July 2015 will assess the progress made in the implementation of the Monterrey Consensus and the Doha Declaration. Good governance and the rule of law at the national and international levels are essential for sustained, inclusive and equitable economic growth, sustainable development and the eradication of poverty and hunger. 13. Rio+20 reaffirmed that there are different approaches, visions, models and tools available to each country, in accordance with its national circumstances and priorities, to achieve sustainable development in its three dimensions which is our overarching goal. 14. The implementation of sustainable development goals will depend on a global partnership for sustainable development with the active engagement of governments, as well as civil society, the private sector, and the United Nations system. A robust mechanism of implementation review will be essential for the success of the SDGs. The General Assembly, the ECOSOC system and the High Level Political Forum will play a key role in this regard. 15. Rio+20 reiterated the commitment to take further effective measures and actions, in conformity with international law, to remove the obstacles to the full realization of the right of self-determination of peoples living under colonial and foreign occupation, which continue to adversely affect their economic and social development as well as their environment, are incompatible with the dignity and worth of the human person and must be combated and eliminated. 16. Rio+20 reaffirmed that, in accordance with the Charter, this shall not be construed as authorizing or encouraging any action against the territorial integrity or political independence of any State. It resolved to take further effective measures and actions, in conformity with international law, to remove obstacles and constraints, strengthen support
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and meet the special needs of people living in areas affected by complex humanitarian emergencies and in areas affected by terrorism. 17. In order to monitor the implementation of the SDGs, it will be important to improve the availability of and access to data and statistics disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts to support the support the monitoring of the implementation of the SDGs. There is a need to take urgent steps to improve the quality, coverage and availability of disaggregated data to ensure that no one is left behind. 18. Sustainable Development Goals are accompanied by targets and will be further elaborated through indicators focused on measurable outcomes. They are action oriented, global in nature and universally applicable. They take into account different national realities, capacities and levels of development and respect national policies and priorities. They build on the foundation laid by the MDGs, seek to complete the unfinished business of the MDGs, and respond to new challenges. These goals constitute an integrated, indivisible set of global priorities for sustainable development. Targets are defined as aspirational global targets, with each government setting its own national targets guided by the global level of ambition but taking into account national circumstances. The goals and targets integrate economic, social and environmental aspects and recognize their interlinkages in achieving sustainable development in all its dimensions.
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Sustainable Development Goals Goal 1. End poverty in all its forms everywhere Goal 2. End hunger, achieve food security and improved nutrition, and promote sustainable agriculture Goal 3. Ensure healthy lives and promote well-being for all at all ages Goal 4. Ensure inclusive and equitable quality education and promote life-long learning opportunities for all Goal 5. Achieve gender equality and empower all women and girls Goal 6. Ensure availability and sustainable management of water and sanitation for all Goal 7. Ensure access to affordable, reliable, sustainable, and modern energy for all Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation Goal 10. Reduce inequality within and among countries Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable Goal 12. Ensure sustainable consumption and production patterns Goal 13. Take urgent action to combat climate change and its impacts* *Acknowledging that the UNFCCC is the primary international, intergovernmental forum for negotiating the global response to climate change. Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels Goal 17. Strengthen the means of implementation and revitalize the global partnership for sustainable development
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Sustainable Development Goals and targets Goal 1. End poverty in all its forms everywhere 1.1 by 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day 1.2 by 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions 1.3
implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable
by 2030 ensure that all men and women, particularly the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services including microfinance
1.5 by 2030 build the resilience of the poor and those in vulnerable situations, and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters
1.a. ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation to provide adequate and predictable means for developing countries, in particular LDCs, to implement programmes and policies to end poverty in all its dimensions 1.b create sound policy frameworks, at national, regional and international levels, based on pro-poor and gender-sensitive development strategies to support accelerated investments in poverty eradication actions Goal 2. End hunger, achieve food security and improved nutrition, and promote sustainable agriculture 2.1
by 2030 end hunger and ensure access by all people, in particular the poor and people in vulnerable situations including infants, to safe, nutritious and sufficient food all year round
by 2030 end all forms of malnutrition, including achieving by 2025 the internationally agreed targets on stunting and wasting in children under five years of age, and address the nutritional needs of adolescent girls, pregnant and lactating women, and older persons
by 2030 double the agricultural productivity and the incomes of small-scale food producers, particularly women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment 6
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by 2030 ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters, and that progressively improve land and soil quality
by 2020 maintain genetic diversity of seeds, cultivated plants, farmed and domesticated animals and their related wild species, including through soundly managed and diversified seed and plant banks at national, regional and international levels, and ensure access to and fair and equitable sharing of benefits arising from the utilization of genetic resources and associated traditional knowledge as internationally agreed
increase investment, including through enhanced international cooperation, in rural infrastructure, agricultural research and extension services, technology development, and plant and livestock gene banks to enhance agricultural productive capacity in developing countries, in particular in least developed countries
2.b. correct and prevent trade restrictions and distortions in world agricultural markets including by the parallel elimination of all forms of agricultural export subsidies and all export measures with equivalent effect, in accordance with the mandate of the Doha Development Round 2.c. adopt measures to ensure the proper functioning of food commodity markets and their derivatives, and facilitate timely access to market information, including on food reserves, in order to help limit extreme food price volatility Goal 3. Ensure healthy lives and promote well-being for all at all ages 3.1
by 2030 reduce the global maternal mortality ratio to less than 70 per 100,000 live births
by 2030 end preventable deaths of newborns and under-five children
by 2030 end the epidemics of AIDS, tuberculosis, malaria, and neglected tropical diseases and combat hepatitis, water-borne diseases, and other communicable diseases
by 2030 reduce by one-third pre-mature mortality from non-communicable diseases (NCDs) through prevention and treatment, and promote mental health and wellbeing
strengthen prevention and treatment of substance abuse, including narcotic drug abuse and harmful use of alcohol
3.6 by 2020 halve global deaths and injuries from road traffic accidents
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by 2030 ensure universal access to sexual and reproductive health care services, including for family planning, information and education, and the integration of reproductive health into national strategies and programmes
achieve universal health coverage (UHC), including financial risk protection, access to quality essential health care services, and access to safe, effective, quality, and affordable essential medicines and vaccines for all
by 2030 substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water, and soil pollution and contamination
strengthen implementation of the Framework Convention on Tobacco Control in all countries as appropriate
3.b support research and development of vaccines and medicines for the communicable and non-communicable diseases that primarily affect developing countries, provide access to affordable essential medicines and vaccines, in accordance with the Doha Declaration which affirms the right of developing countries to use to the full the provisions in the TRIPS agreement regarding flexibilities to protect public health and, in particular, provide access to medicines for all 3.c
increase substantially health financing and the recruitment, development and training and retention of the health workforce in developing countries, especially in LDCs and SIDS
3.d strengthen the capacity of all countries, particularly developing countries, for early warning, risk reduction, and management of national and global health risks Goal 4. Ensure inclusive and equitable quality education and promote life-long learning opportunities for all 4.1
by 2030, ensure that all girls and boys complete free, equitable and quality primary and secondary education leading to relevant and effective learning outcomes
by 2030 ensure that all girls and boys have access to quality early childhood development, care and pre-primary education so that they are ready for primary education
4.3 by 2030 ensure equal access for all women and men to affordable quality technical, vocational and tertiary education, including university 4.4 by 2030, increase by x% the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship 4.5 by 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples, and children in vulnerable situations 8
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by 2030 ensure that all youth and at least x% of adults, both men and women, achieve literacy and numeracy
by 2030 ensure all learners acquire knowledge and skills needed to promote sustainable development, including among others through education for sustainable development and sustainable lifestyles, human rights, gender equality, promotion of a culture of peace and non-violence, global citizenship, and appreciation of cultural diversity and of cultureâ&#x20AC;&#x2122;s contribution to sustainable development
build and upgrade education facilities that are child, disability and gender sensitive and provide safe, non-violent, inclusive and effective learning environments for all
4.b by 2020 expand by x% globally the number of scholarships for developing countries in particular LDCs, SIDS and African countries to enrol in higher education, including vocational training, ICT, technical, engineering and scientific programmes in developed countries and other developing countries 4.c
by 2030 increase by x% the supply of qualified teachers, including through international cooperation for teacher training in developing countries, especially LDCs and SIDS
Goal 5. Achieve gender equality and empower all women and girls 5.1
end all forms of discrimination against all women and girls everywhere
eliminate all forms of violence against all women and girls in public and private spheres, including trafficking and sexual and other types of exploitation
eliminate all harmful practices, such as child, early and forced marriage and female genital mutilations
recognize and value unpaid care and domestic work through the provision of public services, infrastructure and social protection policies, and the promotion of shared responsibility within the household and the family as nationally appropriate
ensure womenâ&#x20AC;&#x2122;s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life
ensure universal access to sexual and reproductive health and reproductive rights as agreed in accordance with the Programme of Action of the ICPD and the Beijing Platform for Action and the outcome documents of their review conferences
undertake reforms to give women equal rights to economic resources, as well as access to 9
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ownership and control over land and other forms of property, financial services, inheritance, and natural resources in accordance with national laws 5.b
enhance the use of enabling technologies, in particular ICT, to promote womenâ&#x20AC;&#x2122;s empowerment
adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels
Goal 6. Ensure availability and sustainable management of water and sanitation for all 6.1
by 2030, achieve universal and equitable access to safe and affordable drinking water for all
by 2030, achieve access to adequate and equitable sanitation and hygiene for all, and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations
by 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater, and increasing recycling and safe reuse by x% globally
by 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity, and substantially reduce the number of people suffering from water scarcity
by 2030 implement integrated water resources management at all levels, including through transboundary cooperation as appropriate
by 2020 protect and restore water-related ecosystems, including mountains, forests, wetlands, rivers, aquifers and lakes
by 2030, expand international cooperation and capacity-building support to developing countries in water and sanitation related activities and programmes, including water harvesting, desalination, water efficiency, wastewater treatment, recycling and reuse technologies
support and strengthen the participation of local communities for improving water and sanitation management
Goal 7. Ensure access to affordable, reliable, sustainable, and modern energy for all 7.1 by 2030 ensure universal access to affordable, reliable, and modern energy services 10
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increase substantially the share of renewable energy in the global energy mix by 2030
double the global rate of improvement in energy efficiency by 2030
by 2030 enhance international cooperation to facilitate access to clean energy research and technologies, including renewable energy, energy efficiency, and advanced and cleaner fossil fuel technologies, and promote investment in energy infrastructure and clean energy technologies
7.b by 2030 expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries, particularly LDCs and SIDS Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 8.1
sustain per capita economic growth in accordance with national circumstances, and in particular at least 7% per annum GDP growth in the least-developed countries
achieve higher levels of productivity of economies through diversification, technological upgrading and innovation, including through a focus on high value added and labourintensive sectors
promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage formalization and growth of micro-, small- and medium-sized enterprises including through access to financial services
8.4 improve progressively through 2030 global resource efficiency in consumption and production, and endeavour to decouple economic growth from environmental degradation in accordance with the 10-year framework of programmes on sustainable consumption and production with developed countries taking the lead 8.5 by 2030 achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value 8.6 by 2020 substantially reduce the proportion of youth not in employment, education or training 8.7 take immediate and effective measures to secure the prohibition and elimination of the worst forms of child labour, eradicate forced labour, and by 2025 end child labour in all its forms including recruitment and use of child soldiers
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protect labour rights and promote safe and secure working environments of all workers, including migrant workers, particularly women migrants, and those in precarious employment
by 2030 devise and implement policies to promote sustainable tourism which creates jobs, promotes local culture and products
8.10 strengthen the capacity of domestic financial institutions to encourage and to expand access to banking, insurance and financial services for all
increase Aid for Trade support for developing countries, particularly LDCs, including through the Enhanced Integrated Framework for LDCs
by 2020 develop and operationalize a global strategy for youth employment and implement the ILO Global Jobs Pact
Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation 9.1
develop quality, reliable, sustainable and resilient infrastructure, including regional and trans-border infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all
promote inclusive and sustainable industrialization, and by 2030 raise significantly industryâ&#x20AC;&#x2122;s share of employment and GDP in line with national circumstances, and double its share in LDCs
increase the access of small-scale industrial and other enterprises, particularly in developing countries, to financial services including affordable credit and their integration into value chains and markets
by 2030 upgrade infrastructure and retrofit industries to make them sustainable, with increased resource use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, all countries taking action in accordance with their respective capabilities
enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, particularly developing countries, including by 2030 encouraging innovation and increasing the number of R&D workers per one million people by x% and public and private R&D spending
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facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, LDCs, LLDCs and SIDS
support domestic technology development, research and innovation in developing countries including by ensuring a conducive policy environment for inter alia industrial diversification and value addition to commodities
significantly increase access to ICT and strive to provide universal and affordable access to internet in LDCs by 2020
Goal 10. Reduce inequality within and among countries 10.1
by 2030 progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average
by 2030 empower and promote the social, economic and political inclusion of all irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
ensure equal opportunity and reduce inequalities of outcome, including through eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and actions in this regard
adopt policies especially fiscal, wage, and social protection policies and progressively achieve greater equality
improve regulation and monitoring of global financial markets and institutions and strengthen implementation of such regulations
ensure enhanced representation and voice of developing countries in decision making in global international economic and financial institutions in order to deliver more effective, credible, accountable and legitimate institutions
facilitate orderly, safe, regular and responsible migration and mobility of people, including through implementation of planned and well-managed migration policies
implement the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with WTO agreements
encourage ODA and financial flows, including foreign direct investment, to states where the need is greatest, in particular LDCs, African countries, SIDS, and LLDCs, in accordance with their national plans and programmes
by 2030, reduce to less than 3% the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5% 13
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Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable 11.1
by 2030, ensure access for all to adequate, safe and affordable housing and basic services, and upgrade slums
by 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons
by 2030 enhance inclusive and sustainable urbanization and capacities for participatory, integrated and sustainable human settlement planning and management in all countries
strengthen efforts to protect and safeguard the worldâ&#x20AC;&#x2122;s cultural and natural heritage
by 2030 significantly reduce the number of deaths and the number of affected people and decrease by y% the economic losses relative to GDP caused by disasters, including water-related disasters, with the focus on protecting the poor and people in vulnerable situations
by 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality, municipal and other waste management
by 2030, provide universal access to safe, inclusive and accessible, green and public spaces, particularly for women and children, older persons and persons with disabilities
support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning
by 2020, increase by x% the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, develop and implement in line with the forthcoming Hyogo Framework holistic disaster risk management at all levels
support least developed countries, including through financial and technical assistance, for sustainable and resilient buildings utilizing local materials
Goal 12. Ensure sustainable consumption and production patterns 12.1
implement the 10-Year Framework of Programmes on sustainable consumption and production (10YFP), all countries taking action, with developed countries taking the lead, taking into account the development and capabilities of developing countries 14
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by 2030 achieve sustainable management and efficient use of natural resources
by 2030 halve per capita global food waste at the retail and consumer level, and reduce food losses along production and supply chains including post-harvest losses
by 2020 achieve environmentally sound management of chemicals and all wastes throughout their life cycle in accordance with agreed international frameworks and significantly reduce their release to air, water and soil to minimize their adverse impacts on human health and the environment
by 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse
encourage companies, especially large and trans-national companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle
promote public procurement practices that are sustainable in accordance with national policies and priorities
by 2030 ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature
support developing countries to strengthen their scientific and technological capacities to move towards more sustainable patterns of consumption and production
develop and implement tools to monitor sustainable development impacts for sustainable tourism which creates jobs, promotes local culture and products
rationalize inefficient fossil fuel subsidies that encourage wasteful consumption by removing market distortions, in accordance with national circumstances, including by restructuring taxation and phasing out those harmful subsidies, where they exist, to reflect their environmental impacts, taking fully into account the specific needs and conditions of developing countries and minimizing the possible adverse impacts on their development in a manner that protects the poor and the affected communities
Goal 13. Take urgent action to combat climate change and its impacts * *Acknowledging that the UNFCCC is the primary international, intergovernmental forum for negotiating the global response to climate change. 13.1
strengthen resilience and adaptive capacity to climate related hazards and natural disasters in all countries
integrate climate change measures into national policies, strategies, and planning 15
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improve education, awareness raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning
implement the commitment undertaken by developed country Parties to the UNFCCC to a goal of mobilizing jointly USD100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible
Promote mechanisms for raising capacities for effective climate change related planning and management, in LDCs, including focusing on women, youth, local and marginalized communities
Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development 14.1
by 2025, prevent and significantly reduce marine pollution of all kinds, particularly from land-based activities, including marine debris and nutrient pollution
by 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration, to achieve healthy and productive oceans
minimize and address the impacts of ocean acidification, including through enhanced scientific cooperation at all levels
by 2020, effectively regulate harvesting, and end overfishing, illegal, unreported and unregulated (IUU) fishing and destructive fishing practices and implement science-based management plans, to restore fish stocks in the shortest time feasible at least to levels that can produce maximum sustainable yield as determined by their biological characteristics
by 2020, conserve at least 10 per cent of coastal and marine areas, consistent with national and international law and based on best available scientific information
by 2020, prohibit certain forms of fisheries subsidies which contribute to overcapacity and overfishing, and eliminate subsidies that contribute to IUU fishing, and refrain from introducing new such subsidies, recognizing that appropriate and effective special and differential treatment for developing and least developed countries should be an integral part of the WTO fisheries subsidies negotiation
taking into account ongoing WTO negotiations and WTO Doha Development Agenda and Hong Kong Ministerial Mandate
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by 2030 increase the economic benefits to SIDS and LDCs from the sustainable use of marine resources, including through sustainable management of fisheries, aquaculture and tourism
increase scientific knowledge, develop research capacities and transfer marine technology taking into account the Intergovernmental Oceanographic Commission Criteria and Guidelines on the Transfer of Marine Technology, in order to improve ocean health and to enhance the contribution of marine biodiversity to the development of developing countries, in particular SIDS and LDCs
provide access of small-scale artisanal fishers to marine resources and markets
ensure the full implementation of international law, as reflected in UNCLOS for states parties to it, including, where applicable, existing regional and international regimes for the conservation and sustainable use of oceans and their resources by their parties
Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss 15.1
by 2020 ensure conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands, in line with obligations under international agreements
by 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests, and increase afforestation and reforestation by x% globally
by 2020, combat desertification, and restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land-degradation neutral world
by 2030 ensure the conservation of mountain ecosystems, including their biodiversity, to enhance their capacity to provide benefits which are essential for sustainable development
take urgent and significant action to reduce degradation of natural habitat, halt the loss of biodiversity, and by 2020 protect and prevent the extinction of threatened species
ensure fair and equitable sharing of the benefits arising from the utilization of genetic resources, and promote appropriate access to genetic resources
take urgent action to end poaching and trafficking of protected species of flora and fauna, and address both demand and supply of illegal wildlife products 17
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by 2020 introduce measures to prevent the introduction and significantly reduce the impact of invasive alien species on land and water ecosystems, and control or eradicate the priority species
by 2020, integrate ecosystems and biodiversity values into national and local planning, development processes and poverty reduction strategies, and accounts
mobilize and significantly increase from all sources financial resources to conserve and sustainably use biodiversity and ecosystems
mobilize significantly resources from all sources and at all levels to finance sustainable forest management, and provide adequate incentives to developing countries to advance sustainable forest management, including for conservation and reforestation
enhance global support to efforts to combat poaching and trafficking of protected species, including by increasing the capacity of local communities to pursue sustainable livelihood opportunities
Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels 16.1
significantly reduce all forms of violence and related death rates everywhere
end abuse, exploitation, trafficking and all forms of violence and torture against children
promote the rule of law at the national and international levels, and ensure equal access to justice for all
by 2030 significantly reduce illicit financial and arms flows, strengthen recovery and return of stolen assets, and combat all forms of organized crime
substantially reduce corruption and bribery in all its forms
develop effective, accountable and transparent institutions at all levels
ensure responsive, inclusive, participatory and representative decision-making at all levels
broaden and strengthen the participation of developing countries in the institutions of global governance
by 2030 provide legal identity for all including birth registration 18
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16.10 ensure public access to information and protect fundamental freedoms, in accordance with national legislation and international agreements
strengthen relevant national institutions, including through international cooperation, for building capacities at all levels, in particular in developing countries, for preventing violence and combating terrorism and crime
promote and enforce non-discriminatory laws and policies for sustainable development
Goal 17. Strengthen the means of implementation and revitalize the global partnership for sustainable development Finance 17.1
strengthen domestic resource mobilization, including through international support to developing countries to improve domestic capacity for tax and other revenue collection
developed countries to implement fully their ODA commitments, including to provide 0.7% of GNI in ODA to developing countries of which 0.15-0.20% to least-developed countries
mobilize additional financial resources for developing countries from multiple sources
assist developing countries in attaining long-term debt sustainability through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries (HIPC) to reduce debt distress
adopt and implement investment promotion regimes for LDCs Technology
enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation, and enhance knowledge sharing on mutually agreed terms, including through improved coordination among existing mechanisms, particularly at UN level, and through a global technology facilitation mechanism when agreed
promote development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries on favourable terms, including on concessional and preferential terms, as mutually agreed
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fully operationalize the Technology Bank and STI (Science, Technology and Innovation) capacity building mechanism for LDCs by 2017, and enhance the use of enabling technologies in particular ICT Capacity building
enhance international support for implementing effective and targeted capacity building in developing countries to support national plans to implement all sustainable development goals, including through North-South, South-South, and triangular cooperation Trade
17.10 promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system under the WTO including through the conclusion of negotiations within its Doha Development Agenda 17.11 increase significantly the exports of developing countries, in particular with a view to doubling the LDC share of global exports by 2020 17.12 realize timely implementation of duty-free, quota-free market access on a lasting basis for all least developed countries consistent with WTO decisions, including through ensuring that preferential rules of origin applicable to imports from LDCs are transparent and simple, and contribute to facilitating market access Systemic issues Policy and institutional coherence 17.13 enhance global macroeconomic stability including through policy coordination and policy coherence 17.14 enhance policy coherence for sustainable development 17.15 respect each countryâ&#x20AC;&#x2122;s policy space and leadership to establish and implement policies for poverty eradication and sustainable development Multi-stakeholder partnerships 17.16 enhance the global partnership for sustainable development complemented by multistakeholder partnerships that mobilize and share knowledge, expertise, technologies and financial resources to support the achievement of sustainable development goals in all countries, particularly developing countries
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17.17 encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships Data, monitoring and accountability 17.18 by 2020, enhance capacity building support to developing countries, including for LDCs and SIDS, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts 17.19 by 2030, build on existing initiatives to develop measurements of progress on sustainable development that complement GDP, and support statistical capacity building in developing countries
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유엔 관련 문서
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Millennium Development Goals (MDGs) Goals and Targets (from the Millennium Declaration) Goal 1: Eradicate extreme poverty and hunger
Indicators for monitoring progress
Target 1: Halve, between 1990 and 2015, the proportion of people whose income is less than one dollar a day
1. 2. 3.
Proportion of population below $1 (PPP) per daya Poverty gap ratio [incidence x depth of poverty] Share of poorest quintile in national consumption
Target 2: Halve, between 1990 and 2015, the proportion of people who suffer from hunger
Prevalence of underweight children under-five years of age Proportion of population below minimum level of dietary energy consumption
Goal 2: Achieve universal primary education Target 3: Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling
6. 7. 8.
