SPECIAL EDITION SDGs DIGEST A Quartely Newsletter, the voice of the IsDB Community of Practice (CoP) on SDGs.

SHAWWAL 1440H - JULY 2019 ISSUE NO.8 ISLAMIC DEVELOPMENT BANK AND UNITED NATIONS TO STRENGTHEN PARTNERSHIP IN FINANCING SDGs

Editorial Rami Ahmad, Special Envoy on SDGs

elcome to this special edition of the SDGs Digest, Wcoming on the heels of the IsDB Annual Meeting in ALIGNING G20 INFRASTRUCTURE Marrakesh and in anticipation of the High Level Political Forum (HLPF) this month and the special Summit on LEADERSHIP WITH THE SDGs the SDGs during the upcoming UN General Assembly later in September. The theme of our Annual Meeting in Marrakesh was CAN THE MUSLIM WORLD ACHIEVE “Transformation in a Fast changing world: The road to the SDG 4 WITH 40% ILLITERACY RATE? SDGs.” Many relevant topics were addressed, including Voluntary National Reviews (VNR), Youth Employability, Aligning GVCs with SDGs, Achieving Zero-hunger, Climate Investing and many more. It was encouraging to see the SDGs seeping through all the activities and no doubt THE POTENTIAL OF ISLAMIC FINANCE IN becoming, slowly but surely, part of the DNA of the IsDB Group. ACHIEVING SDGs We were delighted to receive the UN Deputy Secretary-General at the IsDB HQ. Ms. Amina Mohammed, after meeting with H.E. the President, was kind enough to indulge the IsDB SDGs Community of Practice with an open and frank conversation. IS ZERO HUNGER POSSIBLE BY 2030? For more than an hour, management and staff asked tough questions about progress made and what needs to be done differently in order to achieve the SDGs. The answers were even more thought-provoking with a challenge and a call to action to every development practitioner, individuals and organizations, who are genuinely interested in comprehensive development and human dignity. The “IsDB is ensuring that SDGs are upcoming HLPF and the SDGs Summit during the General Assembly will take stock embedded in our country programs of progress made on the 2030 Agenda which was endorsed by all 193 member by adopting new thematic and states back in 2015. It remains to be seen if the Heads of States would be able to sector policies fully aligned sharpen the mandate of the 2030 Agenda with a compelling call for a ‘decade of with SDGs. Ensuring our policy action’ to accelerate progress towards achieving the SDGs by 2030. Apparently, alignment is key to staying the without doing things differently, the world is off track and the jury is still out on course in achieving the SDGs.“ whether we will be able to leave no behind! Mansur Muhtar, VP, Country Programs, IsDB Views expressed in this Newsletter are those of the authors and do not necessarily reflect the official position of IsDB Group CONTENTS

