Financing the Sustainable Development Goals the Contributions of the Multilateral Development Banks

FINANCING THE SUSTAINABLE DEVELOPMENT GOALS THE CONTRIBUTIONS OF THE MULTILATERAL DEVELOPMENT BANKS ASIAN DEVELOPMENT BANK The organizations partnering on this report are the African Development Bank, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, CONTENTS Inter-American Development Bank Group, International Finance Corporation, Islamic Development Bank, New Development Bank, World Bank Group, and the International Monetary Fund as members of the meetings of the Heads of Multilateral Development Banks (MDBs). The use of the term "MDBs" in this report refers to these 11 banks, and the International Monetary Fund's role is specified FOREWORD v as appropriate. Production of this report was coordinated by the Islamic Development Bank as chair of the 2020 meetings of the Heads of MDBs, and INTRODUCTION 1 the Asian Development Bank as chair of the MDB Working Group on Managing for Development Results. The designated “Sherpas” of the Heads and their teams guided the process, and focal points from each institution provided the featured technical content. SECTION 1 FINANCING FOR ACHIEVING THE SUSTAINABLE DEVELOPMENT GOALS 6 The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the official views and policies of the participating institutions, their Boards of Executive Directors, or the governments they represent. The accuracy of the data included PEOPLE 7 in this report is not guaranteed, and no responsibility for any consequence of their use is accepted. By making any designation of or PLANET 12 reference to a particular territory or geographic area, or by using the term “country” in this document, no judgements are intended as to the legal or other status of any territory or area. All figures are in United States Dollars unless otherwise specified. PROSPERITY 16 SUSTAINABLE INFRASTRUCTURE 20 SECTION 2 PARTNERSHIPS FOR THE GOALS—MOBILIZING FINANCING AND KNOWLEDGE 25 SECTION 3 THE PATH AHEAD 32 ii iii Abbreviations Foreword 4Ps – Pantawid Pamilyang Pilipino Program The year 2020 marks 75 years of multilateralism since the United Nations (UN) came into existence and 5 years since the adoption of the 2030 Agenda for AfDB – African Development Bank Sustainable Development and its 17 Sustainable Development Goals (SDGs). The SDGs present a new vision of development for all countries linking people, planet, and prosperity. The financing needed to realize this vision has grown from billions to trillions. AIIB – Asian Infrastructure Investment Bank ADB – Asian Development Bank With only 10 years to go before 2030, we have entered a Decade of Action to achieve the SDGs. In this context, the multilateral development banks (MDBs) and the International Monetary Fund have come together to highlight our efforts to support countries in achieving the SDGs, by providing finance, technical assistance, BRAVE – Business Resilience Assistance for Value-adding Enterprises policy support, and knowledge. CEB – Council of Europe Development Bank This year, in the context of the unprecedented coronavirus disease (COVID-19) pandemic, the MDBs acted swiftly to reorient their financing to help address critical CO – carbon dioxide 2 needs, developing a global response package of $230 billion. The package will help address threats to peoples’ lives through short-term emergency health sector EBRD – European Bank for Reconstruction and Development financing, accelerated infrastructure investment financing, and other instruments including trade finance and guarantees. It will also support MSMEs that have EIB – European Investment Bank been hard-hit by the pandemic. GWh – gigawatt-hour The pandemic has highlighted the fragility of the progress countries have made toward the SDGs and underlined the imperative of fostering better and more IBRD – International Bank for Reconstruction and Development resilient development through a stronger focus on achieving the SDGs. Together, the Heads of MDBs have reflected on opportunities to strengthen their support for this vital agenda at this critical time. We recognize the urgency to achieve the 2030 Agenda through the work that needs to go into building a more resilient IDA – International Development Association post-COVID-19 world. IDB Group – Inter-American Development Bank Group This report features our efforts related to each of the 17 SDGs, reflecting our respective mandates and comparative advantages. Unlike commercial banks, the IFC – International Finance Corporation MDBs seek to maximize development impact rather than profits. We all agree that the investment required to achieve the SDGs vastly exceeds what the public IMF – International Monetary Fund sector can be expected to deliver. Steering