Net enrolment ratio in primary education Proportion of pupils starting grade 1 who reach grade 5 Literacy rate of 15-24 year-olds
Goal 3: Promote gender equality and empower women Target 4: Eliminate gender disparity in primary and secondary education preferably by 2005 and to all levels of education no later than 2015
Ratios of girls to boys in primary, secondary and tertiary education 10. Ratio of literate females to males of 15-24 year-olds 11. Share of women in wage employment in the nonagricultural sector 12. Proportion of seats held by women in national parliament
Goal 4: Reduce child mortality Target 5: Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate
13. Under-five mortality rate 14. Infant mortality rate 15. Proportion of 1 year-old children immunised against measles
Goal 5: Improve maternal health Target 6: Reduce by three-quarters, between 1990 and 2015, the maternal mortality ratio
16. Maternal mortality ratio 17. Proportion of births attended by skilled health personnel
Goal 6: Combat HIV/AIDS, malaria and other diseases Target 7: Have halted by 2015 and begun to reverse the spread of HIV/AIDS
18. HIV prevalence among 15-24 year old pregnant women 19. Condom use rate of the contraceptive prevalence rateb 20. Number of children orphaned by HIV/AIDSc
Target 8: Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases
21. Prevalence and death rates associated with malaria 22. Proportion of population in malaria risk areas using d effective malaria prevention and treatment measures 23. Prevalence and death rates associated with tuberculosis 24. Proportion of tuberculosis cases detected and cured under directly observed treatment short course (DOTS)
Goal 7: Ensure environmental sustainability Target 9: Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources
25. Proportion of land area covered by forest 26. Ratio of area protected to maintain biological diversity to surface area 27. Energy use (kg oil equivalent) per $1 GDP (PPP) 28. Carbon dioxide emissions (per capita) and consumption of ozone-depleting CFCs (ODP tons) 29. Proportion of population using solid fuels
Target 10: Halve, by 2015, the proportion of people without sustainable access to safe drinking water
30. Proportion of population with sustainable access to an improved water source, urban and rural
Target 11 By 2020, to have achieved a significant improvement in the lives of at least 100 million slum dwellers
31. Proportion of urban population with access to improved sanitation 32. Proportion of households with access to secure tenure (owned or rented)
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Goal 8: Develop a global partnership for development Target 12: Develop further an open, rule-based, predictable, non-discriminatory trading and financial system Includes a commitment to good governance, development, and poverty reduction – both nationally and internationally
Target 13: Address the special needs of the least developed countries Includes: tariff and quota free access for least developed countries' exports; enhanced programme of debt relief for HIPC and cancellation of official bilateral debt; and more generous ODA for countries committed to poverty reduction
Target 14: Address the special needs of landlocked countries and small island developing States (through the Programme of Action for the Sustainable Development of Small Island Developing States and the outcome of the twenty-second special session of the General Assembly)
Target 15: Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term
Some of the indicators listed below are monitored separately for the least developed countries (LDCs), Africa, landlocked countries and small island developing States. Official development assistance 33. Net ODA, total and to LDCs, as percentage of OECD/DAC donors’ gross national income 34. Proportion of total bilateral, sector-allocable ODA of OECD/DAC donors to basic social services (basic education, primary health care, nutrition, safe water and sanitation) 35. Proportion of bilateral ODA of OECD/DAC donors that is untied 36. ODA received in landlocked countries as proportion of their GNIs 37. ODA received in small island developing States as proportion of their GNIs Market access 38. Proportion of total developed country imports (by value and excluding arms) from developing countries and LDCs, admitted free of duties 39. Average tariffs imposed by developed countries on agricultural products and textiles and clothing from developing countries 40. Agricultural support estimate for OECD countries as percentage of their GDP e 41. Proportion of ODA provided to help build trade capacity Debt sustainability 42. Total number of countries that have reached their HIPC decision points and number that have reached their HIPC completion points (cumulative) 43. Debt relief committed under HIPC initiative, US$ 44. Debt service as a percentage of exports of goods and services
Target 16: In co-operation with developing countries, develop and implement strategies for decent and productive work for youth
45. Unemployment rate of 15-24 year-olds, each sex and totalf
Target 17: In co-operation with pharmaceutical companies, provide access to affordable, essential drugs in developing countries
46. Proportion of population with access to affordable essential drugs on a sustainable basis
Target 18: In co-operation with the private sector, make available the benefits of new technologies, especially information and communications
47. Telephone lines and cellular subscribers per 100 population 48. Personal computers in use per 100 population and Internet users per 100 population
The Millennium Development Goals and targets come from the Millennium Declaration signed by 189 countries, including 147 Heads of State, in September 2000 (www.un.org/documents/ga/res/55/a55r002.pdf - A/RES/55/2). The goals and targets are inter-related and should be seen as a whole. They represent a partnership between the developed countries and the developing countries determined, as the Declaration states, “to create an environment – at the national and global levels alike – which is conducive to development and the elimination of poverty.” a
For monitoring country poverty trends, indicators based on national poverty lines should be used, where available.
Amongst contraceptive methods, only condoms are effective in preventing HIV transmission. The contraceptive prevalence rate is also useful in tracking progress in other health, gender and poverty goals. Because the condom use rate is only measured amongst women in union, it will be supplemented by an indicator on condom use in high risk situations. These indicators will be augmented with an indicator of knowledge and misconceptions regarding HIV/AIDS by 15-24 year-olds (UNICEF – WHO).
To be measured by the ratio of proportion of orphans to non-orphans aged 10-14 who are attending school.
Prevention to be measured by the % of under 5s sleeping under insecticide treated bednets; treatment to be measured by % of under 5s who are appropriately treated.
OECD and WTO are collecting data that will be available from 2001 onwards.
An improved measure of the target is under development by ILO for future years.
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Empower women and girls Provide quality education and lifelong learning Improve health End hunger and malnutrition. Address demographic challenges Enhance the positive contribution of migrants Meet the challenges of urbanization
Empower girls and women and achieve gender equality. Provide Quality Education and lifelong learning. Ensure healthy Lives Ensure food security and good nutrition
Ensure stable and
Achieve universal access to water and sanitation Manage natural resource assets sustainably Address climate change Address environmental challenges
Secure sustainable energy Promote inclusive and Create Jobs, Sustainable sustainable growth and decent livelihoods and equitable employment growth.
UN SG (15) Eradicate poverty in all its forms Tackle exclusion and inequality
HLP (12) End Poverty
Build peace and effective peaceful society. governance based on the rule of Accountability Ensure Good Governance law and sound Institutions Mechanisms,, and effective institutions Foster a renewed global Governance partnership and Means of Create a global enabling environment and catalyse Strengthen the international Implementation long term finance. development Cooperation framework
General / Cross-cutting
Ensure access to affordable, reliable, sustainable, and modern energy for all (7) Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all (8) Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation (9) Ensure sustainable consumption and production patterns (12) Ensure availability and sustainable management of water and sanitation for all (6) Take urgent action to combat climate change and its impacts (13) Conserve and sustainably use the oceans, seas and marine resources for sustainable development (14) Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss (15) Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels (16) Strengthen the means of implementation and revitalize the global partnership for sustainable development (17)
End hunger, achieve food security and improved nutrition, and promote sustainable agriculture (2) Ensure healthy lives and promote well-being for all at all ages (3) Ensure inclusive and equitable quality education and promote life-long learning opportunities for all (4) Achieve gender equality and empower all women and girls (5) Make cities and human settlements inclusive, safe, resilient and sustainable (11)
OWG‐SDGs (17) End poverty in all its forms everywhere (1) Reduce inequality within and among countries (10)
List of Proposed Post‐2015 Goals by HLP, UNSG and OWG‐SDGs
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THE SECRETARY-GENERAL -MESSAGE ON THE 500-DAY MARK TO THE CONCLUSION OF THE MILLENNIUM DEVELOPMENT GOALS “500 DAYS OF ACTION TO BUILD A BETTER WORLD” 18 August 2014 There are many fires raging around the world today -- political turmoil, bloodshed, public health emergencies and human rights abuses. But there also burns a flame of hope – encouraging progress in the global drive to improve the lives of the world’s poorest through the Millennium Development Goals. Adopted by world leaders in the year 2000, the MDGs are an ambitious 15-year roadmap to fight poverty, hunger and disease, protect the environment and expand education, basic health and women’s empowerment. This week marks a milestone on the journey: we are now 500 days from the conclusion of the MDGs. Quietly yet cumulatively, against the predictions of cynics, the MDGs have helped unite, inspire and transform. Global poverty has been cut in half. More girls are in school. More families have better access to improved water sources. More mothers are surviving child birth and more children are living healthier lives. We are making huge inroads in fighting malaria, tuberculosis and other killer diseases. I have met many individuals who owe their survival to this campaign. Yet millions still struggle against extreme poverty and inequality. Too many communities have no proper sanitation. Too many families are still being left behind. And our world faces the clear and present danger of climate change. Now is the time for MDG Momentum. The ideas and inspiration of young people will be especially critical in this effort and their role must grow even more. That is why I will mark the 500-day MDG moment at United Nations Headquarters with education advocate Malala Yousafzai and 500 young people. Action in four areas can help fuel progress: First: making strategic investments in health, education, energy and sanitation, with a special focus on empowering women and girls, which boosts results across the board. Second: focusing on the poorest and most vulnerable countries, communities and social groups that have the toughest road to progress despite their best efforts.
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Third: keeping our financial promises. These are difficult budgetary times. But budgets should never be balanced on the backs of societyâ&#x20AC;&#x2122;s weakest individuals. Fourth: deepening cooperation among governments, civil society, the private sector and other networks around the world that have helped make the MDGs the most successful global antipoverty push in history. The challenges are daunting. Yet we have many more tools at our disposal than at the turn of the millennium -- from the expanding reach of technology to the growing understanding of what works and what does not. Action now will save lives, build a solid foundation for sustainable development far beyond 2015 and help lay the groundwork for lasting peace and human dignity. We have 500 days to accelerate MDG action. Letâ&#x20AC;&#x2122;s make every day count.
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Economic and Social Council
Distr.: Limited 9 July 2014 Original: English
2014 session Item 5 of the provisional agenda* High-level segment
High-level political forum on sustainable development Convened under the auspices of the Economic and Social Council Agenda item 3** Adoption of the ministerial declaration of the high-level political forum
Draft ministerial declaration of the high-level segment of the 2014 session of the Economic and Social Council and the high-level political forum on sustainable development convened under the auspices of the Council, submitted by the President of the Council, Martin Sajdik (Austria)
Ministerial declaration of the high-level segment of the 2014 session of the Economic and Social Council on the theme “Addressing ongoing and emerging challenges for meeting the Millennium Development Goals in 2015 and for sustaining development gains in the future” Ministerial declaration of the high-level political forum on sustainable development convened under the auspices of the Council on the theme “Achieving the Millennium Development Goals and charting the way for an ambitious post-2015 development agenda, including the sustainable development goals” We the Ministers, having met at United Nations Headquarters in New York, 1. Recall the United Nations Millennium Declaration, the outcomes of the 2005 World Summit, the high-level plenary meeting of the General Assembly on the Millennium Development Goals, the United Nations Confer ence on Sustainable Development and the special event convened by the President of the General Assembly to follow up efforts made towards achieving the Millennium Development Goals, of 25 September 2013, as well as General Assembly resolutions 67/290 of 9 July 2013 and 68/1 of 20 September 2013;
* E/2014/1/Rev.1, annex II. ** E/HLPF/2014/1.
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2. Welcome the first and inaugural meeting of the high-level political forum on sustainable development convened under the auspices of the General Assembly on 24 September 2013; 3. Welcome the holding of the first session of the United Nations Environment Assembly of the United Nations Environment Programme in Nairobi, from 23 to 27 June 2014; 4. Emphasize that the implementation of a post-2015 development agenda should take into consideration the special challenges and needs of the least developed countries, landlocked developing countries, small island developing States and African countries, as well as the specific challenges that many middle income countries face. Conflict and post-conflict countries will also require our special attention, in order to address their specific challenges; 5. Reaffirm the Programme of Action for the Least Developed Countries for the Decade 2011-2020 (Istanbul Programme of Action), and look forward to the upcoming third International Conference on Small Island Developing States and the Second Conference on Landlocked Developing Countries; 6. Have considered the themes of the 2014 annual ministerial review, “Addressing ongoing and emerging challenges for meeting the Millennium Development Goals in 2015 and for sustaining development gains in the future”, and of the high-level political forum on sustainable development convened under the auspices of the Council, “Achieving the Millennium Development Goals and charting the way for an ambitious post-2015 development agenda, including the sustainable development goals”; 7. Welcome what has been achieved through the implementation of the Millennium Development Goals, which have provided a common vision a nd contributed to remarkable progress and significant and substantial advances in meeting several of the targets relating to the Goals; 8. Are determined to address the remaining unevenness and gaps in achievement and the challenges that remain, in particular for the most off-track Millennium Development Goals, and those where progress has stalled; 9. Reiterate our strong commitment to the Millennium Development Goals and resolve to intensify all efforts towards the acceleration of the achievement of the Goals by 2015 on the basis of national ownership and support from the international community; 10. Underline the central role of a strengthened global partnership for development, recognize the importance of national ownership and emphasize that, if the Millennium Development Goals are to be achieved by 2015, national efforts need to be assisted by international support and an enabling international environment. The mobilization and effective use of all resources, public and private, domestic and international, will be vital; 11. Reaffirm the importance of promoting human rights, good governance, the rule of law, transparency and accountability at all levels; 12. Call for the urgent implementation of all commitments under the global partnership for development so as to overcome the gaps identified in the reports of the Millennium Development Goals Gap Task Force, and emphasize the need to
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accelerate progress towards the target of 0.7 per cent of gross national income as official development assistance by 2015, including 0.15 per cent to 0.20 per cent for the least developed countries, and also call upon developed countries to urgently fulfil the official development assistance commitments that they have made, individually and collectively; Post-2015 development agenda 13. Are committed to establishing a strong, ambitious, inclusive and people centred post-2015 development agenda that will build on the foundations laid and experiences gained during the Millennium Development Goals process, complete the unfinished business and respond to new challenges; 14. Reaffirm, as we take the work forward, our commitment to the United Nations Millennium Declaration, the outcome document of the United Nations Conference on Sustainable Development, the Monterrey Conse nsus of the International Conference on Financing for Development, the Doha Declaration on Financing for Development: outcome document of the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus, and the outcomes of all the major United Nations conferences and summits in the economic, social and environmental fields, and will continue to be guided by the values and principles enshrined in those texts; 15. Reaffirm all the principles of the Rio Declaration on Environment and Development, including, inter alia, the principle of common but differentiated responsibilities, as set out in principle 7 thereof; 16. Resolve that the post-2015 development agenda should reinforce the commitment of the international community to poverty eradication and sustainable development, underline the central imperative of poverty eradication and are committed to freeing humanity from poverty and hunger as a matter of urgency and, recognizing the intrinsic interlinkage between poverty eradication and the promotion of sustainable development, underline the need for a coherent approach that integrates in a balanced manner the three dimensions of sustainable development and involves working towards a single framework and set of goals that are universal in nature and applicable to all countries, while taking into account differing national circumstances and respecting national policies and priorities, and should also promote peace and security, democratic governance, th e rule of law, gender equality and human rights for all; 17. Reaffirm that, as the greatest global challenge and an indispensable requirement for sustainable development, poverty eradication shall be central to the post-2015 development agenda; 18. Recognize that poverty eradication, changing unsustainable and promoting sustainable patterns of consumption and production and protecting and managing the natural resource base of economic and social development are the overarching objectives of and essential requirements for sustainable development. We also reaffirm the need to achieve sustainable development by promoting sustained, inclusive and equitable economic growth, creating greater opportunities for all, reducing inequalities, raising basic standards o f living, fostering equitable social development and inclusion and promoting the integrated and sustainable management of natural resources and ecosystems that supports, inter alia, economic,
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social and human development while facilitating ecosystem conser vation, regeneration and restoration and resilience in the face of new and emerging challenges; 19. Welcome the operationalization of the 10-year framework of programmes on sustainable consumption and production patterns and look forward to the launch of all of its programmes; 20. Stress the importance of economic growth and of social and economic inclusion, in the context of poverty eradication and sustainable development; 21. Reiterate that in arriving at an inclusive and people-centred post-2015 development agenda, we look forward to a transparent intergovernmental process that will include inputs from all stakeholders, including civil society, scientific and knowledge institutions, parliaments, local authorities and the private sector; 22. Acknowledge with appreciation the processes mandated in the outcome document of the United Nations Conference on Sustainable Development that are now under way, in particular the Open Working Group on Sustainable Development Goals and the Intergovernmental Committee of Experts on Sustainable Development Financing, and the process to develop options for a technology facilitation mechanism, as well as the preparations for the third International Conference on Financing for Development, to be held in July 2015, and look forward to the successful outcomes of these processes; 23. Look forward to the submission, before the end of 2014, of the report of the Secretary-General synthesizing the full range of available inputs, as an input to the intergovernmental negotiations that will be launched at the beginning of the sixty-ninth session of the General Assembly and culminate in a summit at the level of Heads of State and Government in September 2015 for the adoption of the post-2015 development agenda; 24. Resolve to strengthen the science-policy interface, including, inter alia, through a global sustainable development report that, taking into account the discussions on the options set out in the report of the Secretary-General during the meeting of the high-level political forum on sustainable development convened under the auspices of the Council in 2014 and building on existing assessments, could provide a strong evidence-based instrument to support policymakers to promote poverty eradication and sustainable development, t hereby contributing to the strengthening of ongoing capacity-building for data collection and analysis in developing countries; 25. Stress the need to remove the obstacles to the full realization of all rights of people living under foreign occupation which adversely affect their ability to promote the achievement of the Millennium Development Goals and an ambitious post-2015 development agenda, including the sustainable development goals; 26. Also stress the importance of removing obstacles in order to p romote the achievement of the Millennium Development Goals and an ambitious post -2015 development agenda, including the sustainable development goals, for people living in areas affected by complex humanitarian emergencies and terrorism; 27. Reiterate that the high-level political forum on sustainable development convened under the auspices of the Economic and Social Council shall conduct regular reviews, starting in 2016, on the follow-up to and implementation of
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sustainable development commitments and objectives, including those related to the means of implementation, within the context of the post -2015 development agenda, and further reiterate that these reviews shall: be voluntary, while encouraging reporting, and shall include developed and developing countries, as well as relevant United Nations entities; be State-led, involving ministerial and other relevant highlevel participants; provide a platform for partnerships, including through the participation of major groups and other relevant stakeholders; and replace the national voluntary presentations held in the context of the annual ministerial -level substantive reviews of the Council, building upon the relevant provisions of General Assembly resolution 61/16 of 20 November 2006, as well as experiences and lessons learned in this context; 28. Emphasize that the reviews shall take into account the lessons learned from and the experiences of relevant existing review mechanisms, including the national voluntary presentations held in the context of the annual ministerial reviews; 29. Commend the work that has been undertaken by the Economic and Social Council, including in its operational activities, integration, humanitarian and high level segments, and coordination and management meetings, the annual ministerial reviews, the Development Cooperation Forum, the special high-level meeting with the World Bank, the International Monetary Fund, the World Trade Organization and the United Nations Conference on Trade and Development, the youth forum, with its particular emphasis on youth employment, and the partnerships forum, as well as the work in the high-level political forum on sustainable development convened under the auspices of the Council, as concrete contr ibutions to the elaboration of the post-2015 development agenda; 30. Recognize the vital role that science, technology and innovation, including the transfer and diffusion of environmentally sound technologies on mutually agreed terms, can play in achieving poverty eradication and sustainable development and in supporting efforts to address global challenges; 31. Acknowledge the importance of the regional dimension for sustainable development, and invite the United Nations regional commissions to contribu te to the work of the Economic and Social Council and the high-level political forum on sustainable development, including through annual regional meetings, with the involvement of other relevant regional entities, major groups and other relevant stakeholders, as appropriate; 32. Are fully committed to a sustainable future for our planet and for present and future generations.
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Advance unedited version
Report of the Intergovernmental Committee of Experts on Sustainable Development Financing
Final Draft 8 August 2014
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Table of contents
I. Procedural Introduction to the Report on the work of the ICESDF.................................................. 3 II. Organizational matters .................................................................................................................... 3 III. Introduction .................................................................................................................................... 6 IV. The global context .......................................................................................................................... 8 A.
A changing global context ........................................................................................................... 8
The scope of financing needs ...................................................................................................... 9
Emerging patterns of resource flows ........................................................................................ 11
V. Strategic approach ........................................................................................................................ 18 VI. Options for an integrated sustainable development financing strategy ..................................... 21 A.
Domestic public financing ......................................................................................................... 21
Domestic private financing........................................................................................................ 26
International public financing ................................................................................................... 31
International private financing.................................................................................................. 35
Blended finance ......................................................................................................................... 37
VII. Global governance for financing sustainable development ....................................................... 42 VIII. Concluding remarks.................................................................................................................... 48
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Procedural Introduction to the Report on the work of the ICESDF
(1) In Resolution 66/288 of 11 September 2012, the General Assembly endorsed the outcome of the United Nations Conference on Sustainable Development, entitled “The future we want”. Paragraphs 255 and 256 of this document read as follows: “255. We agree to establish an intergovernmental process under the auspices of the General Assembly, with technical support from the United Nations system and in open and broad consultation with relevant international and regional financial institutions and other relevant stakeholders. The process will assess financing needs, consider the effectiveness, consistency and synergies of existing instruments and frameworks and evaluate additional initiatives, with a view to preparing a report proposing options on an effective sustainable development financing strategy to facilitate the mobilization of resources and their effective use in achieving sustainable development objectives. 256. An intergovernmental committee, comprising thirty experts nominated by regional groups, with equitable geographical representation, will implement this process, concluding its work by 2014.” (2) In Resolution 67/203 of 27 February 2013, the General Assembly requested the intergovernmental committee to provide an update on the progress of its work before the beginning of the sixty-eighth session of the Assembly. (3) By its decision 67/559 of 18 June 2013, the General Assembly welcomed the Committee’s membership comprised of 30 experts as nominated by the five regional groups of the United Nations, as listed in annex I of the decision. In the same decision, regional groups were authorized to appoint replacements for those experts from their group who cease to be members of the Committee, effective upon notification of the President of the General Assembly and the Committee by the relevant regional group. Experts already nominated by regional groups to serve as replacements for members of the Committee were listed in Annex II of this decision.
Organization of work
(4) Sessions were held as follows: first session (28-30 August 2013, six formal meetings); second session (2-6 December 2013, ten formal meetings); third session (3-7 March 2014, nine formal meetings); fourth session (12-16 May 2014, ten formal meetings) and fifth session (4-8 August 2014, ___ formal meetings). B.
(5) On 28 August 2013, the Acting President of the sixty-seventh session of the General Assembly (Peru) opened the session and made a statement. A statement was also made by the Assistant Secretary-General for Economic Development on behalf of the Under-Secretary-General for Economic and Social Affairs. 3
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Election of officers
(6) At its first meeting of the first session on 28 August 2013, the Committee elected Pertti Majanen (Finland) and Mansur Muhtar (Nigeria) as its Co- Chairs by acclamation. D.
(7) At the same meeting, the Committee adopted the provisional agenda (A/AC.282/2013/1), which read: 1. Election of officers. 2. Adoption of the agenda and other organizational matters. 3. Follow-up to the outcome of the United Nations Conference on Sustainable Development, relating to the preparation of a report proposing options on an effective sustainable development financing strategy to facilitate the mobilization of resources and their effective use in achieving sustainable development objectives. 4. Other matters. 5. Adoption of the report. E.
Modalities of work
At the same meeting, the Committee adopted its modalities of work1.
(9) At the 3rd meeting of its first session, on 29 August 2013, the Committee agreed to organize its work into three clusters of topics, as follows: 1. 2.
Assessing financing needs, mapping of current flows and emerging trends, and the impact of domestic and international environments Mobilization of resources and their effective use: a) Domestic resources (public and private): increasing effectiveness and mobilizing additional resources b) External resources (public and private): increasing effectiveness and mobilizing additional resources c) Blended finance (domestic and international) and new initiatives Institutional arrangements, policy coherence, synergies and governance issues
Proceedings of the Intergovernmental Committee of Experts
Closed meetings (10) Pursuant to its modalities of work, the Committee conducted the majority of its work in closed plenary meetings, in an interactive format. 1
Available from: http://sustainabledevelopment.un.org/content/documents/1999FINAL%20Modalities%20of%20workICESDF-revised%2028%20August%202013-2.pdf
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Open meetings (11) A briefing to the General Assembly on the work of the Committee (pursuant to paragraph 7 of General Assembly resolution 67/203) was held on 30 August 2013. The Committee also held an open briefing on the progress of the Committeeâ&#x20AC;&#x2122;s work on 16 May 2014. (12) Interactive multistakeholder dialogues with Member States, intergovernmental organizations, NGOs, business sector and other Major Groups engaged in the Rio+20 Conference, the Financing for Development process and the post-2015 development agenda were held on 5 December 2013, 3 March, 12 May, 18 July and 5 August 2014. The multistakeholder dialogues were preceded by open briefings. (13) A joint meeting with the Open Working Group on Sustainable Development Goals was held on 5 March 2014. Other meetings (14) The Committee held regional outreach meetings in Santiago de Chile (Latin America and Caribbean), in Helsinki, Finland (Europe), Addis Ababa, Ethiopia (Africa), Jeddah, Saudi Arabia (Arab region), and in Jakarta, Indonesia (Asia). In addition, numerous informal outreach events and multistakeholder dialogues were organized in different locations, including events with the international financial institutions. G.
