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Financing for Development: Progress and Prospects 2018

Cover 2018 report of the Inter-agency Task Force on Financing for DevelopmentFull report:

Overview only (pdf)

Full text (pdf)

Note by the Secretary-General:

Note by the Secretary-General on “Financing for Development: Progress and prospects” (E/FFDF/2018/2) English | Français | Español | العربية | 中文 | Русский

Press release (13 April 2018) and fact sheet:

Short-termism impedes progress of hundreds of millions of people (doc) (pdf)

Data update following release of 2017 ODA data (20 April 2018):

ODA falls slightly in real terms in 2017, with more promising outlook for LDCs (pdf)

 

The 2018 report of the Inter-agency Task Force on Financing for Development finds that most types of development financing flows increased in 2017, and that there has been progress across all the action areas of the Addis Ababa Action Agenda. This progress was underpinned by an upturn in the world economy, but at the same time the report warns that risks could derail development progress and structural impediments continue to undermine sustainable development prospects.

The 2018 report provides policy options which, if implemented, would put the world on a sustained and sustainable growth and development path. It also examines the financing challenges to the SDGs under in-depth review in 2018 to help assess progress in the means of implementation for goals on water and sanitation, affordable and clean energy, sustainable cities and communities, sustainable production and consumption, and terrestrial ecosystems.

The 2018 report is the second substantive assessment of progress in implementing the Financing for Development outcomes and the means of implementation of the Sustainable Development Goals since the adoption of the 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda. The assessment draws on the expertise, analysis and data from almost 60 agencies and international institutions that make up the Task Force, which is led by UN DESA and includes the World Bank Group, the International Monetary Fund and the World Trade Organisation, as well as UN agencies such as UNCTAD and UNDP.

Chapters:

 

Financing for Development: Progress and Prospects 2017

Cover 2017 report of the Inter-agency Task Force on Financing for DevelopmentFull report:

Executive summary (pdf)

Full text (pdf)

Note by the Secretary-General:

Note by the Secretary-General on “Financing for Development: Progress and prospects” (E/FFDF/2017/2)

Press release (22 May 2017):

PDF iconContinued slow global growth rates risk leaving 6.5 per cent of population in extreme poverty in 2030

Executive summary

 

In 2016, the first full year of implementation of the Addis Ababa Action Agenda, efforts have begun at all levels to mobilize resources and align financing flows and policies with economic, social and environmental priorities. Progress can be reported in all seven action areas of the Addis Agenda. Nonetheless, a difficult global environment has impeded individual and collective efforts, and many implementation gaps remain. The Addis Agenda offers a broad framework for individual actions and international cooperation to increase sustainable development investment, stimulate global growth and advance the world towards achieving the Sustainable Development Goals (SDGs). Its rapid implementation is therefore more important than ever.

The challenging global environment in 2016 had significant impacts on national efforts to implement the Addis Agenda. This includes not only economic factors, such aschallenging macroeconomic conditions, low commodity prices, slow trade growth, and volatile capital flows, but also humanitarian crises. Despite improvements projected for 2017 and 2018, the current growth trajectory will not deliver the goal of eradicating extreme poverty by 2030. Least developed countries (LDCs) will fall short by large margins.

National actions and international cooperation can help change the trajectory of the global economy and support countries towards achieving the SDGs. The seven action areas of the Addis Agenda address the different sources of finance: domestic public resources; domestic and international private business and finance; international development cooperation (including official development assistance, South-South cooperation and development bank lending); international trade; debt sustainability; systemic issues; and science, technology, innovation and capacity building. 1 Each section of the report highlights key issues and puts forth policy options for consideration by Member States. These recommendations emanate from the assessment of progress and implementation gaps presented in the report and its online annex. Chapters also share lessons learned from the experience of taking action at the national and regional levels. Across the chapters, the Task Force has identified two elements in particular that respond to the challenges posed by the current environment—the need to increase long-term investments in sustainable development and the importance of addressing economic vulnerabilities.

Increases in long-term and high-quality investments will lead to a sustainable rise in economic growth. Additional public and private investment and financing will be required to meet the large investment needs associated with the SDGs, particularly in infrastructure and especially in the LDCs. Such investment will also help stimulate global economic growth, creating a virtuous cycle. To achieve this, the report proposes measures that will address impediments to private investment and enhance public investments and the role of development banks. It raises the question of how to use such resources—including blended finance—most effectively, and identifies a number of principles for the use of blended instruments and public-private partnerships.

Increased long-term investments need to be complemented by measures to directly ameliorate the living conditions of the poor and vulnerable, such as social protection floors. Economic growth will not suffice to eradicate extreme poverty. The Addis Agenda responds to this challenge with a social compact, which includes a commitment to social protection floors for all, with a focus on the vulnerable, persons with disabilities, indigenous persons, children, youth and older persons. To address financing challenges associated with social protection floors, it proposes domestic measures and international support that respond to the countercyclical nature of financing needs. The Task Force also underlines that policies and actions on investment and vulnerabilities need not be just gender-sensitive, but should actively advance the goal of gender equality and women’s empowerment.

Countries are taking actions on policy commitments across the Addis Agenda, and have started to bring them together into coherent implementation frameworks. Analysis by the Task Force shows that developing these financing frameworks is a central challenge for countries as they embark on implementing both the Addis Agenda and the 2030 Agenda for Sustainable Development. There are calls in all action areas for strategies and plans to guide implementation efforts, including medium-term revenue strategies, infrastructure plans, development cooperation strategies, and others. These strategies have to be coherent with the broader overall sustainable development strategy. The integrated national financing frameworks called for in the Addis Agenda, which take into consideration all financing sources and policies, can provide this coherence. Task Force members will continue analytical work in this area, with a view to sharing lessons and supporting Member States in building and strengthening these frameworks.

A steadfast commitment by the international community to multilateral cooperation for sustainable development should support national efforts. International cooperation is as vital as ever. Many of the challenges that countries face, including slow economic growth, climate change and humanitarian crises, have cross-border or even global repercussions, and cannot be addressed by any one actor alone. Rooted in the financing for development process, the Addis Agenda recognizes the complementary nature of national actions and a supportive international architecture for sustainable development.

Inaugural 2016 Report
The first edition of the report of the Inter-agency Task Force on Financing for Development maps out the commitments and action items contained in the Addis Ababa Action Agenda and lays out how the Task Force will monitor their implementation in future years.
 
The Task Force has carefully gone through the full range of these commitments and action items to create a framework for monitoring. It compiled them into nine chapters — on cross-cutting issues, the seven action areas of the Addis Agenda, and on data. In each chapter, commitments and actions are organized by thematic clusters, for which the Task Force presents options for monitoring.
 

2016 IATF Report

 
Mapping of select Addis commitments and actions in support of the SDGs
 
 
 
The report includes 3 appendices on the relationship between the Addis Agenda and the Sustainable Development Goals (SDGs) and on voluntary initiatives announced in Addis Ababa.
 
 
 
Mapping of select Addis
commitments and actions
in support of the SDGs

 

MDGs Gap Report

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Introduction
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8