Initiative on Financing for Development in the Era of COVID-19 and Beyond
High-Level Meeting of Finance Ministers September 8th, 2020
Presentation by: UN Special Envoy Mr. Mahmoud Mohieldin
1 The Effect of the Pandemic on Finance and the Real Economy
Cumulative confirmed COVID-19 deaths per Global Growth expected to drop by Global remittance flows expected to World merchandise trade expected to drop million people 4.9% drop by 20% and FDI by 40% 13-32%
Source: Our World in Data, September 7th, 2020 Source: World Bank, June 2020 Source: World Bank, Global Economic Prospects, 2020 Source: WTO/UNCTAD, June 2020
Acute hunger set to double Projected Global Working Hour Losses 70 to 100 million people expected to be Global debt topped $258 Trillion (331% of GDP) in 2020, equivalent to 400 million jobs pushed back into extreme poverty in Q1 2020 lost
Source: FT, April 20, 2020 Source: ILO Monitor, 5th Edition, June 2020 Source: World Bank, June 2020 Source: Institute of International Finance, July 2020
High-Level Meeting of Finance Ministers 2 Varying Responses to the Pandemic
88% of global fiscal support has come from High-income Fiscal Measures in Response to the COVID-19 Pandemic (Percent of countries GDP)
Source: ILO Monitor, 5th Edition, June 2020 Source: IMF, June 2020
3 High-Level Meeting of Finance Ministers 3 Progress to Date on COVID-19 Response
Discussion Group Meetings Policy Brief on Global 24 June-27 Aug Solidarity & Responding to the Socio-economic Launch of the Meeting of Ministers Impacts of COVID-19 Policy Brief on Debt High-Level Event Discussion Groups Roundtable of Experts of Finance
March April May 28 Jun 3 19 Aug Sep 8
April May June July Aug Sep
2020
4 High-Level Meeting of Finance Ministers 4 Structure of DRAFTDiscussion – comments welcome Groups
Prime Minister of Secretary-General of the Prime Minister of Canada United Nations Jamaica
Minister of Finance/ Deputy Secretary-General of Minister of Finance/ Foreign Affairs & Foreign Foreign Affairs of the United Nations Canada Trade of Jamaica
Permanent Representative of UN Special Envoy on Permanent Representative of Canada to the Financing the 2030 Agenda for Jamaica to the United Nations Sustainable Development United Nations
Coordination Hub 9 IFAD ILO IOM UNCDF UNDRR
RECs SG-CAT UNCTAD UNDP UN-DESA
UNEP UNESCO UNIDO UNODC UN Women
Logistics and Coordination Team
Institutional Discussion Group 1 Discussion Group 2 Discussion Group 3 Discussion Group 4 Discussion Group 5 Discussion Group 6 Partners Thought Co-Leads: Co-Leads: Co-Leads: Co-Leads: Co-Leads: Co-Leads: Leaders, Bangladesh, Egypt, EU, Fiji, Rwanda, Costa Rica, Ghana, AU, Netherlands, Antigua & Barbuda, Barbados, • Civil Academia, Japan, Spain United Kingdom Maldives Pakistan Senegal Nigeria Society Research Centers Member States Member States Member States Member States Member States Member States • Business Sector APFWLD, DESA, Eaux Arabia CSR Network, DESA, Emirates APMDD, Brookings, DESA, EMTA, ICC, IIF, Coalition for Dialogue Minérales d’Oulmes, Bread for the World, Environmental Group, CGD, DESA, Eurodad, IMF, Jubilee Network on Africa, DESA, FACTI Education DESA, Eaux Minérales FSB, GCF, G20, G24, ICC, IMF, PIIE, RECs, USA, LATINDADD, PIIE, Panel, FATF, MDBs, Commission, FATF, d’Oulmes, GCF, ICC, ICC, IMF, Madhyam, SID, South Centre, RECs, South Centre, OECD, Oxfam, RECs, GCF, IFAD, ICC, ILO, ICMA, IDFC, ITUC, PIIE, RECs, SID, SOMO, UNCTAD, WBG SID, UNCTAD, WBG SID, Standard IOM, MDBs, OECD, MDBs OECD, Oxfam, UNCTAD, UNODC, Chartered, Tax Justice Reality of Aid Africa, RECs, SG-CAT, SID, WBG Network Africa, RECs, SID, UNCDF, Standard Chartered, UNCTAD, UNDP,