private sector and other resources toward the SDGs is therefore crucial. Embodying the spirit of "SDG 17: Partnerships IpT – Internet para Todos for the Goals", the MDBs have developed close collaborations with each other and with other development partners, the UN, governments, private sector actors, and civil society to support this agenda as we work to reduce the effects of the COVID-19 pandemic. IsDB – Islamic Development Bank LUSIP – Lower Usuthu Smallholder Irrigation Project We are committed to working with partner countries to emerge from the pandemic refocused on the SDGs, reflecting the principles of effective development cooperation. MDB – multilateral development bank To achieve these goals, we will deepen our focus on inclusion, and scale up our investments in people and human capital. We will strengthen our focus on MSMEs – micro, small, and medium-sized enterprises resilience, including through economic and financial measures, to preserve our shared prosperity. We will continue to promote quality infrastructure that MW – megawatt supports the SDGs, encourage digitalization, and foster innovation. We recognize the imperative to encourage green approaches to development and ambitious NDB – New Development Bank climate action, as envisioned in the Paris Agreement on Climate Change, and will enhance our efforts to protect the planet through our programming. We are also NDCs – Nationally Determined Contributions committed to continuing to work together to advance common approaches to results measurement in support of the SDGs. SDG – Sustainable Development Goal I hope this report highlights our diverse ongoing efforts geared to supporting the SDGs. I am convinced that the MDBs have a key role to play through SMEs – small and medium-sized enterprises deeper collaboration during this Decade of Action to foster an inclusive, sustainable, green, and resilient future for the people we serve. UN – United Nations US$ – United States Dollars UNICEF – United Nations Children’s Fund Bandar Hajjar WBG – World Bank Group President, Islamic Development Bank WiB – Women in Business 2020 Chair of the Meetings of the Heads of Multilateral Development Banks iv v INTRODUCTION This joint report, issued under the guidance of the Heads of 11 MDBs and In 2015, the international community adopted the the IMF, presents collective and individual efforts to support countries in The SDGs are the cornerstone of MDB support for 2030 Agenda for Sustainable Development and the 17 The unprecedented crisis of the COVID-19 pandemic achieving the SDGs (Box 1). Section 1 provides illustrative examples of sustainable and broad-based economic and social Sustainable Development Goals (SDGs) that underpin it, has once again called for the global development MDBs’ individual and collective financing to support countries’ delivery of the development. This joint MDB report reflects our common endeavor: setting out an ambitious and universal 15-year agenda to community to act together in response to common challenges. SDGs. Section 2 focuses on partnerships to mobilize financing and generate diverse organizations, each with a unique mandate improve people’s well-being, increase prosperity, protect We as MDBs must further strengthen collaboration and knowledge in support of the SDGs. Given the role and mandate of the IMF to and focus, joining forces and working towards the the planet, and promote peace and good governance.1 partnerships, not only among ourselves, but also with other address macroeconomic and finance sector issues that affect global stability, same goals. Five years later, despite important achievements, the scale development partners from both public and private its efforts are covered separately inBox 4. Section 3 looks ahead, reflecting on and speed of progress has been inadequate. The Secretary- spheres. Together, we can help bring the world Rolf Wenzel opportunities for the MDBs to strengthen their contribution to the Decade of General of the United Nations (UN) declared 2020 the start closer to the SDGs by 2030. Governor, Council of Europe Development Bank Action, including through their efforts to help countries align their COVID-19 of a new “decade of action” aimed at infusing urgency and Marcos Troyjo recovery efforts with the SDGs. purpose into efforts to achieve the SDGs by 2030. The coronavirus President, New Development Bank disease (COVID-19) pandemic and ensuing economic crisis now threaten to stall and even erode prospects for accelerating progress toward the SDGs. Hard-won human development gains may be set back. The multilateral development banks (MDBs) and the International Monetary Fund (IMF) are committed partners in countries’ efforts to achieve the

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