Adoption of the report of the Intergovernmental Committee of Experts
(15) At its __th meeting of its fifth session, on 8 August 2014, the Committee adopted its draft report (contained in document A/CONF.282/2014/__), and entrusted the Co- Chairs, in collaboration with the Secretariat, to forward the report to the General Assembly for its consideration. Annex I. Membership of the Committee per session
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(16) At the United Nations Conference on Sustainable Development (Rio+20), the international community agreed to undertake a major effort to promote sustainable development globally and in every nation and free humanity from poverty and hunger.2 Member States also agreed to establish the Intergovernmental Committee of Experts on Sustainable Development Financing (the Committee)3and tasked us with developing options for a sustainable development financing strategy to facilitate the mobilization of resources and their effective use in achieving sustainable development objectives. (17) Rio+20 reaffirmed all the principles of the Rio Declaration on Environment and Development, including, inter alia, the principle of common but differentiated responsibilities, as set out in principle 7 thereof. (18) Our work is rooted in the principles expressed in the Rio+20 outcome document and in the universal values expressed in the United Nations Millennium Declaration,4noting that peaceful and inclusive societies, gender equality and human rights for all, including the right to development, are strong enablers for sustainable development. Eradicating poverty is the greatest global challenge facing the world today and an indispensable requirement for sustainable development. (19) The Monterrey Consensus of the International Conference on Financing for Development5provided a basis for our analysis, with its emphasis on the use of all forms of financing, including public, private, domestic and international in a holistic manner, as well as its recognition that each country has primary responsibility for its own development, while the global community is responsible for an enabling international environment. However, we also recognized the need to update this framework to meet the challenges of the post-2015 development agenda. (20) In this regard, we were mindful of the work of the Open Working Group on Sustainable Development Goals, and guided by the resolve of Member States that the post-2015 development agenda should reinforce the commitment of the international community to sustainable development based on a coherent approach that integrates its economic, social, and environmental dimensions. This approach involves working towards a set of global goals, universal in nature and applicable to all countries, while taking account of differing national circumstances and respecting national policies and priorities. (21) Building on the modalities and spirit that led to the Rio Declaration and the Monterrey Consensus, we consulted widely with a range of stakeholders, including civil society, the business sector, and other major groups. This outreach was integral to our work and included multistakeholder consultations, regional meetings, and calls for contributions on our website. We are grateful for all the inputs we received. 2
A/CONF.216/16, chapter I, resolution 1. General Assembly Decision 67/559 4 Resolution 55/2 5 A/Conf.198/11, chapter 1, resolution 1, annex 3
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(22) We began our analysis by assessing sustainable development financing needs, current financing flows and potential sources of financing. We found that needs are huge and the challenges in meeting them are enormous â&#x20AC;&#x201C; but surmountable. Indeed, global public and private savings would be sufficient to meet the needs. Yet it is clear that current financing and investment patterns will not deliver sustainable development. In particular, expected returns on investments associated with sustainable development are often not as attractive as other opportunities, especially in the near term. At the same time, there are many competing demands on public resources, and governments have not been able to mobilize adequate public financing to undertake necessary investments that profit-seeking investors eschew. (23) The solution includes better aligning private incentives with public goals and creating a policy framework that encourages for-profit investment in these areas, while also mobilizing public resources for essential sustainable development activities. The quality of finance also matters. Efforts to reduce corruption and to adopt more economically and socially effective public sector policies are thus important. Policies and incentives should also aim to better match investor preference with investment needs, so that, for example, long-term sustainable development needs are not financed with short-term funds. (24) Our work concludes that there is no one simple policy solution. Instead, a basket of policy measures will be necessary, encompassing a toolkit of policy options, regulations, institutions, programs and instruments, from which governments can choose appropriate policy combinations. We recommend a cohesive approach, with national financing strategies as an integral part of national sustainable development strategies. While the design and implementation of policies will be on the national level, achieving sustainable development will require international support and cooperation. Our approach is based on the principle of country ownership, supported by a strengthened global partnership for sustainable development. We find that a concerted effort that draws on all actors and mobilizes all resources in an integrated manner, while maximizing their impact, will allow us to finance the investments necessary to achieve sustainable development for all. (25) We begin the analytical section of our report with a discussion of financing needs and recent trends in financing flows. We then present a â&#x20AC;&#x2DC;strategic approachâ&#x20AC;&#x2122; derived from an analysis of the flow of funds from sources to uses. The bulk of our report (Section VI) considers policy options to strengthen the four basic categories of financial resource mobilization available for financing sustainable development, namely domestic public, domestic private, international public and international private finance, with an additional focus on means for blending official and private resources and collaboration between various actors. Throughout this section, we emphasize the interplay of the different types of financing and their potential synergies. In Section VII, we address international policy imperatives for a strong international economic environment and its governance, fully aware that fractures in the global economic architecture will undermine the global project to deliver sustainable development. We conclude with a discussion of options for the way forward.
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The global context
A changing global context
(26) Since the adoption of the Millennium Declaration in 2000, many developing countries have experienced significantly faster economic growth than developed economies. For example, between 2005 and 2012, gross domestic product (GDP) grew by 1.2 per cent annually in developed countries, and 6.1 per cent in developing countries,6 with the gap between GDP per capita of developed and developing countries narrowing. (See Figure 1.)In this context, global poverty decreased significantly, and the world reached the poverty reduction target of Millennium Development Goal (MDG) 1 five years ahead of schedule. Several other MDG targets have also been met ahead of time, including access to improved drinking water, gender parity in primary education and political participation of women, while some others are on track to be met, such as the targets on fighting malaria and tuberculosis.7 (27) Despite these achievements, there are differences between and within countries, and much unfinished business remains to realize all of the MDGs. Close to one billion people continue to live in extreme poverty. Many live marginally above the poverty line and are vulnerable to falling back into poverty when faced with adverse shocks. This vulnerability is often associated with gender, disability, ethnicity, indigenity and geographic location. Additional development challenges include growing unemployment, particularly among youths, as well as challenges associated with growth of cities. (28) Insufficient progress is related to several factors, including disparities in growth rates across regions and rising inequalities. While the narrowing of the GDP per capita gap between developed and developing countries reflects impressive gains in East Asia as well as emerging and developing Europe, some countries have not yet recovered from weak growth in the 1980s and 1990s, despite improvements since 2000. Indeed, the gap between GDP per capita of Latin America, Sub-Saharan Africa, and the Middle East and North Africa and that of the developed countries is greater today than it was more than 30 years ago (see Figure 1). Productivity growth in some developing and emerging economies remains too slow to significantly reduce the gap with developed countries.8 (29) At the same time, income inequalities within many countries have increased, and social inequalities and inequalities of opportunity also remain high. There are exceptions, though; for example, income inequality has fallen in some countries in Latin America, highlighting the fact that public policies can make a difference.9
At constant prices;United Nations, World Economic Situation and Prospects, 2014. UN, 2014, The Millennium Development Goals Report 2014, New York 8 OECD, 2014, Perspectives on Global Development 2014: Boosting Productivity to Meet the Middle-Income Challenge, Paris 9 UN, 2013, Report on the World Social Situation 2013: Inequality Matters, New York 7
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Figure 1: GDP per capita, relative to advanced economies
Source: Calculations based on IMF World Economic Outlook, April 2014 (30) Risks and vulnerabilities have also become more pronounced. Environmental degradation, climate change, natural disasters and other threats to the global environment (such as oceans, forests and biodiversity), pose additional challenges to the ability of all countries, and developing countries in particular, to achieve sustainable development. The global economic and financial crisis revealed risks within the international financial system, as well as the vulnerability of countries to external financial traumas, adversely impacting their capacity to mobilize resources for development. Clearly, without a stable financial system the post-2015 development agenda risks being derailed by a sudden regional or global financial crisis. B.
The scope of financing needs
(31) Against this backdrop, financing needs for poverty eradication and sustainable development remain significant. These include addressing i) basic needs related to eradicating poverty and hunger, improving health and education, providing access to affordable energy and promoting gender equality; ii) national sustainable development investment financing needs, such as for infrastructure, rural development, adaptation and climate resilient development, and energy; and iii) global public goods, including the protection of the global environment and combatting climate change and its impact, as well as other areas.
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(32) Quantifying needs is complex and necessarily imprecise, since estimates are dependent on a host of assumptions including the macroeconomic and policy environment – at sector and economywide levels – and international rules, norms and standards. The cost of achieving sustainable development also depends on the effective use of resources. Estimates of financing needs thus vary widely. The estimates presented in our report are indicative, aimed at providing an order of magnitude of financing requirements, rather than precise figures. In addition, we have not attempted to combine the estimates of needs by economic sector, type of demand, or category of country into a global estimate, as such an aggregation exercise does not adequately take into account the synergies and cross-cutting nature of sustainable development, among others. (33) With regards to social needs, a rough estimate of the cost of a global safety net to eradicate extreme poverty in all countries (measured as increasing incomes of the poorest to the $1.25 a day standard) is around $66 billion annually.10 Large investment requirements are also identified in addressing hunger, and health and education needs.11Ultimately, the eradication of poverty requires sustained and inclusive growth and job creation. In that regard, estimates of annual investment requirements in infrastructure – water, agriculture, telecoms, power, transport, buildings, industrial and forestry sectors – amount to $5 to $7 trillion globally.12 There is evidence that many micro, small and medium enterprises (MSMEs), which are often a main provider of employment, have difficulty obtaining financing. The unmet need for credit for SMEs has been estimated to be up to $2.5 trillion in developing countries and around $3.5 trillion globally.13 (34) There are also vast financing needs for the provision of global public goods. The order of magnitude of additional investment requirements for “climate-compatible” and “sustainable development” scenarios (which include goals and targets related to climate) are estimated to be of the order of several trillion dollars per year (see Figure 2).14 In assessing financing needs, it is pertinent to appreciate that the costs of inaction are even larger than the costs of action, especially for the poorest and in the realm of climate change. For example, delaying mitigation action, particularly for the countries that emit the largest quantities of greenhouse gases, is estimated to significantly increase the cost of transitioning to a low carbon economy in the medium and long term.15 (35) Financing needs also differ across countries and regions. While financing needs are disproportionately large relative to the size of their economies in many developing countries, there are specific needs in least developed countries (LDCs), Small Island Developing States (SIDS), Land Locked Developing Countries (LLDCs), countries in Africa and countries emerging from conflict. Challenges facing middle-income countries should also be addressed. 10
Chandy, L, and Gertz, G., 2011,Poverty in numbers: the changing state of global poverty from 2005 to 2015, Brookings Institution 11 Some estimates of these needs include: US$ 50.2 billion annually to eliminate hunger by 2025; US$ 37 billion to achieve universal health care; US$ 42 billion to achieve universal primary education and expand access to lower secondary education; see Greenhill and Ali, 2013, Paying for progress: how will emerging post-2015 goals be financed in the new aid landscape? ODI Working Paper 12 UNTT Background Paper 1, 2013;World Economic Forum, 2013, Green Investment Report 2013 13 Stein, P., Goland, T. and Schiff, R. (2010). “Two Trillion and Counting”. IFC and McKinsey & Company. 14 UNTT Background Paper 1 15 IPCC, 2014, Climate Change 2014: Mitigation of Climate Change. Summary for Policy Makers
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Figure 2: Orders of magnitude of investment requirements for various sectors taken from the literature
Order of magnitude of investment needs from the literature Oceans Forests Biodiversity Climate change mitigation Climate change adaptation Universal access to energy Renewable energy Energy efficiency Land and agriculture Infrastructure (non energy) MDGS 10
Annual investment requirements (billion US$ per year)
Source: UNTT Background Paper 1, x-axis in logarithmic scale C.
Emerging patterns of resource flows
(36) Despite large needs, the emerging patterns of resource flows highlight the opportunities for mobilizing financing needed to support the achievement of sustainable development. Global savings remain robust, at around US$ 22 trillion a year (inclusive of public and private sources), despite a temporary decline due to the crisis.16The stock of global financial assets – a placement for only a small portion of annual global savings – is estimated to be around US$ 218 trillion.17Even a small shift in the way resources are allocated would have an enormous impact. (37) All four types of finance - public and private, domestic and international – have increased since 2002. Domestic finance has grown rapidly in recent years, representing by far the greatest share of financing sources for most countries (see Figure 3). In many developing countries, particularly in LDCs, public international finance remains crucial.
Calculation based on IMF, World Economic Outlook April, 2014, at PPP exchange rates. Report of the Secretary-General, Follow-up to and implementation of the Monterrey Consensus and the Doha Declaration on Financing for Development, A/68/357
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Figure 3: Development finance in developing countries and Least Developed Countries
Source: Cluster 1 report, based on OECD, World Bank data18
(38) International financial flows to developing countries increased rapidly over the last decade, mainly driven by growth in private capital flows and remittances, though official development assistance (ODA) also strengthened, as depicted in Figure 4. Figure 4: Financing flows to Developing Countries (left) and Least Developed Countries (right), in billions of US$
Source: OECD DAC Stats, World Bank Migration and Remittances Data Public domestic resource mobilization (39) Public domestic finance in developing countries more than doubled between 2002 and 2011, increasing from US$ 838 billion to US$ 1.86 trillion.19In absolute terms, this growth mainly reflects developments in middle-income countries. Domestic public finance also doubled in low-income countries, though it remains insufficient to meet sustainable development needs. Tax revenues account for about 10 â&#x20AC;&#x201C; 14 per cent of GDP in low income countries, which is about one third less than in middle income countries, and significantly less than in high income countries, which achieve tax to GDP ratios of 20 - 30 per cent.20
As aggregated on capacity4dev.ec.europa.eu/ffd http://capacity4dev.ec.europa.eu/ffd/document/data-2000-2012-delinked 20 World Bank, 2013, Financing for Development post-2015. 19
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(40) In many countries, tax evasion and avoidance hinder domestic resource mobilization. In addition, illicit financial outflows, including tax evasion across borders, have undermined tax collection. Estimates of illicit financial flows, by nature clandestine, vary widely, but point to substantial numbers.21 (41) Domestic public resources are also impacted by subsidies. For example, in 2011 pre-tax energy subsidies amounted to US$ 480 billion, primarily in developing countries, and post-tax energy subsidies amounted to $1.9 trillion, primarily in developed countries.22Similarly, in agriculture, producer support subsidies among OECD members total US$ 259 billion in 2012.23Eliminating these would allow public resources to be redirected to other priorities. In all subsidy decisions, however, any adverse impacts on the poor and the environment need to be addressed, either through appropriate compensating policies or through better targeting. (42) There has been considerable change in the landscape of sovereign debt of developing countries since the Millennium Declaration. External debt amounted to 22.6 per cent of GDP in developing countries in 2013, as compared to 33.5 per cent a decade earlier.24 The debt difficulties of heavily indebted poor countries (HIPCs) have largely been addressed under the terms of the HIPC Initiative and the Multilateral Debt Relief Initiative (MDRI). (43) Some countries covered under HIPC have begun to issue debt on international markets, facilitated by a low interest rate environment. The issuance of public debt in domestic currencies (which, unlike external debt, does not subject the issuing country to foreign exchange risk) has also grown, reflecting the development of local capital markets. For example, local currency government debt in Sub-Saharan Africa increased from US$ 11 billion in 2005 to US$ 31 billion in 2012.25 However, much of this increased issuance is short-term. Excessive growth in both domestic and international debt poses risks to economic sustainability, underscoring the need for prudent debt management. (44) Nonetheless, the aggregate picture masks growing debt problems in some countries. Two low income countries are currently considered to be in debt distress, with 14 at high risk and 28 at moderate risk of distress.26 Debt sustainability is particularly problematic in some small states. In 2013, the average ratio of public debt to GDP of small state developing countries amounted to 107.7 per cent, vs. 26.4 per cent for developing countries as a whole.27At the same time, a few developed countries have also experienced sovereign debt distress.
See: UNTT Background Paper 2 The IMF defines consumer subsidies to include two components: a pre-tax subsidy (if the price paid by firms and households is below supply and distribution costs) and a tax subsidy (if taxes are below their efficient level).IMF, 2013, Energy subsidy reform â&#x20AC;&#x201C; lessons and implications, Washington, D.C. 23 OECD, 2013, Agricultural Policy Monitoring and Evaluation, Paris 24 UN, 2014, MDG Gap Task Force Report 2014, New York 25 AFMI, 2013 â&#x20AC;&#x201C; This figure relates to a sample of 29 sub-Saharan African countries in AFMI database 26 IMF, 2014, List of LIC DSAs for PRGT-Eligible Countries, 05 June 2014, accessed on 28 July 2014. Available from https://www.imf.org/external/Pubs/ft/dsa/DSAlist.pdf 27 UN, 2014, MDG Gap Task Force Report 2014, New York 22
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Domestic private finance (45) Financial systems in many developing countries rely primarily on the banking sector. Though domestic credit has grown substantially over the past decade, in many countries, banking sector credit is primarily short-term. For example, in some countries in Africa, short-term credit accounts for up to 90 per cent of bank financing,28 vs. 50-60 per cent for developing countries as a whole.29In addition, gross domestic savings rates in many LDCs remain significantly below the amount necessary to drive sustained domestic investment. (46) Domestic bond markets have also grown substantially, driven primarily by sovereign debt issues. Corporate bond markets, though growing, remain small. On average, private debt securities were only 5 per cent of GDP in middle income countries, compared to 34 per cent in high income countries in 2010. The lack of long-term bond markets limits the availability of long-term financing in many countries. Similarly, the depth of equity markets stood at nearly 60 per cent of GDP in high income countries; in low and middle income countries it amounted to only 20 and 28 per cent respectively.30 (47) The presence of institutional investors in developing countries has, however, been growing, and could potentially increase resources available for long-term investment in sustainable development. Emerging market pension funds are estimated to manage $2.5 trillion in assets, and are expected to increase significantly.31A sizable portion of these portfolios is invested in domestic sovereign debt. In some developing country national pension funds have also been investing directly in national or regional infrastructure, including in South Africa, Ghana, Chile, Mexico and Peru. (48) There is also a growing emphasis on the environmental, social, and governance impacts of investments. An increasing number of companies are reporting on these factors (referred to as ESG reporting) and have signed on to initiatives such as the Principles for Responsible Investment and the UN Global Compact. Nonetheless, the share of investment subject to ESG considerations remains small relative to global capital markets, at7 per cent or US$ 611 trillion of investments in the US$ 12143 trillion global capital market in 2010.32 International public finance (49) The development contribution of ODA improved in the wake of the adoption of the Monterrey Consensus in 2002, with increased attention paid to making ODA more effective while increasing its volume. ODA reached an all-time high of US$ 134.8 billion in net terms in 2013, after
K. Kpodar and K. Gbenyo, Short- Versus Long-Term Credit and Economic Performance: Evidence from the WAEMU, IMF Working Paper, WP/10/115, May 2010. 29 BIS database 30 UNTT, Background Paper 2, 2013, based on the basis of Global Financial Development Database, World Bank 31 Inderst, G. and Stewart, F., 2014, Institutional Investment in Infrastructure in Developing Countries: Introduction to Potential Models, World Bank 32 Principles for Responsible Investment, 2011, Report on Progress 2011.
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falling in 2011 and 2012.33 Nonetheless, only 5 OECD DAC donors reached the 0.7per cent of gross national income target. (50) ODA continues to provide essential financial and technical cooperation to many developing countries (see Figure 4), includingleast developed countries and many African countries, landlocked developing countries, small island developing states, and countries affected by conflict. In most countries with government spending of less than PPP$ 500 per person per year, ODA accounts for an average of more than two-thirds of international resource flows, and about one-third of government revenues.34 About 40 per cent of ODA currently benefits LDCs.35 However, ODA to LDCs, particularly in sub-Saharan Africa, has fallen in recent years, and according to preliminary results from donor surveys this trend is likely to persist.36 (51) The Leading Group on Innovative Financing for Development has pioneered on a voluntary basis a number of fund-raising mechanisms to raise additional resources, including the international solidarity levy on air tickets,37 the funds from which are contributed to UNITAID to help purchase drugs for developing countries. Eleven countries using the euro currency are currently envisioning a financial transaction tax from 2016, albeit without earmarking funds for development or financing of global public goods as of yet. Some countries (e.g. France) have, at the national level, put in place a financial transaction tax, with part of the proceeds used to finance ODA programmes.38 (52) There has also been a proliferation of sustainable development related international funds and delivery channels. These include global sector funds, premised on multi-stakeholder partnerships that bring together governments, private sector, civil society, as well as traditional and emerging donors, such as the Global Fund to Fight AIDS, Tuberculosis and Malaria, the GAVI Alliance, and the Global Partnership for Education. (53) Only ten years ago, multilateral climate finance was provided by a small number of large funds, which were associated with the United Nations Framework Convention on Climate Change (UNFCCC). There are now over50 international public funds. Over this period, governments designed and reformed institutions such as the Global Environment Facility (GEF), the Adaptation Fund (AF), the Climate Investment Funds (CIF), and most recently the Green Climate Fund (GCF), as well as new evolving financial instruments such as performance-based payments for reducing emissions from deforestation, degradation, and forest conservation (REDD+). Nonetheless, there remains a large gap between climate finance needs and resources. In particular, progress towards implementing the financial commitments under the United Nations Framework Convention on Climate Change (UNFCCC) has been slow. 33
OECD, 2014, Aid to developing countries rebounds in 2013 to reach an all-time high, 2014 Development Initiatives, 2013, Investments to End Poverty, p. 44 35 32 per cent of ODA, including both bilateral net and imputed multilateral ODA to LDCs, was allocated directly to LDCs in 2012, and an estimated 52 per cent of ODA unallocated by country could also be attributed to LDCs, bringing the total to 40 per cent; see: OECD, 2014,Targeting ODA towards countries in greatest need, April 2014 36 Idem 37 As of 2013, the levy was implemented by Cameroon, Chile, Republic of the Congo, France, Madagascar, Mali, Mauritius, Niger and Republic of Korea (in addition, Brazil does not impose the levy but makes a budgetary contribution equivalent to what the levy would have mobilized). 38 Some countries have chosen not to implement these instruments as of yet. 34
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(54) South-South cooperation – a complement to North-South cooperation –continues to grow rapidly, more than doubling between 2006 and 2011. While data on concessional South-South flows is incomplete, they are estimated at between $16.1 and $19 billion in 2011, representing more than 10 per cent of global public finance flows. Non-concessional South-South flows, such as foreign direct investment (FDI) or bank loans, have also expanded dramatically in recent years.39 International trade and cross-border private finance (55) Global trade also continues to grow, albeit at a slower pace than before the international financial and economic crisis, and trade flows have assumed increased importance for resource mobilization in many developing countries. For LDCs, the average trade-to-GDP ratio has risen from 38 per cent in 1990 to 70 per cent in 2011.40 The rise of global value chains in trade has tightened the link between trade and investment flows. (56) Gross flows of FDI to developing countries reached $ 778 billion in 2013, exceeding FDI to developed economies. FDI is the most stable and long term source of private sector foreign investment. However, LDCs receive only a small fraction (less than 2 per cent) of these flows.41In sub-Saharan Africa, FDI is driven primarily by investment in extractive industries, with limited linkages to the rest of the economy. Furthermore, the contribution of FDI to sustainable development is not uniform. In recent years, the composition of FDI appears to be changing. For example, globally, investment in finance and real estate increased from 28 per cent in 1985 to nearly 50 per cent of total FDI in 2011, whereas investment in manufacturing fell from 43 per cent to 23 per cent over this time.42 (57) The nature of international portfolio investment in emerging markets has evolved over the past fifteen years, as many countries’ markets have deepened and become more globally integrated. In particular, as domestic debt markets have grown, foreign investors have increased their purchases of local currency debt, and now play a dominant role in some emerging markets. However, these flows have been very volatile, reflecting a short-term orientation of international capital markets.43In the United States, for example, the average holding period for stocks has fallen from about 8 years in the 1960s to approximately six months in 2010.44 (58) Private cross-border transfers from individuals and households have also grown substantially. An estimated US$ 404billion was remitted to developing countries from migrants in 2013, representing a more than ten-fold increase in recorded remittances from 1990, when they
United Nations, 2014, Trends and progress in international development cooperation, Report of the Secretary-General, E/2014/77 40 Calculations are three-year averages based on UNCTAD Stat, 2014, accessed 8 August 2014. 41 UNCTAD, World Investment Report, 2014 42 UNCTAD FDI Database 43 Report of the Secretary-General,2013, International Financial System and Development, A/68/221 44 LPL Financial, Weekly Market Commentary – August 6, 2012. Available from: http://moneymattersblog.com/login/login/wp-content/uploads/2012/08/WMC080712.pdf
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were estimated at less than US$40 billion.45 In addition, philanthropic finance from private individuals, foundations and other organizations to developing countries amounted to approximately US$ 60 billion in 2013, with the majority coming from private donors in developed countries.46Philanthropic actors are particularly engaged in global sectoral funds, such as in the Global Fund to Fight AIDS, Tuberculosis and Malaria and the GAVI Alliance. (59) A portion of international inflows has been used by some countries to build foreign exchange reserves, in part as a form of self-insurance against the volatility of international capital flows. Foreign exchange reserves increased from $2.1 trillion to $11.7 trillion from 2000 to 2013. Developing countries, primarily emerging market countries, hold almost $8 trillion, with the top five emerging market countries holding around 65 per cent of this.47
World Bank, Migration and Development Brief 22, April 11, 2014. World Bank, Migration and Remittances Factbook 2011, 2010. 46 Hudson Institute, 2013, Index of Global Philanthropy and Remittances 2013, Washington, D.C. 47 Data based on IMF Article IV Reports and IMF International Financial Statistics
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(60) Figure 5 illustrates the analytical framework that has guided us in formulating this sustainable development financing strategy. Financial sources can be arranged into four categories: domestic public, domestic private, international public and international private sectors. The challenge for policymakers is to channel and incentivize more of these diverse and decentralized sources of financing into desired investments in sustainable development. (61) As depicted in Figure 5, financing decisions, in all cases, whether public or private, are influenced by national policy frameworks and the international financial architecture, the extent of appropriate and effective financing institutions, and the design and development of instruments to facilitate and help overcome impediments to investment in sustainable development. In this spirit, the following precepts guide our strategic approach. 1. Ensure country ownership and leadership in implementing national sustainable development strategies, along with a supportive international environment. Each country is responsible for its own development. The implementation of sustainable development strategies is realized on the national level. However, national efforts need to be complemented by international public support as necessary, and an enabling international environment. 2. Adopt effective government policies as the lynchpin of a sustainable development financing strategy. All financing is done within the context of national and international policy environments that set rules, regulations, and incentives for all actors. Thus, effective institutions and policies and good governance are central for the efficient use of resources and for unlocking additional resources for sustainable development. 3. Make use of all financing flows in a holistic way. Meeting financing needs for sustainable development requires optimizing the contribution from all flows, including public, private, domestic and international. Each type of financing has specific characteristics and strengths, based on different mandates and underlying incentives. Maximizing synergies, taking advantage of complementarities, and building on an optimal interplay of all financing sources is essential. 4. Match financing flows with appropriate needs and uses. Different sustainable development needs and project characteristics require different types of public, private, and blended financing. While private financing will be essential, all private finance is not the same. Long term sustainable development investments should be financed with long term funds. 5. Maximize the impact of international public finance. ODA plays a crucial role for countries where needs are greatest and the capacity to raise resources is weakest. The use of financing instruments and their concessionality should be appropriate to the level of development of each country, their specific conditions, capacities and capabilities, as well as the nature of the project. 18
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6. Mainstream sustainable development criteria in national financing strategies. Finance should support the economic, social, and environmental dimensions of sustainable development. This requires policies and incentives to incorporate sustainable development into financing strategies and implementation approaches. Sustainable development criteria should be included in public budgets and private investment decisions as appropriate. 7. Exploit synergies across the economic, environmental, and social dimensions of sustainable development. Different sustainable development objectives often overlap. Financing should be designed to exploit synergies and support policy coherence for sustainable development, while taking account of potential trade-offs. Thus, financing instruments can be used to address several policy objectives simultaneously. This would be best coordinated within the context of national sustainable development strategies. 8. Adopt a multi-stakeholder, people-centered and inclusive approach to achieve tangible results on the ground. Consultations with all stakeholders, including civil society and the private sector, will enable governments and policymakers to better appreciate the diverse needs and concerns of people in the formulation and implementation of sustainable development policies at all levels. In this regard, gender equality and the inclusion of marginalized groups, such as indigenous peoples and persons with disabilities must be ensured. 9. Ensure transparency and accountability of financing at national, regional and international levels. Transparency and accountability must underpin all financing to enhance legitimacy and effectiveness. Government providers of assistance and partner countries should strive for a more harmonized and coherent mutual accountability, with improved data collection and strengthened monitoring, while ensuring country ownership. Private financial flows should be monitored more effectively and made more transparent.