COVER STRORY 03 IsDB and UN To Strengthen Partnership in Financing SDGs ARTICLES ICD and SDGs: One path, One goal 04 Ayman Amin Sejiny, CEO, ICD ICIEC's Commitment to the Sustainable Development Goals 05 Oussama Abdel Rahman Kaissi, CEO, ICIEC Aligning G20 Infrastructure Leadership with the SDGs 06 Kevin P. Gallagher, Frederick S. Pardee, School of Global Studies Boston University Is zero hunger possible by 2030? 7 07 Ismahane A. Elouafi, DG, ICBA SDG2: Tracking World Hunger using Global Hunger Index (GHI) 2018 08 Syed Abdur Rahman, ERIL “Not just more jobs … but Decent jobs for women” (SDGs 5 & 8) 09 May Ali Babiker Eltahir, Manager, Women and Youth Empowerment Division 10 Social Dialogue: Key to Achieving the 2030 Agenda 10 Shaza Ghaleb Al Jondi, Senior UN Coherence and Partnerships Officer, ILO Regional Office for Arab States Beirut, Lebanon SDG Target 8.b: Towards an integrated global strategy for youth employment 11 Marcelo Cuautle Segovia, Youth Employment Officer, ILO IsDB, ISFD and UNDP Partnership to Empower NGOs for Poverty Alleviation 12 Robert Pasicko, UNDP Alternative Finance Lab, Khemais El Gazzah, Senior Advisor to the DG of ISFD, Ahmed Berthe, Lead NGO & Civil Society Specialist Disruptive technology in a ‘Super-Smart Society’ 13 Moustafa Asim, Division Manager, Global Interdependencies Science Technology and Innovation Department BAPA+40 is an Impetus to the Implementation of 2030 Agenda for Sustainable Development 14 Yuefen LI, Senior Advisor on South-South Cooperation and Development Finance, South Centre When the Map Shapes the Territory: How Can VNRS Shape the Road Towards Achieving the SDGs? 15 Khalid O. M. Ahmed, Young Professional & Yehia Amin, Young Professional The Potential of Islamic Finance in Achieving SDGs 16 Dr. Nosratollah Nafar, Lead Economist 16 Achieving SDG 10 through Islamic Finance: Really? 17 Hylmun Izhar, PhD, Senior Economist, IRTI Paris Alignment and Transition to Green Economy 18 Ahmed Qabani, Manager, Climate Change Division Can the Muslim World achieve SDG 4 with 40% illiteracy rate? 19 Muhammad Jameel Yusha’u, Lead Communications Specialist IsDB and the Road towards SDG #4 20 Jawara Gaye, Global Lead Education Specialist Tackling Inequality at the Grassroots: Investing in Early Childhood Care and Education (SDG 4.2) 21 Dr. Ismael Naiya, Senior Research Economist, ERIL Youth + Tech = Equitable Quality Education 22 Zubair, Founder ZNotes The inclusivity and access to justice in the context of Multilateral Development Banks (MDBs) 22 Dr. Ahmad S. Sackor, Legal Counsel- Legal Division The Future is Decentralized & Private Sector Driven 23 Muhammad Taimur Khan, Manager, Decentralization Facilitation COUNTRY PERSPECTIVE A New Era of Funding to Bolster MC’s Development Ambitions - A Voice from the Field 19 24 Sidi Mohammad Taleb, Director, DRO West Africa The Road to Sustainable Development Goals (SDGs) 25 Salah Mansour, Director, CRS MENA & Europe The greatest challenge to achieve SDG4: Pakistan as an Example 26 Mohamed Abida, Manager Executive Management Support and Protocol Division, Office of the President The African Alliance for Vocational Training with Moroccan Expertise: Supporting SDGs 4 and 8 27 Mr. Moncef Soudani, Regional Coordinator, MENA & Europe, Reverse Linkage Division Relevance of Health Impact Assessments in achieving SDG 3 and related SDGs: 28 A reflection on the role of Sharia’s compliance. Ima Arit Kashim, Global Health Specialist Senegal Urban Sector Portfolio Review shows a confluence of SDGs! 29 Papa Abdoulaye SY, Global Lead Urban Development Social Infrastructure Global Practice Palm Oil Issue in Indonesia: Promoting Economic Growth or Commitment to achieving the SDGs 32 30 Ali Fallahi, Country Economist, Regional Hub Indonesia/ CSMI SDG7: Energy Sector Portfolio Performance Review: Egypt as an Example 32 Hussaain Mogaibel, Global Lead Energy Specialist, Economic Infrastructure Division SDGs Digest is a Newsletter Bandar Alhoweish, Senior Global Energy Specialist, Economic Infrastructure Division published by the SDGs Community REVIEW of Practice (CoP) in IsDB Group. IsDB Development Effectiveness Report (DER) 2018 You can submit your articles, 33 Amir Ghani Meer, Manager Operations Quality & Results feedback, book reviews, reports NEWS and other topics related to the 34 SDGs via [email protected] 35 EVENTS

Views expressed in this Newsletter are those of the authors and do not necessarily reflect the official position of IsDB Group Cover Story

IsDB AND UN TO STRENGTHEN PARTNERSHIP IN FINANCING SDGs • To address the challenges of implementing SDGs

