UN Capital Development Fund

LoTUS Cross-Border Development Concept Programme

November 2015 UNCDF at a Glance

Inclusive Local Finance Development Finance

• Finance that expands • Promotes increased capital flows to opportunities and reduces the local level vulnerabilities. • Reduces inequalities by improving • Develops access to financial services services • Increasing opportunities for sustainable • Provides risk capital directly to economic growth the private sector to underserved • New Innovations and testing of markets public and private financial systems • Supports a wide range of • Assist to mobilize domestic providers (e.g. FSPs, banks, resources for local development and cooperatives, money transfer growth companies, and mobile networks operators) Local Development Finance Practice

Our Work Opportunities for Local Development - GMS

Tamu Muse Moreh Ruili

Tachileik

Mae Sai

Maywaddy

Mai Sot

Payathonzu

Three Pagodas LoTUS – A New Paradigm

Expand Local • Enabling environment and local Fiscal Space legislation • Develop supply side (finance sector) • Facilitate regional FDI • Identify and support investment pipe Increase Local • Effectivelines local planning Fixed Capital • Identify productive asset focused Formation projects • Develop demand side (project developers) • Covert bankable ideas to living projects Lo cal 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 A (trade) High potentials for manufacturing I (focus) Cross border factor endowment S (service links)

Tachileik / Mae Sai North South GMS Corridor A (trade) High potentials for trade I (low potential) Cross border logistics S (logistics)

Payathonzu / Sangkhla Buri Southern GMS Corridor A (trade) Potential for trade I (low potential) Dawei SEZ - Thai linkage 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