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* ** ***
The size of boxes does not represent financing volumes/importance There can be cases where international public finance also directly supports the implementation of international objectives Sovereign wealth funds handle public money, but are managed like private investors
Figure 5: Flows of funds from international and national financing sources to sustainable development*
Options for an integrated sustainable development financing strategy
(62) In each category of finance, decision-making is decentralized among the separate institutions and actors. Funding decisions in domestic and international private sectors are inherently dispersed among multiple actors, and the delivery of international public funds is also highly fragmented, despite efforts at coordination. Cohesive financing strategies, based on the principle of country ownership, are thus essential to facilitating the coordination of diverse sources of financing. In light of the cross-cutting dimensions of financing strategies, coordinated national decision making is needed. Governments should also effectively communicate their strategic frameworks. (63) In what follows, we highlight particular policy areas pertaining to each of the four groups of financing sources, as well as blended finance, and suggest a toolkit of policy options and financial instruments, to be used within a cohesive national sustainable development strategy. Notwithstanding the wide range of options proposed below, the choice of specific policy measures should be determined by domestic political considerations and other country-specific circumstances. A.
Domestic public financing
(64) There are three primary roles for domestic public finance: 1) increasing equity, including through poverty reduction; 2) providing public goods and services that markets will eschew or underprovide and enacting policies to change incentives of private actors; and 3) managing macroeconomic stability.48In addition, domestic resource mobilization reinforces a country’s ownership of public policy and allows countries to move toward financial autonomy. National public finance strategies should reflect these motivations as they guide the implementation of sustainable development strategies. Promote tax reform, tax compliance and deeper international cooperation (65) Domestic resource mobilization depends on many factors, such as size of tax base, a country’s capacity to collect and administer taxes, tax elasticity, the volatility of sectors being taxed, and commodity prices. While optimal tax policy design is necessarily reflective of a country’s economic and social situation, governments should follow generally accepted principles of sound public finance management, e.g. tax systems should be fair, efficient and transparent. Governments may also prioritize real income gains at the bottom of the income distribution through progressive tax policies, such as “earned-income tax credits”, and VAT exemptions on basic goods and services. More generally, the tax base should be as wide as possible, while maintaining equity and efficiency. Indeed, widening the tax base has been instrumental in recent advances in tax collection in many developing countries, including LDCs and SIDS. Key indicators of success in tax reform include high level political commitment, administrative and policy reform and strong leadership in the revenue
Richard Musgrave, 1959, Theory of Public Finance, New York
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administration.49.Socially balanced user fees for some public services may be warranted so that beneficiaries contribute to the cost of the service, though they are not encouraged for essential social services. (66) However, there are limits on what individual governments can accomplish on their own in the globalized economy. For example, national jurisdictions sometimes compete with other countries through offers of tax incentives to attract and hold employers, eroding the tax base of both competing countries. Ending harmful tax competition needs to be based on cooperation between competing countries, while respecting the sovereign right of countries to design their national tax regimes. This would generally be done in a regional or international forum. Such forums can also stimulate cooperation to stem illicit financial flows, as discussed in Section VII.50 (67) Whereas, to date, technical assistance to the revenue and customs sector has attracted a minimal share of ODA,51going forward more focus should be placed in responding to national requests for strengthening fiscal management capacity and capacity building for domestic resource mobilization. In addition, examples of successful reforms can inspire policy design elsewhere. The benefits of broader international forums on tax cooperation are palpable.(See Section VII.)Additional capacity building efforts should target institutional capacities to collect adequate revenues from extractive industries. (68) In resource-rich countries, the management of natural resources is particularly critical. Fiscal rules governing the extractive industries should ensure that the public interest is appropriately compensated. Governments can also design policies to ensure that a share of resource earnings are saved and invested for the benefit of future generations, as in sovereign wealth funds (SWFs). When tax revenues from resource extraction are volatile, governments can accumulate surplus earnings in years of high prices and smooth government expenditures in years of low prices through commodity stabilization funds. International cooperation is needed to tackle the illicit trafficking of natural resources, including from countries in situations of conflict. Transparency and anti-corruption programs, including voluntary initiatives, are also relevant in many cases. Ensure good financial governance and public financial management (69) Combating corruption plays an important part in complementing efforts to improve domestic revenue mobilization. Corruption can have adverse effects on businesses, individuals and public financial management. High scores on corruption indicators are also strongly associated with low public revenue. To advance the fight against corruption, all countries should strive to ratify and implement the United Nations Convention against Corruption and should make further combined efforts, particularly on prevention, enforcement and stolen asset recovery. (See Section VI.C.). 49
â&#x20AC;&#x153;Report to the G20 Development Working Group by the IMF, the OECD, UN and World Bank: Supporting the Development of More Effective Tax Systems.â&#x20AC;? http://www.imf.org/external/np/g20/pdf/110311.pdf 50 While there is no agreed on definition of illicit flows, for the purpose of this report, we define illicit flows as money that is illegally earned, utilized and, in either case, transferred across borders, and includes profits hidden from tax administrations. 51 OECD, IMF, UN, World Bank Group (2011). Supporting the Development of More Effective Tax Systems. Available from http://www.imf.org/external/np/g20/pdf/110311.pdf
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(70) A central element of good financial governance is proper planning and execution of the budget. Generally accepted principles of good budgeting address the stages of formulation, approval, execution and audit. These principles should ensure that public spending is consistent with national sustainable development strategies, inclusive of environmental, social, economic, gender, and other goals. Planning and execution of budgets should be based on transparency, legitimacy, accountability and participation of citizens, consistent with country capabilities and circumstances. In this regard, domestic public sector internal and external control mechanisms, such as supreme audit institutions, that ensure spending is in line with intended purposes should be implemented and strengthened. Furthermore, fiscal decentralization can strengthen local governance and create local ownership for the disposition of funds. (71) It is common in normative budget policy discussions to ask if specific subsidies continue to be warranted. Countries should review the efficacy of all subsidies as a matter of sound fiscal management. Countries should consider rationalizing inefficient fossil fuel subsidies that encourage wasteful consumption by removing market distortions, in accordance with national circumstances, including by restructuring taxation and phasing out those harmful subsidies, where they exist, to reflect their environmental impacts. Such actions should fully take into account the specific needs and conditions of developing countries and minimize possible adverse impacts on their development in a manner that protects the poor and affected communities.52 (72) Similarly, countries should correct and prevent trade restrictions and distortions in world agricultural markets, including by the parallel elimination of all forms of agricultural export subsidies and all export measures with equivalent effect, in accordance with the mandate of the Doha Development Round. (73) Procurement systems need further strengthening in many countries to ensure fair competition. As part of budget execution, authorities may wish to align their procurement policies with national sustainable development strategies, which implies defining minimum environmental and social standards for public sector suppliers, taking into account domestic situations. In this respect, sustainable procurement can have the added benefit of promoting sustainable technologies. Public procurement systems can also promote the development of sustainable local businesses. (74) Financial auditing and control should be complemented by monitoring and evaluation of economic, social and environmental impacts, in line with country capacities and circumstances. Strengthened national and independent audit and evaluation agencies could be assigned this responsibility, as could other politically and socially anchored oversight mechanisms, including in the Parliament. Capacity development initiatives, including the exchange of knowledge and experiences, can help improve policy design, budget processes and budget implementation.
Reservations were expressed by several Member States to paragraph 225 of the Rio+20 outcome document, A/CONF.216/16, chapter I, resolution 1, paragraph 225 (see General Assembly 123rd plenary meeting, 2012, A/66/PV.123).
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Internalize externalities and mainstream environmental sustainability (75) There is a large potential role for fiscal reforms in promoting environmental sustainability. Policy measures such as “cap and trade” and carbon taxes seek to curb carbon emissions by raising the price of emissions and “internalize externalities”. Carbon markets remain relatively small, however, with only 7 per cent of the world’s emissions covered.53 Furthermore prices for traded emission permits have been volatile and too low to impact the development and deployment of clean technologies. Governments that set up cap and trade schemes need to set sufficiently tight caps, monitor volatility and set appropriate regulations. At the same time, 13 countries have initiated some form of national or sub-national carbon taxes.54 Although there has been some debate on the competitiveness effects associated with taxing carbon emissions, European countries that have had carbon taxes in place for over a decade have seen neutral or slightly positive effects on GDP.55 (76) Governments should also consider other policies to change investment patterns, such as direct emission restrictions on investments, subsidizing research and development of clean technologies, including carbon capture and storage technologies, tax incentives, feed-in tariffs, energy efficiency or renewable energy targets, pollution rights, and payments for ecosystem services. (77) Environmental accounting, which incorporates environmentally relevant financial flows and accounts on the use of natural resources, is another mechanism that can help policymakers internalise externalities. GDP is a crucial measure that governments use to assess the economic performance of countries, but by not incorporating natural capital, it can lead governments to ignore an inefficient allocation of investment. The System of Environmental-Economic Accounting (SEEA) could facilitate greater public investment in sustainable development. Address inequity and the social protection imperative (78) Governments should use fiscal policies (both tax and spending) to address inequalities, fight poverty, improve water and sanitation, and support other social services, in particular to benefit low income, vulnerable and marginalized groups. A frequent call is to give priority to public investment projects that are “pro-poor” and gender sensitive. (79) Structural vulnerabilities, which affect the poor and other socially excluded groups, women, persons with disabilities, indigenous peoples, migrants, minorities, children, older persons, youth and other marginalized groups, can be reduced by aiming for universal provision of basic social services.56
Climate Economics in Progress 2013, Chapter 1: Carbon prices and markets around the world (Climate Economic Chair, 2013), p. 28 54 World Bank, 2014, State and Trends of Carbon Pricing, p. 25 55 Mowery, David C, Richard R. Nelson and Ben R. Martin (2010). 56 UNDP, 2014, Human Development Report 2014: Sustaining Human Progress, New York
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(80) In addition to offering protection against risks, social protection can contribute to equitable growth by reducing poverty and inequality, raising labour productivity, and enhancing social stability. Countries should consider policies to strengthen â&#x20AC;&#x153;social protection floorsâ&#x20AC;?, which, as per the findings of the International Labor Organization are affordable in most countries out of domestic revenues, but warrant international assistance for the poorest.57Insurance services offer further opportunities to create a safety net for households, including for example insurance products that cover healthcare, life risks and agriculture. However, private insurance is not usually effective at covering those most in need, so government policies remain crucial. There is also an urgent need for governments to invest adequately in disaster risk mitigation and in systems that build resilience against shocks, as well as in environmental preservation, especially in areas where local populations depend on natural resources. (81) Productive and decent employment is the most important form of income security. Most people rely on earnings from work as their main source of income. Macroeconomic and fiscal policies that promote full and productive employment, as well as investment in human capital, are therefore central to poverty reduction and increased equity. Effectively manage public debt (82) Debt financing can represent a viable option to provide funding for public spending on sustainable development. At the same time, debt needs to be effectively managed, with the goal of ensuring that debt obligations can be serviced under a wide range of circumstances. Governments should make regular use of analytical tools to assess alternative borrowing strategies and the associated risks, better manage their assets and liabilities, and restrain from irresponsible borrowing. Treasury departments should aim to increase the issuance of long-term bonds in local currencies, particularly to domestic investors, as such issuance would reduce the foreign exchange risk of the government. At the same time, as agreed in the Monterrey Consensus, creditors share responsibility with the sovereign debtor to prevent and resolve debt crises, including providing debt relief where appropriate. They should be held responsible to adequately assess credit risk, improve credit screening and reduce irresponsible lending to high-risk countries. (83) The International financial institutions and the UN system have been developing standards for prudent management of government debt. Countries that have already reached a high level of debt need to ensure that the growth of public debt does not exceed expected GDP growth to avoid financial distress. In this regard, the World Bankâ&#x20AC;&#x201C;IMF Debt Sustainability Framework (DSF) is designed to help guide low-income countries and their donors in mobilizing financing while reducing the chances of an excessive build-up of debt by setting a debt threshold. In addition, international institutions are providing technical assistance to strengthen local capacities in this area. This should be maintained, along with commitments to transfer finance, technology and capacity to enable developing countries build the human and institutional capabilities to effectively manage public debt.(See Section VII for a discussion of systemic issues and sovereign debt resolutions.)
ILO, 2011, Social protection floors for a fair and inclusive globalization, Geneva
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Explore the potential contributions of national development banks (84) In the absence of sufficient long-term private sector financing and investment in sustainable development, many countries have established national development banks (NDBs) and other public institutions to support long-term investment. The combined assets of the International Development Finance Club (IDFC), a group of 20 national, bilateral, and regional development banks, amount to over $ 2.1 trillion in 2010.58NDBs can play an important role, for example, in financing SMEs, infrastructure, and innovation. As NDBs have specific knowledge of domestic markets, they are often well suited to provide relevant capacity development and assistance in private project management. Recent studies have also shown that some NDBs also played a valuable countercyclical role, especially in cases of crisis when private sector entities become highly risk-averse. (85) Governments can use NDBs to strengthen capital markets and leverage investments in sustainable development. For example, some NDBs finance (part of) their activities through the issuance of bonds that allocate funds raised to a particular use, such as green infrastructure with the proceeds allocated to specific classes of investment (e.g. green bonds). (86) There are, however, challenges for policymakers with regard to NDBs. Policymakers should ensure that public development banks do not undertake activities that the private sector will competitively provide. Importantly, provisions should be in place to avoid inappropriate political interference with the operation of the bank, and to ensure efficient use of resources, particularly with regard to leveraging private sector investment in sustainable development. B.
Domestic private financing
(87) In understanding the role of the private sector in financing sustainable development, it is important to recognize that the private sector includes a wide range of diverse actors, from households to multinational corporations and from direct investors to financial intermediaries, such as banks and pension funds. Private resources have historically been a key driver of domestic growth and job creation. (88) Private financing is profit-oriented, making it particularly well suited for productive investment. However, the quality of investment matters. There continues to be a dearth of domestic long-term investment necessary for sustainable development, even while there is a growing understanding among the private sector that commercial interest and public policy goals can be realized at the same time. (89) There is thus a role for governments to develop policies to help incentivize greater long-term investment in sustainable development. An enabling environment is essential for reducing risks and encouraging private investment. In addition, governments can work to develop local capital markets and financial systems for long-term investment, within a sound regulatory framework.
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Provide access to financial services for households and micro-enterprises (90) Recent studies indicate that stable, inclusive and efficient financial markets have the potential to improve peoples’ lives by reducing transaction costs, spurring economic activity, and improving delivery of other social benefits, particularly for women.59 Expanding the scope and scale of financial services offered to the poor, older persons, women, persons with disabilities, indigenous people and other underserved populations is important to help achieve sustainable development objectives. (91) Households of all income levels, even the poorest, use basic financial services, namely payments, savings, credit and insurance. The poor, particularly those in least developed countries, mainly use informal financial service providers. Indeed, more than half of the working-age adults in the world are presently “unbanked” by formal providers, with the vast majority in developing countries.60 If affordable and appropriate financial services were available at reasonable proximity, all indications are that people would use them.61 Many governments have thus provided and/or welcomed providers of financial services for the poor, including through microfinance institutions, cooperative banks, postal banks and savings banks, as well as commercial banks. (92) The best way to implement financial inclusion varies by country. Nonetheless, there are some elements that have worked well across countries, including support for the development of credit bureaus for assessing borrower loan-carrying capacity. Developments in information and communication technologies can make it possible for poor people to receive financial services at low cost without having to travel long distances to bank branches. Branchless banking and mobile banking technologies can be used in making Government-to-People payments (wage, pension and social welfare payments) with lower administrative costs and less leakages. Bringing more people into the formal financial sector is believed to also have a beneficial effect on tax collection. Furthermore, regulation is important to ensure responsible digital finance and avoid abusive practices. (93) Surveys demonstrate that a lack of awareness of financial products and institutions is a barrier to their utilization, particularly for insurance. The public sector can promote strengthened financial capability, including financial literacy, while also expanding consumer protection. In particular, financial service providers should be required to disclose key information in a clear and understandable, preferably uniform, format. Policymakers should also enact clear standards for treating consumers fairly and ethically, and set up uniform recourse mechanisms for effective resolution of disputes across the industry. In this regard, governments might establish consumer protection agencies to oversee the necessary framework for consumer protection within a country context.
See CGAP, 2014, Financial Inclusion and Development: Recent Impact Evidence”, Focus Note No. 92, April 2014 Asli Demirguc-Kunt and Leora Klapper. 2012. “Measuring Financial Inclusion: The Global Findex Database.” Policy Research Working Paper 6025, World Bank, Washington, DC. 61 United Nations, Building Inclusive Financial Sectors for Development (New York, 2006). 60
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(94) Though it is only one aspect of financial inclusion, a lot of attention has been paid to microfinance. There is a wide global network of forums and international support networks in the public and non-profit microfinance sectors, which speaks to the vibrancy of the industry. Nonetheless, microfinance remains outside of the regulatory framework in many countries. With the growth of microfinance institutions, both managers and regulators should be concerned about the need to balance expanding access to financial services with managing risks, including social risks of household indebtedness. Promote lending to small and medium-sized enterprises (95) An important area where access to financial services (in this case, credit) is insufficient relates to small and medium-sized enterprises (SMEs), which in many countries are main drivers of innovation, employment and growth. More than 200 million SMEs lack access to financial services worldwide. Frequently, SMEs’ financial needs are too large for the traditional moneylenders and microcredit agencies, while large banks tend to bypass this market, due to administrative intensity, the lack of information and the uncertainty of credit risk. By providing credit information, credit registries/bureaus, and collateral, and insolvency regimes could help extend SME access to credit. (96) Long- term bond markets are limited in many developing countries, and alternative vehicles for financing innovative start-ups, such as angel investors and venture capital funds, are largely missing in many developing countries. NDBs can play an important role here. To support greater access to finance for SMEs, a calibrated interplay of private and public banks can also be used. For example, one model used by development banks is to provide concessional public funding to the commercial banking sector, which on-lends the funds at a preferential rate for SMEs. Instruments can encompass guarantees, loans, interest-rate subsidies, equity and equity-linked investments as well as access to services and information. Many countries also maintain other forms of support for SMEs, such as low interest government loan programs. Cooperative banks, post banks and savings banks are also well suited to offer financial services to SMEs, including developing and offering more diversified loan products. (97) Lending to SMEs is considered high risk by many bankers due to lack of information and uncertainty of credit risk. Credit is often insufficient, even when there is ample liquidity in the banking sector. However, a diversified portfolio of SME loans can significantly reduce risks. Securitization of diverse portfolios of SME loans, potentially sourced across a variety of banks to ensure greater diversification, can potentially increase funds available for SME lending. However, safeguards need to be in place to address risks in “lend-to-distribute” banking, as highlighted during the financial crisis, so that the issuer maintains a stake in keeping the loans performing (such as rules that require banks to maintain a percentage of each loan on their balance sheets). Develop financial markets for long-term investment and enhancing regulations to balance access and stability (98) A well-capitalized banking sector and long-term bond markets allow domestic companies to meet their longer term financing needs – without taking foreign exchange risks associated with borrowing in foreign currency. Local bond markets can thus play an important role in financing long28
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term sustainable development. To successfully develop local capital markets, policymakers need to build institutions and infrastructure, including supervision, clearing and settlement systems, effective credit bureaus, measures to safeguard consumers, and other appropriate regulation. (99) Institutional investors, particularly those with long-term liabilities, such as pension funds, life insurance companies, endowments, and SWFs are particularly well-suited to provide long-term finance (though international institutional investors have tended to invest with a short term time horizon in recent decades, see Section VI.D.) To nurture the development of an institutional investor base, policymakers need to develop an institutional, legal and regulatory framework. This includes securities laws, asset management regulations, and consumer protection. Policymakers could provide rules for transparent processes, sound governance, and an efficient enforcement system. There are numerous examples of successful regulatory frameworks from developed and emerging market countries, though policymakers in developing countries should adapt these to local conditions, and be flexible to update them in response to changing market conditions. (100) In general, financial markets need to be developed with care as bond and equity markets often demonstrate high volatility, especially in small markets that lack liquidity. To limit excessive volatility that can impact the real economy, regulations can be enacted in conjunction with capital account management tools to deter “hot money”. In some areas, developing a regional market might be effective in achieving a scale and depth not attainable in individual small markets. Partnerships between nascent markets and established global financial centers can support the transfer of skills, knowledge and technology to developing countries, though care should be taken to adapt these to local conditions. (101) On the flipside, it is important to note that the financial sector can grow too large relative to the domestic economy. Above certain thresholds financial sector growth may increase inequality and instability, in part due to excessive credit growth and asset price bubbles.62 It is therefore important for all countries to design strong “macro-prudential” regulatory frameworks. (102) A robust regulatory framework should consider all areas of financial intermediation, including shadow banking ranging from microfinance to complex derivative instruments. Enhancing stability and reducing risks while promoting access to credit presents a complex challenge for policymakers, since there can be trade-offs between the two. Policymakers should design the regulatory and policy framework to strike a balance between these goals. For example, the European Union included special provisions (e.g. Capital Requirement Directive IV) in its implementation of Basel III to reduce the capital cost of lending to SMEs. There are also calls for financial sector regulatory systems to be widened from focusing on financial stability to include sustainability criteria.