UNCTAD, UNDP, UNCDF, UNDP, UNODC UNESCO, UNIDO, UNDRR, UNEP, UNODC, UN Women UNESCO, UNODC, UN- PRI, WRI, WWG on Ffd
5 High-Level Meeting of Finance Ministers 5 Outcome of Policy Options
Executive Summary
PowerPoint Presentations
Executive Summaries of Each Discussion Group
Complete Menu of Options
6 High-Level Meeting of Finance Ministers 6 Cross-Cutting Policy Options
External Finance, Remittances, Jobs, Inclusive Growth
Recovering Better for Emergency Sustainability
Global Liquidity and Financial Stability Policy Issues Recovery
Debt Vulnerability
Sustainability
Private Creditor Engagement
Illicit Financial Flows
High-Level Meeting of Finance Ministers 7 Emergency Mobilization Responses Examples of Policy Options Jobs, Inclusive Growth, and Debt, Liquidity, Creditors Engagement, Sustainability and Illicit Financial Flows
Mobilize funds for “Access to COVID- 19” Tools Accelerator for Vaccine SDRs and Extension of Swap Lines
Declare Remittance Services Extend DSSI until 2021 & Essential and utilize diaspora Broaden Scope with investments emphasis on vulnerability
Capitalize on DAC to protect and Voluntary Credit Facility and meet current ODA levels Global Facility Purchase Program
Global coordination and cooperation mechanism for Liquidity and Stability Facility (LSF) trade & investment
Fund Against COVID-19 Rapid transparency response Economics (FACE) mechanism to combat illicit flows
8 High-Level Meeting of Finance Ministers 8 Sustainable and Inclusive Recovery Examples of Policy Options
Jobs, Inclusive Growth, and Debt, Liquidity, Creditors Engagement, Sustainability and Illicit Financial Flows Resilient and Inclusive Debt cancellations and Health Systems write-downs of bilateral and underpinned by Universal multilateral debt Health Coverage
Sustainability-related disclosure with ESG Buy-backs of commercial debt requirements
Scale up social protection, Debt-for-SDG or Debt-for- including Universal Basic Climate Swaps Income
Public finance to support Support correspondent jobs, especially in SMEs banking relationships and the informal economy
9 High-Level Meeting of Finance Ministers 9 Enabling a Sustainable and Resilient Future Examples of Policy Options Jobs, Inclusive Growth, and Debt, Liquidity, Creditors Engagement, Sustainability and Illicit Financial Flows
Factoring in global public State-contingent debt instruments goods and bads and phasing for official and commercial debt out fossil fuel subsidies
Global standards and norms: Capital account management and integrate SDGs into national macro prudential measures to budgets, update NDC and support developing economies DRR strategies
Create and expand sustainable Legal support mechanisms finance instruments, e.g. regarding sovereign debt contracts green and SDG bonds and provisions
Provide advice on digitalized tax Adopt climate-related administration, tax multinational financial risk disclosures corporations in a fairer way, and enhance transparency
10 High-Level Meeting of Finance Ministers 10 The Way Forward
Meeting of Meeting of Heads of Thematic and Regional Follow-up Meeting to Benchmark Progress Ministers of State and Government Meetings in the Context of 2030 Delivery Finance (Decade of Action) Sep 8 Sep 29 Oct-Dec Dec
Sep Oct Nov Dec Jan
2021 2020
• COP 26 1-12 November 2021 SDG High-Level Week Annual Meetings of the Finance in G20 Moment of the 75th UNGA IMF and World Bank Common Summit Summit • Beijing +25 March 15-26, 2021 Group • OECD Ministerial Meeting Date TBD Sep 18 Sep 22-30 Oct 12-16 Nov 10-12 Nov 21-22
11 High-Level Meeting of Finance Ministers 11 Thank You
website: www.un.org/en/coronavirus/financing-development
12 High-Level Meeting of Finance Ministers 12