UN Capital Development Fund

LoTUS

Cross-Border Development Concept Programme

November 2015

UNCDF at a Glance

Inclusive

Finance

• Finance that expands

opportunities and reduces

vulnerabilities.

• Develops access to financial

services

• Provides risk capital directly to

the private sector to underserved

markets

• Supports a wide range of

providers (e.g. FSPs, banks,

cooperatives, money transfer

companies, and mobile networks

operators)

Local

Development

Finance

• Promotes increased capital flows to

the local level

• Reduces inequalities by improving

services

• Increasing opportunities for sustainable

economic growth

• New Innovations and testing of

public and private financial systems

• Assist to mobilize domestic

resources for local development and

growth

Local Development Finance Practice

Our Work

Opportunities for Local Development - GMS

Maywaddy

Mai Sot

Payathonzu

Three Pagodas

Tachileik

Mae Sai

Muse

Ruili

Tamu

Moreh

LoTUS – A New Paradigm

Expand Local

Fiscal Space

• Enabling environment and local

legislation

• Develop supply side (finance sector)

• Facilitate regional FDI

• Identify and support investment pipe

lines

Increase Local

Fixed Capital

Formation

• Effective local planning

• Identify productive asset focused

projects

• Develop demand side (project

developers)

• Covert bankable ideas to living projects

Local Transformation Underpinning Sustainability

LoTUS – Working to Fix Both Sides

Demand Side

• Enabling Environment

• Financial Services – Freeing Up

Domestic Capital

Supply Side

• Capacity Development

• Bankable Projects

• Productive Assets

UNCDF LoTUS – Myanmar / Regional Focus

Maywaddy / Mae Sot

East West GMS Corridor

High potentials for manufacturing

Cross border factor endowment

A (trade)

I (focus)

S (service links)

Tachileik / Mae Sai

North South GMS Corridor

High potentials for trade

Cross border logistics

A (trade)

I (low potential)

S (logistics)

Payathonzu / Sangkhla Buri

Southern GMS Corridor

Potential for trade

Dawei SEZ - Thai linkage

A (trade)

I (low potential)

S (logistics)

UNCDF LFI Approach – Risk Mitigation

Demand Side Support

(Project Developers)

Supply Side Support

(Banks & FIs)

Local Development Impact

Local development impact is created through effective

public private partnerships that develops local

productive assets