IMF, 2013, Financial Crises: Explanations, Types, and Implications, IMF Working Paper WP/13/28, January 2013, Washington D.C.
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(103) Islamic finance has also generated important mechanisms that can support sustainable development financing.63Islamic financial assets have grown rapidly in the last decade, including in the areas of infrastructure financing, social investments and green investments. The investment vehicles used in Islamic finance, which are based on shared business risk, improve depth and breadth of financial markets by providing alternative sources of financing. These financing structures might offer lessons on how to develop a class of new long-term investment. Strengthen the enabling environment (104) It is well known that strengthening the domestic policy, legal, regulatory and institutional environment is an effective way for governments to encourage private investment. To better mobilise and effectively use finance, policy measures should focus on easing the bottlenecks within the country context. As a result of such efforts over the past decade, many developing countries have reduced excessive complexity and cost that businesses pay to start and maintain operations. While the structure of reforms varies between countries and regions in line with their historical experience, culture and politics, policymakers can strengthen the enforceability of contracts, the protection of creditor and debtor rights and the effectiveness of trade and competition policies, streamline business registration regimes, and promote the rule of law, human rights and effective security. Investment in infrastructure and essential public services, as well as human capital, would also help to make the business environment more attractive. Political instability, macroeconomic instability and policy uncertainty are significant obstacles to doing business in any country, underlining the importance of sound policies more broadly. Strengthen economic, environmental, social and governance (EESG) and sustainability considerations in the financial system (105) Policymakers should aim to foster sustainability considerations in all institutions and at all levels. This can be done by encouraging joint reporting on both economic returns and environmental, social and governance (ESG) impacts â&#x20AC;&#x201C; which can be referred to as EESG reporting. In addition, appropriate regulations, such as portfolio requirements and other measures in line with domestic conditions can be used to strengthen these considerations. (106) There are signs of a strengthened focus on EESG considerations in some financial markets. Increasing numbers of private sector actors have signed on to the Equator Principles for project financiers, Principles for Responsible Investment, and Principles for Sustainable Insurance, which set standards for private investors. Similarly, the Sustainable Stock Exchanges Initiative aims to explore how exchanges can work with investors, regulators, and companies to enhance corporate transparency, report performance on EESG issues, and encourage responsible long-term approaches to investment. Knowledge of these initiatives within many businesses and financial institutions remains limited. It is thus important to scale-up awareness and capacity building, in both public institutions and financial market firms. In this regard, governments could encourage financial market
Islamic finance is based on the principles of Islamic law. Its two basic principles are the sharing of profit and loss and the prohibition of the collection and payment of interest.
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firms to train their employees on EESG issues, which could be included in qualifying exams and courses for industry licenses. (107) An important consideration in sustainable development is the emissions impact of financing activities. In this context, some pension funds, albeit relatively smaller funds have begun to monitor the emissions of their portfolios on a voluntary basis64, allowing fund managers to recognize the risks they are already bearing. Policymakers could play a catalytic role in this area by encouraging index providers to accelerate work on the design of benchmarks and encouraging transparency regarding emissions impact, particularly in public investment funds (e.g. public pension funds). (108) A key question is whether largely voluntary initiatives can change the way financial institutions make investment decisions. Policymakers could consider creating regulatory frameworks that make some of these practices mandatory. To be most effective, these policies should be based on extensive engagement between the private sector, civil society, financial regulators, and policymakers. In this regard, several countries have already mandated some ESG criteria, including South Africa, Brazil, Malaysia, France and the UK, among others. More research should be done on the impact of different mechanisms. International organizations can create a platform for sharing experiences on both successes and failures of various instruments and arrangements. C.
International public financing
(109) International public finance plays a central role in financing sustainable development. Similar to domestic public finance, there are three functions of international public finance: poverty eradication and development; financing the provision of regional and global public goods; and maintaining global macroeconomic stability within the context of the broader global enabling environment. (See Section VII.)International public finance should complement and facilitate national efforts in these areas, and will remain indispensable in implementing sustainable development. ODA in particular will remain critical and should be focused where needs are greatest and the capacity to raise resources is weakest. Meet existing commitments (110) ODA remains an important source of external public financing for developing countries, particularly LDCs. ODA reached record levels in 2013, though it still remains significantly below the internationally agreed target of 0.7 per cent of GNI, averaging 0.3 per cent of GNI in 2013. Similarly, despite commitments to allocate 0.15 - 0.20 per cent of GNI as ODA to LDCs in the Istanbul Programme of Action, ODA to LDCs amounts to only 0.09 per cent of GNI, on average.65 (111) In 2010, the Parties to the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC) agreed that developed countries committed, in the context of meaningful mitigation actions and transparency on implementation, to a goal of mobilizing jointly USD 100 billion dollars per year by 2020 to address the needs of developing countries, which will be 64
OECD, 2014, Aid to developing countries rebounds in 2013 to reach an all-time high, April 2014
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drawn by a wide variety of sources (public, private, bilateral, multilateral, including alternative sources). (112) Member States of the United Nations should honor their commitments in full and in a timely manner, and neither ignore nor dilute them. Member States should in particular acknowledge the large financing gaps in LDCs and other vulnerable countries. Further effort is needed to maintain and increase ODA allocated to LDCs and those most in need. Make use of all international public financing sources and instruments (113) A number of governments have joined together to develop innovative mechanisms to mobilize additional international concessional resources for development and poverty eradication. The international community should further explore innovative mechanisms, with a view to financing global sustainable development. (See Section IV.C.) (114) South-South Cooperation (SSC), as a complement to North-South cooperation, is a diverse and increasingly important category of voluntary intergovernmental assistance that can facilitate sustainable development, in accordance with the Nairobi outcome document of the United Nations Conference on South-South Cooperation (2009), endorsed by the GA Resolution 64/222. A number of Southern providers of assistance have decided to further strengthen their work, including inter alia through additional evidence-based analysis of South-South cooperation experiences and evaluation of South-South cooperation programmes. Additionally, the High-Level Committee of South-South Cooperation adopted the decision 18/1 (2014), which makes recommendations regarding the UN System, including an invitation for the Secretary-General to include in his synthesis report concrete steps to further strengthen South-South Cooperation. (115) Triangular cooperation is a further useful complement, which has the potential to improve the effectiveness of development cooperation through sharing of knowledge, experience, technology and financial resources from emerging economies and traditional donor countries. (116) International public funds that are less concessional than ODA, such as some loans from the International Monetary Fund (IMF), the World Bank and the other international and regional financial institutions (IFIs), are key sources of medium and long-term finance for the countries that draw upon them. Important financing modalities include public loans to governments, equity and debt finance for the private sector and a range of blended financing instruments, including riskmitigating instruments such as credit and political risk guarantees, currency swaps and arrangements combining public and capital market funds (e.g. on traditional infrastructure projects). When employed according to country and sector needs, and building on their specific advantages, they can help mitigate risk and mobilize more upfront financing than would be available from budget resources alone, as discussed in Section VI.E on blended finance. It is also important to ensure that LDCs are not refrained from accessing, solely on the basis of their income, less concessional funds from IFIs and DFIs. Financially viable projects should instead be considered on a case-by-case basis, while keeping in mind debt sustainability considerations (see Figure 6).
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Use international public resources efficiently and effectively (117) International public finance ultimately represents taxpayer funds, putting an extra burden on both concessional and non-concessional public financial intermediaries to deploy them efficiently and effectively. ODA should be focused where needs are greatest and the capacity to raise resources is weakest, including LDCs, SIDS, LLDCs and the poorest in all developing countries, with a sufficient portion of ODA concentrated on the eradication of extreme poverty, as well as the reduction of all forms of poverty and meeting other basic social needs. (118) International public finance will also have an important role in financing investments in national development, such as infrastructure. Some of these investments are profitable, and international public finance can catalyze private financing for sustainable development in such areas.(See section VI.E on blended finance.) In conjunction with this, international public finance should also respond to the growing need for financing for global public goods, without crowding out traditional development assistance. (119) Acknowledging the multiple roles that international public finance will need to play in the sustainable development agenda, the Committee recommends that the level of concessionality of international public finance should take into account both countriesâ&#x20AC;&#x2122; level of development (including their level of income, institutional capacity, and vulnerability) and the type of investment, as depicted in Figure 6. Concessionality should be highest for basic social needs, including grant financing appropriate for least developed countries. Concessional financing is also critical for financing many global public goods for sustainable development. For some investments in national development, loan financing instruments might be more appropriate, particularly when the investment can potentially generate an economic return. (120) The international community has had on its agenda for many years a commitment to boost the effectiveness of development cooperation, through strengthened mutual accountability in the relationship between an ODA-receiving country and its donors. This, among others, is a concern of the Development Cooperation Forum of the United Nations (DCF), established in 2007.Through its regular multi-stakeholder dialogues and policy analysis, the DCF provides guidance, inter alia, on how to manage international financial and technical cooperation for development more effectively. The pursuit of effectiveness was further marked by four meetings of the High Level Forum on Aid Effectiveness in Rome (2003), Paris (2005), Accra (2008) and Busan (2011), which lead to the establishment of the Global Partnership for Effective Development Cooperation (GPEDC). The first High-Level Meeting of the GPEDC was held in April 2014 in Mexico City.
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Figure 6: Indicative targeting of international public financing according to countriesâ&#x20AC;&#x2122; levels of development and different sustainable development needs
(121) A further concern raised in the Committee with respect to development effectiveness relates to the fragmentation of international public financing and the decentralized and independent decision-making processes of bilateral and multilateral donors. Donor countries should improve the management and coordination of international public support, though increased joint planning and programming on the basis of country-led strategies and coordination arrangements. They have long sought to reduce the burden of disparate reporting requirements, compliance with which absorbs considerable resources in the receiving country. The call thus continues to go out for transparent and harmonized financing conditions, procedures and methodologies. (122) In order to reduce the fragmentation and complexity of environmental and climate finance, in particular, effective rationalization of the overall architecture is needed. In the area of climate finance, the UNFCCC Parties agreed to establish the Green Climate Fund as an operating entity of the financial mechanism of the Convention under Article 11. It will serve as a multilateral instrument through which governments and other fund providers could channel grants and concessional loan resources to support projects, programmes, policies and other activities in developing countries.66A significant share of new multilateral funding for climate change adaptation should flow through the Green Climate Fund, as agreed at UNFCCC COP 16.
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(123) At the same time, partner capacities need to be strengthened in order to better manage assistance from diverse providers, as part of their national sustainable development financing strategies. Countries should jointly create and use facilitative platforms to encourage operational coordination among international funds and initiatives. Funds and programs, including environmental funds, need to support synergies across sectors at the national and local levels. The rules of the existing funds and instruments should be adapted to ensure that they encompass all relevant activities in a synergistic way. D.
International private financing
(124) Similar to domestic private finance, international private finance contains a wide range of flows, including foreign direct investment (FDI), portfolio flows and cross-border bank loans. Some of these flows are blended with public finance as discussed below (Section VI.E). International institutional investors, including sovereign wealth funds, hold an estimated US$80-90 trillion in assets, representing an enormous potential source of investment. However, to date their investment in sustainable development – in both developed and developing countries–has been low. Pension funds, for example, invest only 3 per cent of their global assets in infrastructure.67This highlights the need for government policies to help overcome obstacles to private investment, in conjunction with additional public spending. As such, many issues discussed under domestic private finance (Section VI.B) apply here as well, but this section focuses on issues particular to cross-border investments. Channel international funds towards long-term investment in sustainable development (125) FDI remains the most stable and long-term source of private foreign investment to developing countries, and has a critical role to play in financing sustainable development. However, policymakers need to monitor the quality of FDI to maximize its impact on sustainable development. Governments should, as appropriate, adopt policies that encourage linkages between multinational enterprises (MNEs) and local production activities, support technology transfer, provide local workers with opportunities for further education, and strengthen the capacity of local industry to effectively absorb and apply new technology. Corporations that embrace human rights principles, labour, environment and anti-corruption values, as in the Global Compact or other international social and environmental standards, may serve as a model for other enterprises. At the same time, host governments should require all companies, including foreign investors, to meet the core labor standards of the International Labor Organization, and encourage EESG reporting, making sustainable development an essential element in company strategies. (126) Investors are unlikely to invest long-term in countries where they have concerns about policy and regulatory regimes, highlighting the importance of an enabling environment, as discussed in Section VI.B on domestic investment. Furthermore, investors often point out that a major impediment to investment is the lack of ‘bankable projects’ competitive with other investment opportunities, underscoring the need for capacity development for project preparation in many countries. 67
UNTT Background Paper 3: Challenges in raising private sector resources for financing sustainable development
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(127) At the same time, investorsâ&#x20AC;&#x201D;including those with long-term liabilities, such as pension funds, life insurers, and SWFsâ&#x20AC;&#x201D; have been hesitant to invest in long-term sustainable development projects across a wide range of policy and regulatory regimes.68One impediment is that many investors do not have the capacity to do the necessary due diligence to invest directly in infrastructure and other long-term assets. Instead, when they do make these investments, they do so through financial intermediaries, whose liabilities and incentive structures tend to be shorterterm. (See Figure 5 for a breakdown of long-term and shorter-term investors.)69 If long-term investors were to bypass intermediaries and invest directly, they could adopt a longer-term horizon in their investment decisions. However, it is often not cost effective for diversified investors to build this expertise in-house. There is thus a need for new instruments in this area. For example, investor groups could build joint platforms, e.g. for sustainable infrastructure investments. This is already beginning to happen (e.g. South African pension funds setting up a jointly owned infrastructure fund). Public actors, such as multilateral and bilateral DFIs, can also help set up investment platforms, as discussed in Section VI.E on pooled financing. (128) In addition, policies can be designed to lengthen investment horizons, such as through a reduction of the use of mark-to-market accounting for long-term investments (in which portfolio valuations are adjusted daily, thus incorporating short-term volatility into portfolios) and changes to performance measurement and compensation (to change incentives, and potentially incorporate sustainability criteria), among others. Manage volatility of risk associated with short-term cross-border capital flows (129) While private capital flows to developing countries have risen during the past decade, some types of flows remain highly volatile. Conventional approaches to managing volatile cross-border capital flows have focused on macroeconomic policies to enhance an economyâ&#x20AC;&#x2122;s capacity to absorb inflows. However, these policies are often not sufficiently targeted to stabilize financial flows and may have undesired side effects. Policymakers should thus consider a toolkit of instruments to manage capital inflows, including macroprudential and capital market regulations, as well as direct capital account management.70 (130) In addition, international coordination of monetary policies of the major economies and management of global liquidity can reduce global risks. Similarly, stronger regional cooperation and dialogue, and regional economic and financial monitoring mechanisms can help stabilize private capital flows at a regional level.
ibid While large fund managers manage more liquid portfolios in-house, most investors use external managers for such investments. See UNTT 2013, Background Paper 3 70 Stiglitz, et al, Stability with Growth, Oxford University Press, 2006. 69
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Facilitate the flow of remittances and private development assistance (131) Migrant remittances represent a large source of international financial flows to some developing countries. However, remittances fundamentally differ from other financial flows in that they represent a private transaction and are often based on family and social ties. Remittances enable households to increase consumption and invest in education, healthcare and housing.71Policymakers and IFIs should explore innovative approaches to incentivize investment of remittances in productive activities, including through issuance of diaspora bonds. (132) The cost of remitting funds, however, remains extremely high, at 8.4 per cent of the amount transferred.72Increased cooperation between remitting and receiving countries should aim to further reduce the transaction costs and barriers for remittances. The G20 initiative to lower the cost of remittances is an important effort in this regard, and should be continued and strengthened. However there is some evidence that international banks are reducing their role in this sector,73as an unintended consequence of a closer monitoring of banks in response to money laundering. Policy measures might be needed to ensure competition and monitor costs. (133) Philanthropy, i.e. voluntary activity by foundations, private citizens and other non-state actors, has also significantly expanded in its scope, scale and sophistication. It has provided significant resources for global health funds in particular (see Section VI.C.) In addition to financial resources, philanthropy provides intellectual capital, technical capacity and extensive experience. Better data on philanthropic flows could help better assess their impact, improve coordination and help to streamline financing, reduce overlap, and maximize their sustainable development impact. E.
(134) Policymakers have recently shown considerable interest in a class of development financing opportunities called “blended finance” that pool public and private resources and expertise. Blended finance encompasses a large portfolio of potential instruments, including instruments provided by DFIs to leverage private finance (e.g. loans, equity investments, guarantees etc.), as well as traditional public private partnerships (PPPs) (see Table 1 below). But it goes beyond these structures to encompassstructured public-private funds and innovative ‘implementing partnerships’ between a wide range of stakeholders - including governments, civil society, philanthropic institutions, development banks and private for-profit institutions. When well designed, blended finance allows governments to leverage official funds with private capital, sharing risks and returns, while still pursuing national social, environmental and economic goals in areas of public concern. (135) It is important to note however that poorly designed PPPs and other blended structures can lead to high returns for the private partner, while the public partner retains all the risks. Careful
IMF, 2013 World Bank, 2014, Migration and Development Brief 22. April 11, 2014 73 http://dealbook.nytimes.com/2014/07/06/immigrants-from-latin-america-and-africa-squeezed-as-banks-curtailinternational-money-transfers/ 72
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consideration needs to be given to the appropriate use and structure of blended finance instruments, as discussed below. Strategically assess the use of blended financing and innovative partnerships (136) Blended finance can be a useful financing tool when the overall benefit of a project or investment is sufficiently large that an attractive benefit is still available to the public sector after the private partner is compensated. It can be used in a range of areas, such as infrastructure projects and innovation. There is a strong case for blended financing to facilitate investments that are just below the margin of real or perceived commercial viability, and cannot be unlocked by an enabling policy and institutional environment alone, but also serve public interest. On the other hand, blended finance between the public and for-profit private sector is less well suited to contribute to the provision of basic development needs that do not offer an economic return. (137) Blended finance projects should be transparent and accountable. Participation in projects should be selected in a fair and open process. To further improve their sustainable developmental impact, poverty, environment, and gender aspects should be addressed in the project design phase. (138) In undertaking blended finance projects, project costs need to be carefully assessed. Private investors often demand upward of 20–25 per cent annual returns on ‘bankable projects’ in developing countries. These costs need to be offset by efficiency gains or other benefits to make their use attractive. Furthermore, projects often struggle to deliver as planned, in both developed and developing countries, with a 25-35 per cent failure rate of PPPs in developed countries due to delays, cost overruns and other factors,74 and even higher failures in developing countries. It is therefore important for policymakers to engage in blended finance structures with careful planning, design and management in order to strike a balance between economic and non-economic returns, and to ensure fair returns to citizens. Significant capacity is needed to design workable structures that share the risks and rewards fairly. ODA and other forms of assistance can play a role in capacity building of developing countries in this regard. (139) Engagement in isolated PPPs, managed in silos, should be avoided. The investing public entity should carry out a number of projects simultaneously and thereby take a portfolio approach for pooling funds for multiple projects, similar to risk diversification carried out by DFIs and the private sector. n such an approach, mechanisms with equity “upside” would allow for gains from successful investments to compensate for losses on failed projects. This would be particularly appropriate for investments in innovation, where both risks and returns are extremely high.
Directorate-General for External Policies of the Union, April 2014, Financing For Development Post-2015: Improving The Contribution Of Private Finance, p. 30
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Public Private Partnerships
Performance Based Instruments
Credit guarantees Donors take on some portion of the risks associated with private sector or partner government activity. Political-risk insurance Credit is thereby made available, or the cost of credit is reduced Advanced market An ex-ante commitment for public purchase of Future commitments by governments or donors to commitments (AMCs) supply transfer resources to the private sector upon prespecified conditions being met. Provide the private sector with flexibility in delivering Social or development impact Contingent contract with a particular investor for outcomes (rather than outputs) and can, for example, bonds repayment on delivery of impact-based results facilitate credible government commitment to payment schedules when there are large upfront private sector investments required. A modality of cooperation with the private sector based on a combination of instruments or negotiated outcomes Require other inputs (such as experience, expertise and bankable projects) in addition to the employment of the financial instruments listed. Donors can facilitate PPPs by: oProviding technical assistance and/or project preparation facilities that offer support to both government and the private sector oDirecting multilateral organisations to bolster their efforts at facilitating PPPs oProviding other financial incentives to make PPPs more attractive
Risk Based Instruments
Competitive process to award funding for innovative projects, and to support expansion to scale for those proving success Transfer of resources in return for an ownership stake Funding generally designated as a subordinate equity interest Provision to protect financier from default Protection against select (rare but costly) policyoriented risks
Challenge funds and innovation ventures
Financial contribution to make investment commercially viable
Viability gap funding
A direct transfer of resources from donors to the private sector, either through grants, or through equity investment.
Direct Market Interventions
Majority of ODA–eligible, bilateral loans are provided from government to government for investments in economic infrastructure and water and sanitation infrastructure, and are provided to middle income countries Development Finance Institutions (DFIs) also make loans directly to the private sector. While many DFIs operate below a commercial rate of return, the majority of their activity is not ODA eligible.
Table 1: Blended Finance Instruments
(140) In addition, innovative partnerships have been developed to finance sustainable development, and particularly global public goods. For example, the Global Fund to Fight HIV/AIDS, Tuberculosis and Malaria, pools philanthropy, traditional public sector and innovative financing and has further used innovative governing structures and allocation mechanisms to provide targeted assistance. Explore the potential contributions of DFIs in support of blended finance (141) DFIs, both multilateral and bilateral, can play an important role in blended finance. DFIs should continue to make efforts to optimize their balance sheets and make full use of their risk bearing ability, including by the use of all instruments, such as concessional/blended loans, equity, guarantees as well as non-concessional financing and innovative instruments. If these instruments are used to overcome existing financial barriers, they can have a considerable impact on the mobilization and use of private funds for sustainable development. (142) As discussed in section VI.D on private international finance, in areas where impediments to direct investment exist, including infrastructure, innovation and SMSEs, there is a need for new financing structures that can better pool and share investment risks, along with increased public financing. Such platforms can be national or global. At the national level, the United Kingdom recently developed a Pensions Infrastructure Platform that will facilitate investment from British pension funds in public infrastructure projects backed by the UK Treasury. Similarly, the French “CDC” (Caisse des depots et consignations) has been converting households’ savings deposited in a specific savings account (Livret A) to fund social housing projects as well as local governments’ infrastructure projects. (143) In addition to pooling funds, these types of platforms pool expertise and knowledge between investors and the government, and help overcome some of the informational constraints that impede direct investment. Other countries could consider creating similar platforms within existing DFIs and/or stand-alone platforms or country funds. In addition, entities with high credit ratings can also issue long-term (say 20-30 year) bond financing to leverage these structures, which can facilitate investment by long-term funds that are unable to invest directly. Similarly, the World Bank is developing a Global Infrastructure Facility (GIF) which will seek to mobilize additional resources and leverage these in support of infrastructure investments, including through complementary measures to strengthen the policy and regulatory environments and improve project quality. The African Development Bank has launched the Africa50 Infrastructure Fund. Strengthen capacity development efforts (144) Blended finance valuations and contracts are typically complex and require significant public sector capacity for design, negotiation and implementation. Public institutions need to build and cultivate expertise and capacity accordingly, and here ODA can make a critical contribution. Project preparation funds would also need to be commensurately increased. The preparation of robust feasibility studies, which multilateral and bilateral DFIs could support, is critical to the successful costing, structuring and delivery of these mechanisms. Capacity building efforts should focus on
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feasibility studies, negotiation of complex contracts, and the professional management of partnership activities. Efforts should, however, aim to develop local skills and capacity, rather than exclusively focusing on specific projects. Appropriate enabling environments need to be created as well. International development actors and governments could establish policy dialogues to build a knowledge base and â&#x20AC;&#x2DC;skills bankâ&#x20AC;&#x2122;, and to share information and lessons learned about blended finance at the national, regional and/or global level. Increased cooperation and dialogue with investors, bankers and companies would also be needed.