implementation of the SDGs. “That is why Dr. Rami Ahmad was appointed to serve as a Special Envoy on the SDGs so that he can create awareness among the IsDB complexes and in member countries,” Dr. Hajjar stated. In a separate meeting with the Vice President, Country Programs, Dr. Mansur Muhtar and Vice President Partnerships Development, Dr. Mohammed Jouini, Ms. Mohammed discussed how IsDB and UN can strengthen their partnership to deliver his book assesses developmental effective development results in IsDB experience in different member countries. Tcountries as well as British Following that, the Deputy Secretary- expansion following the industrial General participated in an interactive revolution from a developmental perspective. It explains why some conversation with the Staff of IsDB Group nations are rich and others are poor organized by the SDGs Community and discusses how manufacturing of Practice. The UN Deputy Chief made economies flourish and spur he President of Islamic emphasized the importance of dialogue economic development. It explains Development Bank, Dr. Bandar and consultation with client countries on how today’s governments can design and implement industrial policy, and their priorities. THajjar and the Deputy Secretary how they can determine economically General of the United Nations (UN), Ms. “We need to speak more with the strategic sectors to break out of Low Amina Mohammed have discussed MDBs especially the World Bank, the and Middle Income Traps. Closely the need to strengthen the partnership African Development Bank and Islamic linked to global trade and (im) between the two intuitions to scale-up balances, industrialization was never Development Bank. We are being more an accident. Industrialization explains funding for the SDGs. The discussion proactive. That is why the UN is engaged how some countries experience took place when Ms. Mohammed visited in a reform. We need all agencies and export-led growth and others import- Dr. Hajjar at the IsDB headquarters in member states to be convinced of the led slowdowns. Many confuse Jeddah. reform,” stated Ms. Mohammed during the industrialization with the construction discussion moderated by Dr. Rami Ahmad. of factory buildings rather than a The Deputy Secretary-General reiterated capacity and skill building process the importance of institutions like the The UN Deputy Secretary-General through certain stages. Industrial Islamic Development Bank (IsDB) towards expressed concern that many people policy helps countries advance through the successful implementation of the are being lifted out of poverty around those stages. Explaining technical concepts in understandable terms, 2030 Agenda. the world, while a large segment of the the book discusses the capacity and Ms. Mohammed congratulated the IsDB population also falls into hunger. limits of the developmental state in President on the approval to increase the Despite these challenges, Ms. industrialization and in general in capital of the Bank during the Makkah Mohammed stated that she is optimistic economic development, demonstrating how picking-the-winner type focused Summit in Ramadhan, adding that this is that the SDGs provide a framework that industrial policy has worked in a testimony to the trust in his leadership. can help in addressing development different countries. It also discusses In his remarks, Dr. Bandar Hajjar challenges in education, health and the how industrial policy and science; expressed his appreciation on the social sector. technology and innovation policies should be sequenced for best results. partnership between the UN and IsDB. Follow the next edition of SDGs Digest The IsDB President told the UN Deputy for an exclusive interview with Ms. Chief that the Bank is investing a lot in the Amina Mohammed.

SHAWWAL 1440H - JULY 2019 3 Articles

inputs of the questionnaire, the ICD Development Effectiveness Department submits a Development Effectiveness Note assessing how the project is contributing to the SDGs. In 2018, ICD put into practice a comprehensive initiative, which included a set of activities to mainstream SDGs into its operations. The igniting ICD AND SDGs: point of SDGs initiative was the ICD Management’s commitment to align the ICD operations with the priorities of Ayman Amin Sejiny our Member Countries. The President›s CEO, ICD ONE PATH, message on SDGs during the Board Meetings has been key to bring the developed an in-house SDG Dashboard attention of each ICD officer on the Tracking System, tracking the annual subject. In this regard, ICD Strategy progress vis-à-vis the projected ONE GOAL & Policy Department has recently outcomes agreed upon during project’s he Islamic Corporate for the completed a strategy mapping (ref. figure approval. The tracking system generates Development of the Private below) exercise to link the SDGs with real time automated dashboards based Sector (ICD) is a multilateral its strategy and development targets. on the observed impact against the T The mapping exercise showed that ICD pre-agreed and customized reporting development organization and a member of the Islamic Development strategy supports directly and indirectly formats. Bank (IsDB) Group. The mandate of ICD 10 out of the 17 SDGs. Specifically, the Furthermore, to join forces with other is to support economic development Corporation has pledged to concentrate Multilateral Financial Institution, ICD and promote the development of the its investments into many specific has been representing the IsDB Group private sector in its member countries targets: including SDG 7 (energy), SDG in three Multilateral Development through providing financing facilities 8 (jobs and financial inclusion) and SDG Bank (MDB) Taskforces, which aims and/or investments in accordance with 9 (industry and infrastructure), while at mobilizing private sector resources the principles of Sharia’a. As part of its engaging with SDG 13 (climate action) towards achieving SDGs. ICD has efforts to align its operations with the and SDG 17 (partnerships) to impact on also been involved in the International Sustainable Development Goals (SDGs) SDG 1 (poverty), SDG 2 (agriculture), SDG Financial Institutions (IFI) Harmonization of its member countries, ICD has taken 3 (health), SDG 4 (education) and SDG 5 Working Group for the Private Sector a set of steps since 2017. Accordingly, (gender equality). Operations Development indicators since the Corporation has tagged its products ICD also acknowledges the risk of 2014, which enabled the Corporation to and services with SDGs goals (i.e https:// diluting the effect of the SDGs if the further enhance its development impact icd-ps.org/en/short-term-finance) and organizations are undertaking some framework. amended the investment and advisory project activities but do not actually Going forward, ICD also plans to include approval guideline, which requires now contribute. Such “SDG-washing” could a set of targets on SDGs in its 2019 from all new investment and advisory lead to cynicism about the SDGs, as corporate scorecard and provide regular project proposals to fill jointly with their organizations receive recognition reports to the ICD Board. ICD has also clients, a Due Diligence Development for contributing to the SDGs without taken further steps to fully incorporate Impact Questionnaire. Based on the providing anything tangible. In 2018, ICD SDGs into departmental business plans.

