Measuring Development Finance:A Situation Report

Presentation by Jon Lomøy Introduction to the 1st Session of the Expert Reference Group

OECD / 3-4 October 2013

Post-2015 discussion is taking shape

Eradicate absolute poverty by 2030 Bring the poverty and sustainability agendas

together Climate change and peace and security part of

the development agenda UN post-2015 HLP report: ‘A single agenda

should have a coherent overall financing structure’

Today’s external developmentfinance landscape

Financing development: new challenges

ODA - An increasingly smaller share of resource receipts by developing countries (20% today vs. 50% in 1960s) despite having increased by 63 % over the last decade

Many more actors - SSC, emerging providers, foundations, private sector

Private flows much larger, more dynamic

Need for a comprehensive measurement system for external development finance post-2015 – current system too ODA centric

New measure of development finance

OECD-DAC Ministers (Dec 2012): Define a new measure of total official support for

development beyond ODA Represent both donor effort and recipient benefit Look at whether ODA concept needs to be modernised Map out different sources, types and flows, including

relationship & conditions for maximising impact Establish by 2015 a clear, quantitative definition of

concessional in character in line with prevailing financial market conditions.

External development finance: emerging concepts - provider’s perspective

External development finance: emerging concepts - country’s perspective

What DAC statistics include

What DAC statistics do not include Some flowsTrade flows; remittances; official payments to individuals; flows originating in developing countries; military aid and security expenditures

StocksStocks of foreign direct and portfolio investments and external debt

Contingent liabilitiesEx. guarantees; insurance schemes; catastrophe bonds

Other financial instrumentsInternational taxes, fees and charges, international liquidities, blended value instruments and tax breaks for contributions to NGOs

Other considerations

Non-DAC official providers Regional and sub-regional DFIs Foundations (only the Gates Foundation

reports to CRS) Corporate philanthropy Hybrid organisations - social venture capital

initiatives NGOs

Issues for discussion Are all the major elements of development finance

(actors, flows, modalities and instruments) adequately measured and covered? Where are the gaps?

What might be the best avenues for improving data availability?

How can the DAC statistical system be built upon to accommodate the ever-increasing number of development actors, instruments and modalities?