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Global governance for financing sustainable development
(145) To mobilize the financing detailed in the preceding section and to facilitate its effective use according to national priorities, it is necessary to have an adequate enabling international environment and policy architecture that provides the policy space necessary to implement effective national sustainable development strategies. This entails open and dynamic world trading and investment systems that are deemed fair to all, support sustainable development and poverty reductionand that respect social and environmental standards. An enabling international environment that reduces fragmentation and complexity of international public finance (including environmental finance) would ensure adequate capitalization of exiting funds and simplification and harmonization of rules for international public funds. (See Section VI.C.) It could expand international cooperation on innovative financing, particularly with regard to global public goods. An enabling international environmentincludes active global cooperation to remove the sources of international financial volatility, while striving to reduce global financial fragility. Other actions include completing ongoing reform processes of development banks and the IMF, deepening international cooperation on taxes and illicit flows, regulating banks and shadow banking systems and strengthening the means for cooperatively resolving sovereign debt difficulties. In short, it entails a strengthened global partnership for sustainable development. Strengthen systemic coherence and global economic governance (146) The global economic environment is overseen by separate and sometimes uncoordinated international bodies. Reflecting its existing mandate, the United Nations has the ability to serve as the global forum to bring the specialized international institutions and authorities together without challenging their respective mandates and governance processes. There is also a need within the UN system to reinforce the coherence of financing frameworks that developed out of two major strands of development debate â&#x20AC;&#x201C; the Post-Monterrey and the Post-Rio+20 means of implementation. More broadly, there is a need to strengthen the integration and harmonization of existing international mechanisms, frameworks and instruments, including through the UN System Chief Executives Board, while avoiding the proliferation of new support vehicles as much as possible. (147) The effectiveness and legitimacy of international organizations also needs to be further strengthened. The IFIs, including the World Bank and the other international development banks, and specialized mechanisms such as the Global Environment Facility and the Green Climate Fund, have the potential to increase the mobilization and deployment of finance for sustainable development, and to facilitate learning and knowledge sharing within their respective mandates. They would also be well placed to significantly expand the use of risk sharing instruments. It is important for IFIs to continue to take steps to align their own business practices with sustainable development objectives. Other proposed initiatives, such as reserve pooling and trade facilitation mechanisms, also have roles to play. The international community will benefit from such experimentation and innovation. (148) In addition, a further review of the governance regimes of the IFIs is necessary to update their decision making processes, modus operandi and priorities, and to make them more democratic and representative. The IMF and the World Bank have been making efforts to further integrate the 42
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voices of emerging market and developing countries, to reflect their growing importance in the global finance and development arena. These efforts should be brought to fruition. (149) The normative, analytical and operational activities of the United Nations should also be better coordinated at the global, regional and national levels. Stronger efforts should be made by the UN system to implement fully the provisions of UN GA resolution 67/226 on the Quadrennial Comprehensive Policy Review (QCPR) and to achieve further progress towards ‘Delivering as one’. On the whole, it is important to encourage flexibility, effectiveness, transparency, accountability and innovation within existing institutional frameworks to promote more effective cooperation and partnership approaches, especially to implement the post-2015 development agenda. Adopt trade and investment rules that are fair and conducive to sustainable development (150) In a globalized world, economies seek to benefit from dynamic trade and investment opportunities. International trade is overseen by a multilaterally agreed system that seeks to be universal, rule-based, open, non-discriminatory and equitable. At the same time, there are numerous bilateral and regional agreements setting additional rules for trade and international investment. (151) Global negotiations on strengthening international trade rules have been stymied for many years. The World Trade Organization’s (WTO) Ninth Ministerial Conference held in Bali, Indonesia in December 2013,produced a package of agreements to advance the multilateral trade agenda (including a Trade Facilitation Agreement and a series of decisions on agriculture, development and LDC issues), but remaining disagreements have stalled its formal adoption. Additional issues relevant to sustainable development are included in the mandate of the Doha Round, such as the liberalization of trade in environmental goods and services, and the implementation of duty-free, quota-free market access for all LDCs. WTO ministers have committed to consider a final work program to conclude the Doha Round of multilateral negotiations that began in 2001. It is time to address politically sensitive issues, such as agricultural export subsidies, and signal that global cooperation on trade liberalization in the interest of global development is still possible. (152) To further facilitate the participation of the poorest countries in the international trading system, in accordance with their own nationally owned strategies, “aid for trade” and the Enhanced Integrated Framework for assisting developing countries and LDCs in particular are of central importance. Trade-related technical assistance, capacity building and trade facilitation and efforts to mainstream trade into development policies should all be reinforced. (153) In addition, the increased prevalence of global value chains has tightened the link between trade and foreign direct investment.75To achieve a better balance between investor rights and the sovereign capacity for recipient states to regulate within areas of public interest, the international community could consider, as appropriate, a further elaboration of standards for investment in
UNCTAD, 2014, The role of trade in financing for sustainable development, Input prepared for the ICESDF
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areas that directly impact domestic sustainable development outcomes, and ensure that investments do not undermine international human rights standards. (154) In general, the proliferation of bilateral investment treaties and other trade agreements covering investment issues renders the mainstreaming of a sustainable development perspective in investment regimes more difficult. Developing countries find it increasingly difficult to navigate a highly fragmented international investment regime, which also risks curtailing policy space for host countries. Steps should be explored toward a multilateral approach to international investment regimes that more adequately balances investors preferences with the needs of residents of the countries in which they would operate, with a view to facilitating a more holistic approach in the interest of sustainable development. Strengthen global financial stability (155) Since the 2007-2008 global financial and economic crisis, the international community has taken important steps to address vulnerabilities in the financial sector through regulatory reform. In these efforts and in any new regulations, regulators need to strike a judicious balance between ensuring the stability of the international financial system and allowing for adequate access to finance. A stable system is essential to support growth and prevent future crises with negative economic and social consequences. However, the unintended consequences of financial regulations may adversely impact the availability of long-term financing, should be addressed by policymakers. (156) Further progress in completing and implementing the reform agenda is essential for enhancing the stability of the global financial system. Financial regulatory reform operates through international bodies that recommend rules and regulations which individual governments then adopt in national practice. While processes of consultation have been adopted by international regulatory bodies, such as the Financial Stability Board, further steps to enhance transparency and the adequate representation of developing country interests in the key international regulatory bodies need to be taken. (157) It is equally important to strengthen the readiness of the international system to respond to crises. The international community should continue to review the capability of the IMF and other international organizations to provide early warning and quickly take countercyclical action and equip them with adequate instruments that would improve the resilience of the global financial system. (158) In particular, a more stable international financial system, and a strengthened global safety net, can reduce the need for countries to stockpile international reserves. Additional research on the appropriate size of reserves, along with alternative insurance mechanisms, such as those based on regional cooperation, should be pursued. Strengthen regional cooperation (159) Strengthened regional cooperation can play an important role in mobilizing financial resources for sustainable development. Among other things, effective regional arrangements can 44
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provide financing for regional public goods, facilitate trade flows and attract investment into key sectors such as infrastructure. Regional cooperation also provides excellent opportunities for information exchange and peer learning in fiscal, financial and economic affairs. In addition, the recent financial and economic crisis has directed new attention to the potential of regional financial stability mechanisms (such as the Latin American Reserve Fund or the Chiang Mai Multilateralization Initiative) to serve as a first line of defense against contagion from global crises. Enhance international cooperation on taxes (160) International tax rules and national tax laws have not kept pace with developments in the global economy, such as highly mobile capital and the predominance of MNEs in international trade and finance. Nations devise their own tax systems to meet domestic needs and have traditionally not coordinated with foreign tax authorities. This has created opportunities for MNEs and international investors to evade and avoid taxes by structuring international transactions to take advantage of different national tax rules. Even when Governments cooperate and devise bilateral tax treaties, their terms differ with different partners, allowing firms to exploit the differences to their own advantage (treaty shopping). MNEs also take advantage of differences in national tax policies by mispricing intra-group transactions (transfer mis-pricing) and by making use of mismatches in entity and instrument characterization (hybrid mismatch). (161) While each country is responsible for its own tax system, international cooperation on tax policy needs strengthening. The enhancement of international tax cooperation could cover countrybased reporting, notification of owners, automatic exchange of tax information, transfer pricing regulations, lists of tax havens and standards for non-economic reporting. G-20 Leaders have endorsed the OECD Action Plan on Base Erosion and Profit Shifting (BEPS) and automatic exchange of information. The United Nations, with its universal membership and legitimacy, could be a catalyst for further strengthening international cooperation in this area, working with the G-20, the OECD, the IMF, the World Bank and relevant regional fora. To this end, a participatory and broad based dialogue on international cooperation in tax matters should be strengthened. (162) Due to insufficient resources and a lack of specialized knowledge, many developing countries are at a disadvantage when dealing with tax evasion and avoidance practices. In this light, capacity development measures could increasingly focus on international taxation issues. Fight illicit financial flows (163) In addition to policies to counter transfer mis-pricing based on tax evasion, as discussed above, best use should be made of existing international standards and instruments in the field of anti-money laundering (including the Financial Action Task Force, FATF, and its network of regional bodies), anti-corruption (United Nations Convention against Corruption, UNCAC) and asset recovery (the Stolen Asset Recovery Initiative, StAR). (164) Tax evasion, money laundering and corruption are facilitated by jurisdictions with regulatory regimes that allow companies and individuals to effectively hide money. Both domestic actions aimed at minimizing the flow of funds to secrecy jurisdictions and international cooperation to 45
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increase financial transparency will be needed. They include exchange of information, country-bycountry reporting and publicly available company beneficial ownership registers, effective implementation of the Financial Action Task Force (FATF) standards and asset recovery. Strengthen sovereign debt crisis prevention and resolution (165) Sovereign debt crises severely impede nations’ efforts to finance sustainable development, with debt crises often leading to a spiral of capital flight, devaluations, rising interest rates and unemployment. Effective debt management to prevent debt crises is recognized as a priority. However when crises do occur, there is an urgent need to fairly and quickly resolve them. The international community has adopted and repeatedly strengthened a comprehensive framework for resolving sovereign debt crises in a group of heavily indebted poor countries (HIPCs). For bilateral official debt, the Paris Club and its Evian approach exist to restructure debt owed to its members. However, globally the landscape for debt has changed: the HIPC initiative is almost completed, and sizeable debt is owed to non-Paris Club countries and the private sector. (166) A survey of recent international debt restructurings has shown that the market-based approach to restructure debt owed to private creditors needs further improvements.76 Many debt restructurings are considered insufficient and are often delayed, with high costs for the populations of debtor countries. Recent developments with regards to Argentina’s holdout creditors have led to a deep concern about the ability of holdout creditors to derail the success of a debt restructuring, both for developed and developing countries. (167) There are two alternative solutions generally proposed for handling sovereign debt restructurings: a market based contractual approach through provisions in contracts, such as collective action clauses (CACs) in bond covenants, and a statutory approach akin to national bankruptcy regimes. In 2003, partly in response to the 2002 Argentine default, the IMF proposed a Sovereign Debt Restructuring Mechanism (SDRM), though there was little political support for such a mechanism at the time. Instead, the use of CACs became widespread in emerging market bond issuance. By 2005 almost 100 per cent new international bonds issued included CACs, though a large stock of bonds without CACs remains outstanding. However, some authors have found that the presence of CACs alone may not be sufficient to ensure fair and effective debt restructurings in all cases.77The inclusion of aggregation clauses could help make CACs more effective with respect to holdout creditors. (168) Discussions on how to improve the framework for sovereign debt restructuring for countries indebt distress are taking place in various official forums, in policy think-tanks and in the private sector. In particular, work is ongoing in the United Nations system, including in the IMF, UN-DESA and UNCTAD.78 In addition, there are calls for action on an effective and fair sovereign debt restructuring and debt resolution mechanism, taking into account existing frameworks and 76
IMF, 2013,Sovereign Debt Restructuring – Recent Developments and Implications for the Fund’s Legal and Policy Framework, April 77 Bi, Chamon, and Zettelmeyer 2011; Bradley, Cox, and Gulati 2010; Das, Papaioannou, and Trebesch 2012; Stiglitz 2003 78 See http://unctad.org/en/Docs/gdsddf2011misc1_en.pdf
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principles, with the broad participation of creditors and debtors, and for the comparable treatment of all creditors. Given the importance of sovereign debt crisis and debt overhangs to financing sustainable development, it is important for the international community to continue ongoing efforts to enhance the existing architecture for sovereign debt restructuring. Furthermore, collaborative efforts to improve the timeliness and coverage of sovereign debt data based on both creditor and debtor reporting systems could lead to more reliable debt sustainability assessments. Foster harmonized monitoring and accounting systems and a data revolution (169) Strong, relevant and comparable data is the basis for improved global governance and sustainable development follow-up. Yet, current information flows, reporting standards and monitoring mechanisms are overlapping, contradicting, incomplete in coverage and often inaccessible to development actors. In order to improve the quality of statistics, it will be important to reduce the fragmentation of current reporting frameworks and initiatives and increase their harmonization. The international community should agree on suitable monitoring frameworks for the post-2015 development agenda that keep track of sustainable development financing flows from all sources, with transparent and separate reporting for development and climate finance commitments. Efforts are also needed to work towards a harmonization and increasing integration of monitoring and accounting frameworks to consider all financing sources and their interplay at the country level. In addition, existing monitoring and reporting frameworks should be improved to avoid incentivizing the use of instruments that do not support sustainable development objectives. (170) Accordingly, national statistical capabilities should be strengthened. Capacity building initiatives and exchanges of experiences and practices should support developing countries and LDCs in particular in tracking, monitoring and evaluating the impacts and performance of different types of financing flows. Enhanced national capacities for monitoring and accounting of financing flows, including through the adoption of appropriate standards and reporting at a country-wide level, would also contribute to ensuring mutual accountability and global transparency. The potential of combining active (e.g. reporting) and passive (e.g. websites) transparency mechanisms to ensure disclosure and transparency to stakeholders, constituencies and beneficiaries should be further explored. (171) To enable the sharing of data, for example on blended finance, actors could establish a research data protocol, which would build on existing reporting standards and be used to collect project-related data and make it publicly available. (172) Recent work by the World Bank provides a useful starting point for assessing sustainable development needs and related policy and financing priorities to achieving them, using a modelbased diagnostics tool and drawing on a multi-country data base. The analysis has been applied to Uganda as a pilot and is being extended to 10 additional countries with diverse characteristics. Strengthen global partnership to facilitate effective sustainable development cooperation (173) The global partnership for development as set out in MDG 8 and the Monterrey Consensus represents a set of commitments by both developed and developing countries on promoting 47
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development. The post-2015 development agenda will have to be underpinned by a renewed and strengthened global partnership for sustainable development, defining a compact of commitments by Member States of the United Nations, while providing space and flexibility for engagement with a wide range of stakeholders. There are global platforms aimed at enhancing the impact and effectiveness of development cooperation, including the Development Cooperation Forum of the United Nations and other existing initiatives. (See Section VI.C.) (174) The effective cooperation for sustainable development, including its financing aspects, requires a global partnership with the meaningful involvement and active participation of developing and developed countries, multilateral and bilateral development and financial institutions, parliaments, local authorities, private sector entities, philanthropic foundations, civil society organizations and other stakeholders. Ongoing efforts to strengthen the global partnership for sustainable development cooperation should take into account relevant UN conferences and other initiatives, and be based, inter alia, on the principles of country ownership, focus on results, delivery through inclusive partnerships, transparency and accountability to one another. In this context, the complementary nature of South-South Cooperation to North-South Cooperation applies. As part of the post-2015 development agenda, the processes for boosting the impact and effectiveness of development cooperation should be continued and enhanced.
(175) In the preceding pages we have laid out the conclusions of the work we have jointly carried out over the last twelve months. We trust that the policy options presented in these pages, and the strategic approach that our work is based upon, will provide a basis for future discussion on financing sustainable development and will inform, together with the report of the Open Working Group on Sustainable Development Goals, the intergovernmental negotiations for the post-2015 development agenda. (176) We expect that the recommendations and analysis in our report will stimulate discussions among all stakeholders and inspire new ideas and innovative solutions. Many of our recommendations call for exchanging ideas and sharing experiences between countries and for enhanced international cooperation based on a renewed global partnership for sustainable development. The third international Conference on Financing for Development and its preparatory process will bring together all stakeholders and provide an opportunity for advancing these discussions. We look forward to progress being made in these areas, in the context of the Addis Ababa Conference and beyond.
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KEY COMMENTS Beyond2015 Reaction to the Outcome Document of the Open Working Group on Sustainable Development Goals August 2014
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Beyond 2015 key comments to the Outcome Document of the Open Working Group on the Sustainable Development Goals (OWG) Beyond 2015, a global civil society campaign consisting of over 1000 CSOs in over 130 countries, has actively engaged over the lifetime of the Open Working Group, participating in meetings, contributing concrete proposals and engaging with Member States and other stakeholders. Beyond 2015 recognizes the openness and participatory approach of the OWG, which allowed space for non-governmental actors to exchange ideas and present proposals. Beyond 2015 looks forward to continued openness and transparency in the forthcoming negotiations on the Post-2015 agenda. Over the next year of negotiations, the framework must move forward in key respects. It should aim higher by building on key values of participation, human rights and environmental sustainability, and by extending the content of goals on climate change, equality and peaceful and inclusive societies; it must move forward by addressing the means of implementation for the goals, strengthening the interlinkages between goals, and agreeing an extensive and robust accountability mechanism.
Aiming higher: The OWG outcome document is a good starting point for the intergovernmental negotiations on the Post2015 development agenda. Nevertheless, the OWG's proposals must represent the floor, not the ceiling of the ambitions for a truly transformative and people-centered framework. The levels of commitment and engagement from Member States in the negotiation process so far show the political will needed to agree on a universal and transformative agenda. To realise this transformation, the goals must do more to express key values of participation, human rights, and environmental sustainability, and the content of crucial goals on climate change, inequality, and inclusive societies must be strengthened.
On Participation Since its inception, Beyond 2015 has pushed strongly for the participation of those most affected by poverty and inequality in the design, implementation and monitoring of the post-2015 agenda. The documentâ&#x20AC;&#x2122;s chapeau is clear on the central importance of people and this is very positive. However, the OWG outcome document does not reflect this by guaranteeing participation of, and accountability to, those most affected by poverty and injustice across the framework; nor does it prioritise those populations clearly enough by addressing structural root causes. Disaggregation (Target 10.2) enables a focus on those most affected by poverty, inequality and injustice, and highlights divisions between social groups as targets for action. Disaggregation should be further expanded according to national context, including using community-based approaches, in consultation with civil society and the most vulnerable groups. On Human Rights We welcome paragraph 7 in the Chapeau that clearly reaffirms international human rights commitments. However, this alone does not make the SDGs human rights-based. The proposed SDGS do not properly frame goals and targets around existing human rights obligations; do not promote the integration of a human rights based approach; and fail to guarantee human rights accountability, including for the private sector. These shortfalls have the potential to undermine the effectiveness - and indeed the basic purpose - of the Post-2015 agenda. Conversely, clear references to human rights would strengthen the SDGs by clarifying the responsibility and answerability of the Goals.
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We also strongly regret that targets to hold companies accountable for their impact on human rights are no longer present. We welcome the goal on gender equality and the empowerment of women and girls and acknowledge that the targets under this goal address some of the most fundamental barriers to equality. Beyond 2015 is concerned, however, that the proposed gender goal does not explicitly refer to and support the full realization of women and girls’ human rights. For example, the omission of sexual rights undermines women's ability to participate equally in all spheres of society, and weakens the human rights of people of all sexual orientations and gender identities to have control over and decide freely on matters related to their sexuality and reproduction free from coercion, discrimination, or violence. Furthermore, the proposed targets and their accompanying means do not go far enough in addressing the structural changes needed to realize substantive equality, e.g. in areas of employment, the reduction and redistribution of unpaid carework and women’s control over assets. Nor do they recognise the differential impacts of environmental threats on the lives of women and girls, or their distinctive role in contributing to sustainability, and to peacebuilding activities.
On Equality Goal 10 - “Reduce Inequality within and among countries” - is one of the most transformative goals proposed by the OWG. By including this goal, the new development framework commits to address both economic inequalities and forms of discrimination that affect poor, marginalised and vulnerable social groups. Only a goal with both of these components will truly “leave no one behind”. Goal 10 makes important commitments on fighting discriminatory laws and practices (Target 10.3) and fiscal, wage and social protection policy (Target 10.4). We welcome the focus on addressing inequalities between countries, especially Target 10.6 on enhancing the voice and representation of developing countries in decision-making. A goal to reduce inequality must, however, commit to measure and address economic inequality between the richest and poorest and to reduce the absurd and accelerating differences between the top and bottom 10-20% of populations. The framework should explicitly specify that no target should be considered met unless it has been met for all, including the poorest and most marginalised groups. The commitments in the outcome document to social protection systems and floors,and universal health coverage truly accessible to the poorest must be maintained in the upcoming negotiations. On Environmental Sustainability Global resource constraints and planetary boundaries in the proposed SDGs must be clearly acknowledged. The Post-2015 framework cannot afford an approach that promotes growth at all costs without considering human rights and environmental implications. We welcome the inclusion of references to “Mother Earth” in the Chapeau (Paragraph 9), the need to promote harmony with nature, and the importance of regulatory and accountability frameworks that enable the protection of the environment. Nevertheless, the goal to promote economic growth (Goal 8) does not take into account the environmental dimension of sustainability at target level, except in one target to “endeavour" to "decouple economic growth from environmental degradation” (Target 8.4). The framework must demonstrate coherence and integration across the environmental, economic and social dimensions of different goals and targets. Greater emphasis is required on equitable access and sharing as well as inclusive and participatory management of natural resources and ecosystem services, especially for people living in poverty, indigenous peoples and vulnerable communities. Natural resources and ecosystem services underpin all human and economic activities hence, this focus needs to cut across the entire framework. Goals 7, 8, 9 and 16 lack this focus, as do 12 and 13. Goals 1, 2, 5, 14 and 15 whilst better, can still do more to reflect the environmental pillar of sustainable development.
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On Climate Change We fully support the maintenance of this Goal in the SDGs, and the inclusion of a strong paragraph on climate change in the Chapeau (Paragraph 8). Beyond 2015 recommends reinserting a target on holding the increase in global average temperature below 1.5°C rise. There is also a need to include more specific and quantified targets under this goal to adequately address the most fundamental challenge of our time. The SDGs must be designed so as contribute to a global low-carbon, green development pathway and to keeping global warming below dangerous levels.
On Peaceful and Inclusive Societies Beyond 2015 strongly welcomes the retention of a goal on peaceful and inclusive societies, and specifically the reference to access to justice and governance. Targets 16b on the promotion and enforcement of nondiscriminatory laws and policies and 16.7 on participatory decision-making are especially important. We regret to see that language on prior and informed consent of indigenous communities has disappeared. The current goal does not go far enough to guarantee political and civil freedoms or ensure the protection of human rights. Wording and content should be improved to focus on outcomes and people, rather than state outputs and capacities, and to ensure the protection of human rights (including for vulnerable populations affected by conflict such as refugees and internally displaced persons - IDPs) and human rights defenders. On peace specifically, evidence suggests that society’s ability to manage conflict peacefully is crucial to peace, but none of the targets effectively promote this. More widely, peace can be promoted across the framework through addressing issues such as jobs, natural resource management and inequalities between people and social groups.
Moving Forward: The proposed goals and targets often miss the interlinkages between the three dimensions of sustainable development, undermining a coherent and holistic approach. Questions of indicators, universality and differentiation, and the responsibility for and governance of the new framework, all need to be resolved in the negotiations moving forward. On accountability The Post-2015 framework must be underpinned by the strongest, most robust and comprehensive accountability framework possible, incorporating the commitment to monitor and report on progress and share learning and knowledge. This will help build a global partnership towards achievement of the SDGs that makes all actors – governments, civil society and private sector – accountable. Accountability should be, first and foremost, to those the SDGs are designed to help – the poorest and the most marginalised. Only through hearing the voices of the poorest and most marginalised can we be sure that their lives are truly improving; only through protecting and valuing their participation do we respect and empower them. Hence, mechanisms at the local and national levels, as those closest and most accessible to affected populations, must be strengthened and must feed into processes at regional and global levels. Furthermore, the universal nature of the SDGs creates an urgent need to assess each country's contribution to global realisation of these goals. A key challenge will be to assess the extraterritorial impacts and contributions of states, including to the reform of global governance, trade and finance. The contribution of all actors to the global responsibility for realising this agenda must be assessed. Governments, as duty-bearers and signatories to the framework, have a responsibility to commit to ensuring accountability of all relevant actors in these respects. This will require a multilevel domestic, regional and
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global system. Accountability cannot exist without an enabling environment of capacity building, freedom of association and information, transparency, independence and fairness, and broader mechanisms to ensure the effective participation and influence of all people in decision-making processes. The accountability framework of the Post-2015 agenda must include clear directions for governments to provide a conducive environment for citizens, civil society and voluntary organisations to hold governments to account. On the means to realise the goals Too many of the proposed means of implementation targets - on trade, development finance etc. - sound like 'business as usual'. For example, targets requiring international cooperation to change global economic structures that cause poverty such as illicit financial flows, tax evasion and odious debts are very limited in scope. It is not clear that these will achieve the transformative shift envisioned in the chapeau and expressed by many of the goals: an approach tied too closely to the economic status quo and its approach to growth risks undermining the realisation of a transformative agenda. The gap between the cost of implementation and the finance currently available has not been adequately addressed, much less resolved. The OWG outcome document touches on global issues of responsibility, but the nature of broader means of implementation, and who must do what to realise the agenda, must be agreed over the next year if the goals are to be a success. Participation and the next phase of negotiations In conclusion, the high standard of debate around the Post-2015 framework so far is a direct reflection of an open and inclusive process with multiple channels of input for stakeholders. Only by welcoming a diversity of voices can a legitimate and people-centred Post-2015 framework be designed. It is therefore vital to ensure strong participation of civil society in the process leading up to and following the Post-2015 Summit in September 2015. Full access and the meaningful participation of all groups will be essential to the transparency and integrity of the forthcoming negotiations. In this regard, the OWG has been a strong and successful model.
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Contacts: Leo Williams, International Coordinatior, email@example.com Naiara Costa, Advocacy Director, firstname.lastname@example.org. Fiona Hale, International Officer, email@example.com www.beyond2015.org
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OWG Final Outcome Document Falls Short of Commitment to Development Justice for Post-2015 Campaign for Peoples Goals for Sustainable Development 9 August 2014 The co-chairs of the Open Working Group (OWG) on Sustainable Development Goals finally released the outcome document to feed into the UN Secretary General’s Report to the 68th UN General Assembly. The document outlines 17 sustainable development goals, ranging from poverty eradication, food security, ensuring quality access to numerous basic services, means of implementation, and environmental sustainability among many others. Prior to the publication of the outcome document, the OWG also released two “focus areas” drafts (February 21 and March 19 2014) which reflected the sense of the Member States’ inputs to the formulation of sustainable development goals. These documents were further refined at subsequent OWG deliberations and supposedly formed the basis of the new outcome document. While recognizing some of the positive proposals of the outcome document, it nevertheless contains glaring omissions, gaps and provisions with potentially deleterious implications that need to be criticized and opposed. We also warn against a decontextualized reading of the OWG outcome document which promote the illusion that governments are committed to tackling the multiple crises of our time even as they continue promoting the same old development model and policy package that brought about the crises in the first place. The good intentions of SDGs will not be achieved while neoliberal globalization is intact. The OWG outcome document is not lacking in good intentions. Indeed, one can identify goals on health, education, water and sanitation, and sustainable industrialization, ecosystems, ocean, and sustainable consumption and production as generally positive. It is necessary to stress however, that the next global development agenda for post2015 will not be implemented in a vacuum. Examining current policy trends and strategies pursued by governments, Washington-based international financial institutions, development agencies, and the business sector, we get the following picture:
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1. Accelerating privatization with the aim of capturing sectors that were previously public domain, such as water and sanitation services, education, health, pension systems, etc. 2. Trade liberalization by eliminating hindrances to the expansion of unequal trade between developed and developing countries and the concentration of power in the hands of transnational corporations controlling the trade in goods and services 3. Investment deregulation by facilitating foreign direct investments, speculative capital, and systematic undervaluation of currencies of the South 4. Empowering corporations with new privileges and rights to attack nations by forbidding states from interfering in economic affairs and reducing their role to narrow police functions 5. Subjecting Nature to the laws of the market and actual enclosure of the global commons by the corporate sector Therefore it is essential to examine the OWG’s proposed goals and targets for sustainable development and the emerging Post-2015 development agenda within this larger context. Whatever lofty goals and targets being proposed will have to contend with existing policy measures and objectives that will determine their realization or non-realization. The outcome document recognizes inequality, but concentration of wealth in the hands of the few is passed over in silence. Goal 1 in the OWG outcome document comes under the ambitious banner: End poverty in all its forms everywhere. However, the target that immediately follows under it limits its meaning to eradicating only extreme poverty as measured by the World Bank-defined $1.25/day poverty line. This is anything but ambitious. This poverty indicator is far too low to cover the cost of purchasing essential needs and goods needed to escape poverty. The “graduation” of 1.29 billion people living under this starvation rate will not make their dire and miserable conditions any more acceptable. The outcome document rightly proposes progressively increasing the income growth of the bottom 40 per cent of the population at a rate higher than the national average. However, it fails to include the need for an equitable redistribution of income, in light of labor’s shrinking share in the GDP in contrast with the ever expanding profits of corporations. It does not have any proposal on the establishment of progressive tax systems, including elimination of VAT for essential needs and the implementation of innovative finance measures such as financial transaction tax, currency transaction tax, carbon tax, or billionaire’s tax.
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The goal dedicated to reducing inequality within and among countries (Goal 10) is a welcome inclusion. However, it misses on the fundamental truth about inequality. Even as it proposes ensuring equal rights and access to economic resources, assets, and finance, it does not link this goal as a response to the monopoly control of the wealthy few over investment resources and finances; the corporate capture of natural resources; and the neocolonial plunder of the global South’s resources by wealthy developed nations and their multinational and transnational corporations. The current inequality dilemma is not simply about ensuring that all men and women have equal rights to access and own resources. Equal property right has long been the cornerstone of free market ideology, and we have seen how this “right” has resulted to the unlimited accumulation of wealth in fewer hands. Fighting inequality, therefore, goes beyond ensuring individual rights to property (which is in fact, already being guaranteed under the existing ownership regime). It also means ensuring that the total output of wealth created by humanity’s collective labor is equitably shared and utilized to benefit society as a whole, ensuring that wealth is not overly concentrated in the hands of a few. Social protection is placed in the backburner. Evidence suggests that universal social protection has strong redistributive effects. Though various social protection measures have been integrated in the outcome document at SDG target and indicator levels, the absence of a stand-alone goal on SP endangers it being lost and placed in the backburner. A goal on universal social protection is essential as it increases the chance of governments and their development partners concentrating on investing in national systems of social protection, including social protection floors. But the critical fault of the document is that it ignores the entrenchment of neoliberal policies which for the most part have undermined human development indicators in most regions and weakened governments’ capacity to ensure the progressive realization of people’s rights. For instance proposed goal 3 “Ensure healthy lives and promote well-being for all at all ages” will have to deal with the current drive of governments towards privatization, public-private partnerships, and patents monopolies in international agreements and bilateral, regional and international free trade agreements. The same criticism can be said about proposed goal 3 on equitable quality education” and proposed goal 6 on water and sanitation. As various critics of the MDGs have pointed out, UN development agencies have long promoted the same goals. While progress was made in initial years, ground has been lost since the reduction in public expenditures and the privatization of these sectors.
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The OWG outcome suffers from the critical absence of measures that would expand public and democratic ownership of essential industries, utilities and services. Public ownership remains crucial to delivering social justice and economic democracy, emphasizing economic decision-making as a collective initiative that should be open to broader scrutiny and participation than we have currently. Responding to the economic problems facing societies – problems about social services provisioning or general macroeconomic problems such as determining what goods and service should be produced to serve whose needs, or how to achieve full employment and tackle poverty – requires collective and public stewardship of resources and decision-making, framed around the democratic deliberation of people’s interest and welfare rather than private interests capturing economic decision-making institutions (Cumbers, 2013). The outcome document does not uphold food sovereignty. The outcome document seeks to increase agricultural productivity and incomes of small farmers, but does not have a target ensuring land is owned by the tillers. It also lacked any target addressing the mass acquisition of land in developing countries and LDCs conducted by agro-TNCs and investors from developed countries. This is an unacceptable omission as rural land redistribution and tenure security remain the top agenda of poor farmers, especially in the global South and are vitally linked to their food sovereignty. It is lamentable that some of the more progressive recommendations and statements made by some of the country-delegates, especially from the G77 bloc, in the OWG sessions have not been considered in the targets and indicators of the focus areas document. For example, no reference was made about the strong stance taken by the G77 bloc against the increasing financialization of the agriculture sector that is posing severe threats to the economic and social right to food and nutrition of vulnerable populations in developing countries. The corporate-driven market forces and policies that are enabling big companies to capture seed markets by introducing genetically modified seeds have been proven to have dreadful impacts on the environment, human health and the livelihoods of farmers. These impacts are more pronounced in poor developing nations where farmers are small and marginalized communities, governments are weak, corruption is prevalent and it is much easier for these companies to make their way and monopolize the seed market. The G77 bloc’s strong emphasis about the need for a proper regulation of agricultural commodity markets to avoid excessive volatility and speculative activities was weakly reworded in the outcome document to proper functioning. The outcome document lacks definite targets to ensure environmental justice
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The chapeau noted that there is a consensus about the need to hold global atmospheric rise below 2 degrees Celsius. Curiously, this was not indicated as a target for climate change mitigation goal. There is mention of phasing out fossil fuel subsidies but only insofar as they distort the markets. There are no concrete targets for promoting community-owned and managed renewable energy sources. Another missing is a target ensuring the effective regulation and governance of synthetic biology, especially the development of biofuels and transgenics, to protect public health and the environment and prevent human rights, violations including land grabs. The document “Principles for the Oversight of Synthetic Biology” which was signed by 111 civil society organizations contain useful recommendations to achieve this and would have been an opportune time to translate these insights into actionable targets. Target 15.9 advocates the integration of national accounting of biodiversity and the ecosystem into national and local planning and poverty reduction strategies. While, nature valuation may not necessarily take the form of market valuation, it cannot help but be taken to mean as a legitimation of the commodification of Nature, especially with the UN’s push for “Green Economy” and schemes like ecosystem offsets like carbon trading, carbon markets, and UN REDD+. Market-based schemes such as Payment for Ecosystem Services ignore the multidimensionality and integral nature of ecosystems and disregard the adverse social implications of commodifying nature – including the displacement of communities most dependent on natural resources for their livelihoods and culture. They also offer false assurances of environmental sustainability in the sense that they do not really aim at reducing emissions and curtailing the polluting activities of corporations. Moreover, they also undermine indigenous peoples’ tenure rights to their land and environment. The authors’ of the outcome document could have taken this chance to deliver a stand against PES and such measures that seek to commodify the commons and subject Nature to further market pressures. The outcome document is also deficient in reviewing unsustainable and destructive large scale development projects, viz, mining, large dam projects etc that result in widespread devastation and environmental and social injustices. Finally, the outcome document fails to include a target compelling business to account for social and environmental costs and require them to report on sustainability practices. Instead, it only “encourages” companies to integrate sustainability information into their reporting cycle, relying on the sector’s goodwill and honesty. Civil society organizations have long been calling for stronger regulatory frameworks for corporations, including drawing up a code of conduct for transnational corporations, legally binding rulings against TNCs, and setting up minimum standards for the disclosure of information of TNC activities.
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The outcome document promotes labor-export policy and “migration for development” The outcome document correctly highlights the importance of decent work and employment for all. However, it neglected to address existing policies of labor market flexibility and deregulation, especially in the context of cash-strapped developing economies pursuing foreign investments where employment is made vulnerable, cheap and docile and where workers’ union rights and collective bargaining rights are completely trashed. The chapeau echoes the Declaration of the High-Level Dialogue on International Migration and Development stance on promoting migration as a development opportunity. Target 10.c aims to reduce transaction cost of migrant remittances while 10.7 calls for the facilitation of migration and implementation of planned and wellmanaged migration policies. The document ignores that the phenomenon of migration, especially for those coming from developing countries, is brought about by unjust structures and policies of governments and international institutions that impoverish the vast majority of the world’s population, forcing them to migrate out of necessity and desperation, rather than choice. Governments and international development institutions and platforms like the UNHLD and the Global Forum on Migration and Development (GFMD) become party to the injustice inflicted on migrants by promoting the neoliberal labor export strategy as a means to alleviate poverty and to mobilize resources for “sustainable development.” Developing country governments seek to institutionalize labor export to increase remittances to arrest their sinking economies and project the illusion of growth. Remittances are increasingly being used by the sending-country government to pay its fiscal deficits stemming from unequal trade relations with the developed countries, cover foreign loans or used as guarantee for more foreign borrowings. It leads to jobless growth as the billions of dollars are not utilized to promote national development goals like industrialization and agriculture modernization that could generate employment. The outcome document promotes more trade liberalization and ignores calls for democratic transformation of global governance institutions. The goal on means of implementation has become a battleground over the sharp differences between developed and developing countries. The outcome document reflects these conflicting visions and compromises between the two camps over structural themes on trade, finance and technology transfer. The result is that while the document appears to concede to some of developing countries’ demands on policy and systemic levels, it also retains policies such as trade
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liberalization, deregulation, and aggressive foreign direct investments – the very same policies that have aggravated wealth polarization and underdevelopment in many countries, especially in the developing world, today. For instance, developing countries led by G77 and China asserted developing countries’ full use of TRIPS flexibilities for technology transfer, especially of sound technologies, under goal 17 of the means of implementation and in access to medicines and vaccines. Developed countries, on the other hand, resisted the adoption of flexibilities in TRIPS for developing countries, arguing that if TRIPS had to be mentioned it had to be the general implementation of TRIPS. In the final document, TRIPS flexibilities under goal 17 of means of implementation are deleted. Instead, the TRIPS flexibilities were included in target 3(b) under Goal 3 on health. While this may be an important concession, this simply reiterates the WTO Doha Declaration’s recognition of developing countries’ right to use TRIPS flexibilities in relation to providing medicines for all and protecting public health. An attempt at concession towards least developed countries and developed countries appears to be made with the introduction of a target to increase exports of developing countries and doubling the LDCs’ share of global exports by 2020. However, this is a dilution of the original assertion by developing countries that specifically calls for the improvement of developing countries’ market access. For example, goal 17 target 3 lacks a language on removing “tariff and non-tariff barriers” which developing countries have long been calling for. Target 17.10 argues for an “open and non-discriminatory multilateral trading system under the WTO including through the conclusion of negotiations within its Doha Development Agenda.” In concrete experience, this has meant the warrantless imposition of free-market rules on developing countries and the forced dismantling of mechanisms to support domestic capital accumulation and marginal economic sectors and consumers as these have been viewed protectionist and discriminatory against foreign monopoly corporations. The outcome document promotes the non-discriminatory and parallel elimination of subsidies in world agricultural markets. What the outcome document fails to mention is that developed and least developed countries (LDCs) have long been reducing their tariffs and using minimal subsidies in the past or have been asked by the International Monetary Fund (IMF) to reduce subsidies as part of the IMF structural adjustment program (SAP) of liberalization. Goal 17 target 4 adopts developing countries proposal to provide assistance to developing countries in attaining “debt sustainability” through debt financing, relief, and restructuring and “address the external debt of highly indebted poor countries (HIPC) to reduce debt distress.” However, this omits and dilutes the stronger stance of G77 which calls for the establishment of a “transparent and independent mechanism
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to prevent and address debt crises and its impacts, while taking into account the role of credit rating agencies and the predatory effects of vulture funds.” Additionally, the G77 calls for the cancellation, rather than simply to “address,” HIPC debt. Target 16.8 agrees about the need to broaden and strengthen the participation of developing countries in institutions of global governance but does not elaborate on how to exactly achieve this. Furthermore, there is no recognition about the need to reform global governance institutions, especially the Washington-based global financial institutions, to address their democratic deficiencies and increasing susceptibility to corporate influence and power. Furthermore, the final outcome text removed the initial reference to the creation of a High-Level Political Forum (HLPF), thus frustrating the possibility of the HLPF being adopted by the UN General Assembly when it decides to consider the OWG outcome document. It must be remembered HLPF was originally agreed upon by governments in the Rio+20 document The Future We Want as replacement to the UN Commission for Sustainable Development as the main institution for guiding, implementing, and monitoring sustainable development measures, This accurately captures the observation made by analysts “how intergovernmental negotiations can barely manage to retain the language of previous processes and outcomes, let alone move the language forward to encompass broader and deeper issues” (Muchhala, 2014). The outcome document uncritically endorses private sector-led development. The outcome document lacks reference about global partnership for development in its original meaning as a mode of collective action of developed and developing countries on key development issues, with the developed countries taking the lead in providing resources and the means of implementation. On the other hand, target 17.6 of the means of implementation goal uncritically encourages public-private partnership (PPPs). There is a need to closely examine PPP as a means to finance development priorities for post-2015, especially when concrete experiences by many countries point to its many negative effects. In many instances, PPPs have been wielded as a pretext for creating a smaller public sector by clearing the way for the consolidation and privatization of government-run agencies and corporations. PPPs have also resulted in massive lay-offs of government employees. In some cases, taxpayers even end up financing corporate take-over of public infrastructure and delivery services as provided by conditions offered by governments to entice the private sector. Finally, there is the serious concern about the lack of adequate accountability mechanism and policies to ensure justice in violations by private parties.
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PPPs form part of the general trend of partnerships with the private sector in an effort to revive the all-too familiar market-led strategy dominant among policy makers since the advent of the Washington consensus in the 1980s. And yet we have seen how the profit-maximizing logic and market competition among private enterprises have led to cutting down on wages and erosion of the collective rights of workers; food insecurity among the poor due to higher prices of goods and services; and the aggravation of social inequalities and environmental emergencies caused by big business’ operations. In the current context of depressed economic conditions, PPPs serve to socialize the risks and guaranteeing the profits of private investors. Moreover, the focus on business as the forerunner of the new development agenda and the aggressive push for “partnerships” lead to the obscuring of the ultimate obligation of governments in providing public goods and services and promoting people’s rights. The provision of public goods becomes unreliable as it increasingly becomes dependent on voluntary and ultimately unpredictable sources of financing. This adds pressure to privatize this provisioning, thereby flouting the rights-based understanding of people as rightsholders and governments as duty-bearers compelled to account for their human rights obligations under international and national laws. The outcome document neglects to address foreign occupation as a major stumbling block to world peace and security. A major stumbling block to world peace today is foreign occupation which is primarily driven by countries’ quest for new resources and markets. Rich and powerful states repeatedly violate with impunity UN resolutions and declarations against foreign subjugation, domination and occupation. Multinational corporations loot on colonized nations’ natural wealth, resources, and labor power as spoils of neocolonial wars. Entire populations are displaced and women and children of colonized countries are subjected to gross violations of human rights. The Group of 77 developing countries and China repeatedly urged a specific target on ending foreign occupation rather than simply being acknowledged in the chapeau. Developed countries however resisted the inclusion of foreign occupation in the document or even being mentioned in the chapeau, communicating veiled threats to topple the entire process itself. The outcome document completely sidelines human rights Overall, the outcome document does not recognize, ensure and protect human rights for all which should be a core principle and objective of a just, transformative and sustainable post-2015 global development agenda. This is despite the accompanying 4-page chapeau reaffirming Rio+20’s commitment to uphold human rights.
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The outcome document emphasizes through dedicated goals and interlinkages with cross-cutting thematic priorities education, food security, water, sanitation and achieving environmental sustainability. However, they fundamentally lack the needed human rights orientation to guarantee states’ accountability and strengthen the claimmaking power of people as rights-holders. With the exception of the universal access to sexual and reproductive health and reproductive rights, the outcome document has ultimately failed to employ human rights as the underpinning principle for the realization of sustainable development goals. Notably, the initial proposal of the OWG progress report on ensuring that “business globally respects fundamental human rights, in line with the UN Guiding Principles on Business and Human Rights” is likewise missing. Overall, the outcome document lags far behind previous internationally-agreed treatises and declarations on human rights, including the right to self-determined development of marginalized indigenous communities. All in all… The OWG outcome document is another missed opportunity to introduce a just and sustainable development agenda for post-2015. Even as it tries to comprehensively cover everything under the sun with staggering 17 goals, it still falls short of advocating necessary structural reforms delve deep into the roots of injustice, deprivation, marginalization and ecological disasters today. In the end, the outcome document appears to be just like an expanded version of MDGs with revamped targets. We therefore urge Member States and the Secretary General this coming 68 th UN General Assembly to go beyond aspiring to meet targets and minimum thresholds and spark the debate on alternative development models and paradigms. As the world nears the crucial phase of setting the agenda for negotiation among governments and other stakeholders to achieve global sustainable development goals, it is imperative that a much transformative and bolder perspective and recommendations are adopted to attain an equitable and just post-2015 era.
Works Cited Cumbers, A. (2013). Reclaiming Public Ownership. London: Zed Books. Muchhala, B. (2014, July 24). SDG negotiations reveal the hard fight for means of implementation. Retrieved 10 2014, August, from TWN Info Service on UN Sustainable Development : http://www.twnside.org.sg/title2/unsd/2014/unsd140705.htm
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Reaction to the Outcome Document of the Open Working Group on Sustainable Development Goals INTERNATIONAL MOVEMENT ATD FOURTH WORLD After a year and a half of vast consultation and intensive negotiation, the United Nations’ Open Working Group on Sustainable Development has adopted a set of 17 sustainable development goals (SDGs) that capture the world’s sustainable development priorities for the next 15 years. Informed by the findings of a recent participatory research project on sustainable development, which reached over 2,000 people worldwide, the majority living in poverty, the International Movement ATD Fourth World has been an active stakeholder in the processes. While ATD Fourth World welcomes the final set of sustainable development goals (SDGs), it finds that the goals could better emphasize reaching the poorest and most marginalized people.
Poverty The highest priority for the International Movement ATD Fourth World was to help craft an enhanced set of targets under Goal 1, End poverty in all its forms everywhere. While the goal title is ambitious, target 1.—By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty according to national definitions— falls short. With no clear reference to prioritising those living in the greatest poverty, it could lead governments to target only those easiest to reach. This would contradict the principle of leave no one behind, which can now be found in the document’s chapeau. Findings from the international research project indicate that it is critical to move towards multidimensional and more participatory measures of poverty. Unfortunately, the income-based measure for extreme poverty ($1.25 per day) has been further entrenched under target 1.1. Yet, language like in all its forms (in the goal title) and in all its dimensions (target 1.2) points towards measures that go beyond income. The inclusion of social protection, and particularly, social protection floors under this goal (and also under goals 5 and 10) is an important improvement. Although decent work, a strong aspiration for people living in poverty, can be found under goal 8 on economic growth, it is unfortunate that is missing from this goal and does not have a stand-alone goal.
Leave No One Behind The International Movement ATD Fourth World was very happy to see “leave no one behind” reflected in yet another critical document on the post-2015 agenda. Its spirit is further reflected in two important mentions to data disaggregation, which is integral to reducing the disparity in outcomes between the most marginalized and those who are closer to international poverty lines. Related to the topic of data, target 17.19 pushes governments to move towards new measures of progress that go beyond GDP. These initiatives could open the door for the use of innovative indicators that could better grasp the experience of poverty. The Open Working Group could have gone further in the area of monitoring progress by agreeing that targets should be considered met only if they are met for the lowest quintile of any population, as was proposed by some delegations during the negotiations. Further, the Open Working Group’s document refers to the most vulnerable in nine targets, demonstrating the group’s recognition that the most marginalized were overlooked during the Millennium Development Goals. It is also important to note that language like for all and universal should be interpreted as attempts to ensure that a particular target reaches even the most excluded populations.
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Human Rights and Participation The International Movement ATD Fourth World has historically championed a people-centered view of development and it is pleased with the reference to the centrality of people in the document’s chapeau. The text’s chapeau further refers to rights instruments and internationally agreed human rights. International human rights instruments, like the Guiding Principles on Extreme Poverty and Human Rights, written with the participation of people living in extreme poverty, provide solid guidance for countries seeking inclusive development. Some other critical victories in this area include labor rights (including for workers in precarious employment) and human rights education. That being said, there was a lacking political will to mainstream human rights throughout the document and strengthen public services. Almost all uses of the term ‘access to’ could be effectively replaced with ‘right to’. This language would significantly enhance the power of people to claim their rights, and its absence is perhaps the most significant shortcoming of the Open Working Group’s document. In the participatory research people living in poverty make a direct link between participation, dignity, and more effective poverty eradication programs. Although the conception of the SDGs has been a participatory policy-making process, the text could have gone further on language for participation. There are references to cultivating the participation of local communities in water management, participatory city planning, and participatory decision-making at all levels in goals 6, 11, and 16, respectively. Yet, there is no emphasis on the direct participation of people living in poverty in the design, implementation, monitoring and evaluation of the policies and programs that will implement the SDGs. Instilling ownership of the agenda in people living in poverty will require a strong commitment to building a participatory approach to governance where local communities and marginalized and excluded people can be involved in setting priorities and designing, monitoring and implementing policies.
Equality, Non-discrimination and Inclusion Highly related to “leave no one behind”, is the primacy of achieving equality and inclusion as a way of combating poverty. The International Movement ATD Fourth World was a key defender of Goal 10 on Reducing Inequalities. Within it, the international community took significant political strides to address economic inequality, social inclusion, eliminating discriminatory laws, policies and practices, and fiscal, wage, and social protection. Elsewhere in the report there are important allusions to inclusion through terms like inclusive institutions, birth registration, universal health coverage, empowerment and participation. ATD Fourth World regrets that the free birth registration was included in the final document.
Education Education is one of the most important tools for combating poverty and, in recognition of that fact, people living in poverty have long desired to become active participants in the education of their communities. Through the text, governments establish their desire to ensure inclusive quality education, which goes far beyond increasing access. Further there is a commitment to ensuring access to preprimary education and care for all, which research partners emphasized in international participatory research. ATD Fourth World regrets that the group did not agree to include the right to education, a right that the international community just ratified at the 2014 Global Education for All meeting in Oman. Some shortcomings in the area of education include a failure to address indirect cost to education, which people living in poverty highlight as one of the most significant barriers to quality education. Parents living in poverty also highlighted the need to build cooperative forms of education in partnership with communities recognizing that parents, regardless of their economic or social status, are partners in children’s educational success.
Civil Society Participation The Open Working Group made civil society engagement a real priority in their work. Taking advantage of new technologies, the UN system was able to hold constant consultation and through certain initiatives - 128 -
was able to reach a significant number of people living in poverty. These participatory initiatives should be further developed so that, eventually, the most marginalized will be permanently engaged in policymaking processes at all levels. This possibility is reflected in the emphasis on Civil Society engagement in the Open Working Group’s ‘chapeau’ and under Goal 17 on Means of Implementation.
Conclusion Thanks to this spirit of openness, the International Movement ATD Fourth World was able to share with the Open Working Group many of the findings from its aforementioned participatory research project, synthesised in the report entitled Challenge 2015: Towards Sustainable Development that Leaves No One Behind. The self-identified priorities of people living in extreme poverty, detailed in the report, formed the basis for all of the organization’s policy priorities and proposals. The positive attitude of Member States and the Co-Chairs in engaging with civil society allowed ATD Fourth World to introduce some of these priorities into the work of the Open Working Group. The sustainable development goals are a historic agreement and are much more ambitious and comprehensive than the preceding Millennium Development Goals. The International Movement ATD Fourth World congratulates Ambassadors Macharia Kamau and Csaba Kőrösi in their expert co-chairing of this group and looks forward to the opportunity to further engage in the design and implementation of the post-2015 sustainable development agenda.
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Strengthen democratic and
Respect for nature and the
Promote Equality and Justice
Dignity and human rights for
Global Sustainability Goals
By 2030 we will deliver sustainable energy to all
By 2030 we will have a sustainable, healthy and resilient
Peace and Security based on
environment for all
By 2030 we will build disaster-resilient societies
By 2030 we will have robust global partnerships for more
By 2030 governance will be more open, accountable and
and effective use of financial resources
are protected in conflict and thrive in a
safe family environment
forms of violence,
By 2030 we will ensure all children live a life free from all
education and have good learning outcomes
By 2030 we will ensure all children receive a good-quality
mortality and provide healthcare for all
By 2030 we will end preventable child and maternal
ensure universal access to sustainable food, water and
By 2030 we will eradicate hunger, halve stunting, and
relative poverty through inclusive growth and decent work
By 2030 we will eradicate extreme poverty and reduce
Save the Children
Universal Social Protection
Full Employment and Decent
Poverty and Inequality
Peopleâ&#x20AC;&#x2122;s Goals for SD
List of Proposed Goals for Post-2015 Development Goals by CSOs
Analysis of proposals in the SDGs e-Inventory related to the themes of the Sixth Session of the Open Working Group on SDGs By David Kroeker Maus and Jack Cornforth, Stakeholder Forum
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Introduction The Sustainable Development Goals e-Inventory is an interactive online tool which enables stakeholders to outline their visions for new post-2015 global goals. This may be in the form of fully formed proposals, which include detailed targets and indicators, or simply principles and themes that should be applied to the goals. The e-Inventory also enables stakeholders to search existing proposals. The UN General Assembly’s Open Working Group (OWG) on SDGs was mandated by Member States at Rio+20 to propose a set of sustainable development goals (SDGs) by September 2014. The Sixth Session of the OWG (9-13 December) will consider the thematic areas of: Means of implementation (science and technology, knowledge-sharing and capacity building), and global partnership for achieving sustainable development; Needs of countries in special situations (African countries, LDCs, LLDCs, and SIDS, as well as specific challenges facing the middle-income countries); Human rights, the right to development, and global governance. In order to inform the deliberations of the December OWG meeting, Stakeholder Forum has conducted an analysis of the proposals currently housed within the SDGs e-Inventory which relate to the thematic areas of the Sixth Session. For most of these topics, the SDG e-Inventory already contains a diverse range of proposals, from a wide variety of stakeholders from all global regions. It is hoped that this analysis will be a useful resource for the OWG members, as well other stakeholders involved in discussions on the Post-2015 Development Agenda, whether working specifically on the themes of this OWG meeting or otherwise. Methodology Using the search function of the SDGs e-Inventory, relevant proposals were identified using the thematic labels applied to the proposals when they were uploaded. For example, proposals which were categorised under the thematic areas of ‘Human rights,’ and ‘Governance (global/regional)’ have been analysed in the section of the same name, whilst proposals tagged with thematic areas such as ‘Technology/knowledge transfer’ and ‘Partnerships for development’ were analysed in the ‘Means of Implementation’ section. Frequency of OWG 6 thematic areas in the SDGs e-Inventory Several of the thematic areas being considered at OWG 6 were among the most popular topics within the e-Inventory. Human rights and Governance (global/regional) were both within the top 10 (out of 55) most selected thematic areas. As there are a number of thematic areas are subsumed under ‘Means of Implementation’ (MoI), no single thematic area ranked particularly high: ‘Technology/knowledge transfer’ is 28th; ‘Finance for sustainable development’ is 33rd; ‘Partnerships for development’ is 35th; and ‘Science and research’ is 47th. Capacity building does not feature as a standalone theme within the e-Inventory, as capacity building is deemed to be an enabler for addressing specific thematic areas, rather than being a thematic area in its own right. Nonetheless, a keyword search reveals that the term features across proposals in a broad range of thematic areas, ranging from biodiversity conservation to climate change adaptation to agriculture. This would appear to support the assertion that capacity building 2
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is not viewed as a goal or theme unto itself, but as a tool which enables stakeholders to take action on particular issues. Table 1: Top ten most common themes addressed by proposals in the SDGs e-Inventory Rank Theme
No. of proposals that discuss theme
4 Human rights 6
Governance (global/regional) 63
Employment and labour
Analysis of proposals Means of implementation and global partnership for sustainable development The Technical Support Team (TST) Issues Brief defines MoI as: ‘the interdependent mix of financial resources, technology development and transfer, capacity building, inclusive and equitable globalization and trade, regional integration, as well as the creation of a national enabling environment required to implement the new sustainable development agenda, particularly in developing countries.’ As several of these issues have already been addressed in previous OWG meetings, we have chosen for the purposes of this analysis, to focus on proposals within the e-Inventory that were tagged under the thematic areas ‘Finance for sustainable development,’ ‘Partnerships for development,’ ‘Technology/knowledge transfer,’ and ‘Science and research.’ There are a total of 58 proposals in the e-Inventory tagged with at least one of these four themes (see Figures 1-4 for number of proposals related to each individual thematic area). As with most thematic areas, the largest share came from NGOs, and the most common location of author was ‘International,’ followed by, in order, Africa, Europe and Asia. Of the 58 proposals, 19 included specific goals, targets or indicators (GTIs) related to MoI. 3
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Finance for Sustainable Development Three of the proposals which deal with finance for sustainable development restated a version of the Pearson Target: 0.7% of Gross National Income given as Official Development Assistance (ODA) by rich countries. The proposal entitled “Asia-Pacific Aspirations: Perspectives for a Post-2015 Development Agenda” submitted jointly by ESCAP, ADB and UNDP does not set a numerical target for ODA, but proposes that “Access to traditional ODA should be supplemented by innovative finance.” Tax Justice Africa, on the other hand, Figure 1: Share of proposals related to argues for accountability in the tax system, rather ‘Finance for SD’ within the e-Inventory than traditional aid as a means of financing sustainable development, arguing that malpractice denies developing countries more money in tax revenue than they receive in ODA. Taking a different approach, the proposal from Bangladesh Agricultural University, Mymensingh, calls for a standalone goal on finance for sustainable development which includes specific targets on microfinance for the poor that are excluded from mainstream development efforts. Partnerships for Development The MDGs contained a stand-alone goal (#8) on Global Partnership for Development, but as Mark Weinstein’s (USA) proposal points out, it was too focused on state-to-state partnerships, not on grassroots partnerships that are nevertheless global. There is a need, then to insure that any standalone goal covers a wider array of partnerships for development. Many proposals referring to partnerships for sustainable development within the e-Inventory were lacking in detail on the sort of partnerships they envisaged. The ones that did offer Figure 2: Share of proposals related to specifics, however, proposed a wide range of ‘Partnerships for SD within the e-Inventory partnerships: Save the Children proposed a standalone goal: ‘By 2030 we will have robust global partnerships for more and effective use of financial resources,’ which included targets on, inter alia, transparency and resource mobilisation. ESCAP, ADP and UNDP also propose a stand-alone goal for ‘Strong Development Partnerships,’ with target areas related to different global public goods. The UNCSD Youth Caucus calls for public and private sectors to cooperate in order to make the benefits of new technologies widely available. Technology/Knowledge Transfer As with ‘partnerships’, details were lacking in many of the submissions that proposed GTIs related to technology transfer. Most proposals seemed to imply transfer technology between countries; for example the French Foreign Ministry proposed a target to ‘Encourage transfers and distribution of 4
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clean, environmentally friendly technologies,’ the Centre for Environment and Policy Advocacy (Malawi) called for a goal on technology transfer within countries, ‘including [to] socially excluded groups such as women, children, the elderly and people living with disabilities.’ A proposal by CASTCIC/WFEO- Digital LIN Chao Geo-museum- CODATA_PASTD envisions an open science environment where technology transfer could be accomplished Figure 3: Share of proposals related to through an open information network. Marian ‘Technology/Knowledge transfer’ within the Deblonde (Belgium) on the other hand proposes a e-Inventory goal in which: ‘Initiatives to transfer technology and knowledge become obsolete since appropriate knowledge is co-constructed by relevant stakeholders and, hence, demand for particular technology and knowledge already exists before it is supplied.’ This proposals sets a target of budgeting money for initiatives to involve stakeholders in the development of appropriate technology rather than mere technology transfer. Science and Research For the most part, this thematic tag was selected for proposals that addressed issues being discussed in other OWG meetings, such as chemical pollution, oceans and low carbon development. There were only a few proposals which had GTIs specific to science and research. International Movement ATD Fourth World propose a goal entitled Figure 4: Share of proposals related to ‘Science and ‘Introduce people living in poverty as a new partner research’ within the e-Inventory in building knowledge on development’ which includes targets on creating new forms of shared knowledge and improving qualitative knowledge and measures of development. Marian Deblonde (Belgium) proposes the goal: ‘Applied science and research is performed in the service of the public good,’ with targets on separating Research & Development (R&D) from short-term financial imperatives. Comparison with official Post-2015 Development Agenda process inputs The reports of the Sustainable Development Solutions Network (SDSN) and the High Level Panel (HLP) also both include the Pearson Target on ODA, suggesting that 0.7% of GNI remains for many the gold standard for development assistance. Significantly, they both also include targets on taxation, with the HLP calling for a target to reduce tax evasion (similar to the proposal by Tax Justice Africa), and the SDSN calls for rules on taxation (among other things) to be reformed to support sustainable development. Whilst the language of the SDSN is somewhat vague, several proposals in the e-Inventory were quite explicit about the sort of progressive taxation that could support sustainable development - a number of which providing specific targets. Interestingly, the UN Global Compact does not propose targets on either ODA or taxation. 5
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Although there is some ambiguity around the concept of partnership in stakeholder proposals in the e-Inventory, official process inputs seem similarly opaque on the matter. The UN Global Compact, does not spell out the functions of its proposed partnerships, and the HLP seems to use the term ‘partnership’ to refer to the entire post-2015 process. This suggests that simply invoking the concept of partnership for sustainable development in the SDGs will be insufficient. Further clarification will be needed on who are envisioned as partners, and what role the intended partnerships will play in the sustainable development process. Only the SDSN propose a target on technology transfer, just as only a few stakeholder proposals call for traditional technology transfer. The HLP on the other hand includes a target to ‘Promote collaboration on and access to science, technology, innovation, and development data,’ which is perhaps closer to the targets envisioned by many stakeholders’ proposals in the e-Inventory.
Needs of countries in special situations As stated in the TST Issues Brief on the subject, the MDGs have helped many countries in special situations (African countries, LDCs, LLDCs, and SIDS, as well as some middle-income countries) make notable progress on development in recent years. Yet these countries continue to face a wide range of significant and specific challenges that must be addressed for a new global goals framework to be effective. The nature of this topic and the focus of the e-Inventory mean that it has not been possible to analyse it to the same level of detail as the other issues being discussed at OWG 6. The apparent purpose of OWG 6 is to address the special needs and interests of these countries across a broad range of thematic areas - many of which are being discussed separately at other OWG meetings rather than a discrete theme. Furthermore, the e-Inventory solicits proposals for a global goals framework rather than those on the specific needs of individual or groups of countries. Nevertheless, the e-Inventory contains proposals from 23 Field Hearings Partners (FHPs), who are part of the Initiative for Equality (IfE), a partner project that engages stakeholders from around the globe in a range of countries, including those that are Least Developed, African, and landlocked (such as Nepal, Malawi, Uganda, Rwanda and Chad), providing them with a platform to voice their recommendations on a broad range of sustainable development issues. Proposals from FHPs therefore provide a useful resource for deliberations on the needs of countries in special situations. Although the FHPs have drawn on their own unique experiences, several trends have emerged. Inequality was a priority concern for many of the FHPs, something which is relatively unsurprising given the high Gini coefficients in most LDCs. Aide aux Familles et Victimes des Migrations Clandestines (Cameroon) described socio-economic inequality as one of the biggest obstacles to sustainable development. Rev. Jonas Garba (Chad) noted the facade of prosperity in unequal societies and stated that ‘the gap of inequality must be bridged to have a sustainable community.’ This sentiment was echoed by Proclade Cameroon, who argue that ‘A separate stand-alone goal is needed for equitable development and equality so that attention can be focused on this urgent topic,’ which should be accompanied by clear, and measurable targets. Action on Youth Empowerment (Uganda) proposed perhaps the most ambitious goal: ‘Economic inequalities 6
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between individuals, communities, groups, and nations must be reduced to the minimum level feasible.’ Perhaps owing to the heightened awareness of resource scarcity in LDCs, several FHPs suggested GTIs aimed at reducing waste. The Charles and Doosurgh Abaagu Foundation (Nigeria) proposed targets on reducing food waste. Similarly, the Grassroots Development Organisation (Rwanda) reiterate the High Level Panel’s targets on reducing post-harvest losses and food waste. Bangladesh Agricultural University, Mymensingh, emphasises that for microfinance for sustainable development to be effective, it should avoid activities that waste natural resources. Other notable and perhaps more obvious priority areas emerging from FHP proposals include the elimination of hunger, tackling conflict and instability, strengthening national institutions and the rule of law, empowerment of local communities, gender equality, and building resilience to climate change. Human rights and global governance The TST Issues Brief argues that: ‘Since human rights and sustainable development objectives are closely linked and mutually reinforcing, addressing these human rights gaps [in the MDGs] will be essential for truly sustainable development,’ and thus must be addressed in the SDGs. The importance of human rights to sustainable development is reflected in the massive number of submissions in the e-Inventory that address this theme. Over one-quarter of proposals selected human rights as a thematic area (See Figure 5), and it is identified as a cross-cutting issue for almost every other thematic area. If the amount of attention given to a particular thematic area by stakeholders is indeed an indication of its importance to sustainable development, then global governance is similarly crucial; this thematic area is also addressed in over a quarter of the proposals in the e-Inventory (See Figure 6). The TST Issues Brief notes that ‘International arrangements for collective decision making have not kept pace with the magnitude and depth of global change. The increasing interdependence of the global economy and integrated decision making call for better mechanisms of global governance for tackling sustainable development challenges.’
Figure 5: Share of proposals related to ‘Human Rights’ within the e-Inventory
Figure 6: Share of proposals related to Global/regional governance within the e-Inventory
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Human Rights Of the 61 proposals which selected ‘Human rights’ as a thematic area, 16 proposed specific GTIs. The percentage of these proposals is slightly lower than for other thematic areas. This is primarily because human rights have been viewed as an overarching issue, with it often argued that all sustainable development goals should take a rights-based approach. Thus, many proposals that suggested GTIs related to, for example, water, sexual and reproductive health or governance, situated their proposals within the context of the realisation of human rights. Although for most thematic areas, NGOs account for more proposals in the SDGs e-Inventory than any other stakeholder type, their share of proposals related to Human Rights is exceptionally disproportionate, with NGOs accounting for more proposals than all other stakeholders combined. Although this disparity is striking, it perhaps should not be too surprising, given the significant role played by civil society organisations in human rights campaigns. The geographic distribution of proposals was roughly consistent with other thematic areas, with the largest share of proposals coming from International authors, followed by, in order, Europe, Africa and Asia. It is also notable that many proposals which were labelled with the thematic are of ‘Human rights’ deal with gender equality, suggesting that many stakeholders shared the view of former US Secretary of State Hillary Clinton that ‘Women’s Rights are Human Rights.’ As the Eighth Session of the OWG will be considering gender equality, we will not be analysing these proposals in this paper; nevertheless, it is worth noting that many stakeholders do not separate these two issues. There were a significant number of process-related GTIs relating to human rights – although within some conceptualisations of the issue, a change in laws or treaties could potentially be considered a human rights ‘outcome.’ For example, the Civil Society Reflection Group on Global Development Perspectives proposes targets for anti-discrimination laws. International Movement ATD Fourth World calls for ‘Align[ing] development targets and their implementation with human rights norms and standards.’ Proposals addressed a broad spectrum of human rights, but there were several commonalities. A number of proposals offered GTIs related to access to justice systems. The African Youth Conference on Post-2015 Development Agenda proposed a target of ‘equal and unrestricted access to an effective justice system both in urban and rural areas that is not respective of status and financial background.’ The CONCORD European Task Force proposed a similar goal using slightly different language: ‘Universal access to an independent justice system and no impunity.’ Freedom of information featured in proposed GTIs from Save the Children, the Civil Society Reflection Group, and the Beyond 2015/GCAP/IFP national deliberations. The Arab NGO Network for Development proposed a goal entitled ‘An End of Occupation’ arguing that ‘The Post-2015 development agenda should include a clear goal with regards to the right to self-determination.’ Global Governance Of the 57 proposals which selected ‘Governance (global/regional)’ as a thematic area, 25 included specific GTIs related to this theme. Once again, NGOs accounted for the largest share, but 10 different stakeholder types were represented, higher than for any of the other thematic areas in this 8
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analysis. Surprisingly, then, there was less geographic diversity among the authors of these proposals, with Africa accounting for a smaller share of proposals than in other thematic areas, and North America accounting for none. Three different kinds of proposals related to global governance can be distinguished within the eInventory: 1) Proposals that attempt to improve ‘global governance’ through an aggregate improvement in national governance. For example, Save the Children propose the target, ‘Ensure all countries have transparent governance, with open budgeting, freedom of information and holistic corporate reporting.’ 2) Proposals that distinguish between different levels of governance and propose GTIs to improve both national and intergovernmental governance or governance ‘at all levels’. For example, International Movement ATD Fourth World propose, ‘Ensure that national and international structures encourage participatory governance.’ 3) Proposals that suggest new mechanisms of global governance. For example Geetha Iakmini, an Initiative for Equality Field Hearing Partner from Sri Lanka proposes inter alia, ‘Targets on reducing the dumping of waste, oil, and other water pollutants, with clear international institutional mechanisms for this.’ The majority of proposals discussed in this section identified global governance as a cross-cutting issue. There were, however, proposals which called for stand-alone goals on global governance. The most common sub-theme within global governance was corruption, with eight proposals for GTIs on corruption, usually in connection with GTIs related to transparency or accountability, but also in connection with strengthening institutions and the rule of law. David Lee (Australia) proposes creating a ‘new global blacklist of companies known to be engaging in corruption.’ Other proposals that do not propose specific GTIs also highlighted the need to combat corruption in order to achieve sustainable development. The Campaign for Peoples’ Goals for Sustainable Development (CPGSD) proposed a stand-alone goal entitled ‘Democracy and Good Governance’ which, in addition to targets similar to those proposed by Transparency International, includes a target on compliance of business and industry with international human rights norms and mandatory reporting requirements, and another target on access to remedies for victims of human rights violations, displaying that stakeholders also see a close link between these two OWG themes. The International Poverty Reduction Centre in China proposes a goal entitled ‘Improve global governance for international development,’ which includes targets on the accessibility of global public goods. There were only slight differences in the language used for other stand-alone goals on this theme, with some proposals entitled ‘Good Governance,’ and others ‘Just Governance.’ The more significant variations were among the targets and indicators, which are discussed below. As noted above, there were also proposals for new mechanisms of global governance for issues that are sometimes beyond the scope of individual national governments. For example, the Participate Ground Level Panel in India proposed a goal to ‘Enforce mechanisms to prevent tax evasion by 9
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corporates: This tax should be rightfully paid to Governments who can in turn use this for the development of the poor.’ The International Trade Union Confederation (ITUC) proposed a goal entitled ‘Universal social protection’ which proposed ‘Implementation of a universal social protection floor based on ILO Recommendation No.202’ and the ‘Creation of a global fund to help the poorest countries implement a social protection floor.’ Comparison with official Post-2015 Development Agenda process inputs Human rights Just as many of the proposals within the e-Inventory addressed human rights and gender equality jointly, the SDSN report proposed a goal entitled ‘Achieve Gender Equality, Social Inclusion, and Human Rights for All.’ The HLP report does not propose a stand-alone goal on human rights, but similar to many eInventory proposals suggests that the post-2015 framework should be rights-based. The UN Global Compact, in contrast to both the HLP and the majority of proposals within the e-Inventory, puts the realisation of human rights together with good governance in a stand-alone goal. Global governance There was significant overlap between proposals in the e-Inventory and the goals proposed in official Post-2015 Development Agenda inputs on the issue of global governance. Of the five targets in the HLP Report’s proposed goal entitled ‘Ensure Good Governance and Effective Institutions,’ only one – ‘Provide free and universal legal identity, such as birth registrations’ was not taken up in any of the e-Inventory proposals. Variants of the other four targets – related to fundamental freedoms (speech, press, association, etc.); public participation in governance; and freedom of information – were all included, often in multiple proposals. Indeed, Development Initiatives (UK) calls for ‘Access to information as a goal in its own right.’ The targets listed under the SDSN report’s goal to ‘Transform Governance for Sustainable Development’ are echoed by many proposals related to global governance in the e-Inventory. This includes numeric targets for monitoring and evaluation systems for both governments and businesses, and finance for sustainable development. Interestingly, however, most of these were not categorised under the ‘Governance (global/regional)’ thematic area. Similarly, the CPGSD proposes a goal entitled, ‘New Trade, Monetary and Financial Architecture,’ which contains several targets similar to SDSN’s. Whilst the CPGSD proposal is categorised under ‘global governance,’ many similar proposals in the e-Inventory are not. It seems that, even where there is agreement on which issues need to be addressed in the SDGs, there are different understandings of which can or should be considered matters of global governance.
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More information Stakeholder Forum will be publishing briefing papers with an analysis of proposals in the SDGs eInventory related to the themes of each of the remaining two Open Working Group meetings (OWG 7, Jan 2014 and OWG 8, Feb 2014). Stakeholder Forum will also be undertaking a comprehensive analysis of all proposals housed within the e-Inventory to coincide with the second Intersessional Meeting between Major Groups and other stakeholders and the Open Working Group which is set to take place towards the end of the OWGâ&#x20AC;&#x2122;s input phase of work in February 2014. For further information, to search existing proposals, or to submit your vision for new global goals visit: www.sdgseinventory.org or contact Jack Cornforth â&#x20AC;&#x201C; firstname.lastname@example.org.
The SDGs e-Inventory is administered by:
The SDGs e-Inventory is supported by:
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