Mapping ICD’s 4-Pillar Strategy with SDGs ICD’s 4-Pillar Strategy

Islamic Shift Focus to Finance Development Channels Islamic Finance Channels Invest Engage Impact

Selective Direct Real Financing Sector Investments

Improving the Enabling Enabling Environment environment in Member Countries

Building Building Partnership & Partnership & Resource Mobilizing Mobilization Resources

4 ISSUE NO.8 ICIEC's COMMITMENT TO THE SUSTAINABLE DEVELOPMENT GOALS

agriculture: ICIEC insures non-payment ICIEC role in achieving SDGs: Catalyst role risk for sales of agricultural technologies, of FDI to our MCs equipment and service transactions. To date, As the IsDB Group credit enhancement and ICIEC has supported USD 1.3 billion in this political risk insurance arm, ICIEC’s primary sector, helping to enhance the productivity role is to support expansion trade and flow and incomes of food producers, importers of foreign direct investments (FDI) in OIC and exporters. members, using Shariah compliant risk SDG3: Ensure healthy lives and promote mitigation instruments. ICIEC holds a unique well-being for all at all ages. Since inception, position to facilitate the expansion of intra ICIEC has insured more than USD 500 OIC trade flows and mobilization of finance million in trade and investment in the to realize the SDGs. Oussama Abdel Rahman KAISSI healthcare industry, facilitating the import Due to the global scale, the challenge CEO, ICIEC of critical medical supplies, the construction securing the investment required to meet of hospitals, and supporting a wide range of the SDGs remains the most significant he United Nations’ Sustainable projects that help member countries bolster obstacle to systematic change. Indeed, Development Goals (SDGs) have been their capacity to provide healthcare for all. according to the UNEP Finance Initiative, an influential in galvanizing global support SDG7: Ensure access to affordable, reliable, estimated USD 6 trillion is required, mostly T in the infrastructure sector and in developing to coordinate efforts in ending extreme sustainable and modern energy for all ICIEC poverty and hunger, fighting inequality, has supported numerous power generation countries. This makes it imperative to tackling climate change, and achieving projects and has been instrumental to the mobilize resources from multiple sources sustainable development for all. The SDGs introduction and adoption of renewable including public and private sector entities, outline 17 specific goals and provide a energy technologies in its Member integrating different financing modalities and framework for coordinated effort in helping Countries. ICIEC has insured over USD 15 instruments. alleviate the world’s most pressing social, billion in energy projects including renewable The large gaps in investment call on economic and environmental challenges. technologies, ranging from wind farms to international organizations such as ICIEC to play an instrumental role in catalyzing trade ICIEC is committed to achieving the SDGs small scale solar energy generation. and promoting investment to contribute by playing a decisive role in directing SDG8: Promote inclusive and sustainable decisively to the achievement of these strategies to derive maximum development economic growth, employment and decent goals. ICIEC stands as a crucial platform benefits through trade and investment. work. ICIEC has enabled over USD 2.5 billion in facilitating private sector finance for This approach is fully aligned with the in economic activity for labor-intensive developmental projects that have a great Islamic Development Bank (IsDB) Group’s sectors – such as agriculture and textiles impact in its member countries. As the long-term priority to promote economic – within Member Countries, and over USD institution grows and fosters a stronger resilience and prosperity in member 6.5 billion in trade and investments in the network, it is expected to increase its countries. As part of its mandate, ICIEC least developed nations, generating jobs and influence in driving the SDGs in member seeks to utilize trade and investment growth in these markets over the last two countries. As a member of the Berne insurance to support the Organization decades. Union, the International Union of Credit & of Islamic Cooperation (OIC) countries’ SDG9: Build resilient infrastructure, promote Investment Insurers, ICIEC contributed to the growth and development in ways that are sustainable industrialization and foster group’s USD 2.3 trillion in support for global inclusive and responsive to rapid changes innovation. ICIEC has supported nearly trade and investment flows, accounting for as well as to improve their connectivity both USD 4 billion in trade and investment in approximately 15% of international trade among themselves and with the world. infrastructure, industry and innovation, and investment in 2017. ECAs account for The promotion of investment and trade by mitigating political risk for large-scale the largest share of international project contributes to economic diversification projects, promoting access to finance financing in developing countries, reaching and empowerment by addressing the among Small and Medium Enterprises, USD 100 billion of the total amount of supply- side capacity and investment- who are the catalysts of the economies their trade and investment portfolio. By related infrastructure constraints, including as the backbone of trade and innovation, comparison, official development flows micro, small and medium-sized enterprises and enabling trade between Members and (ODA) roughly amount to USD 50 billion to (MSMEs) needs. Domestic and foreign direct developing countries. USD 60 billion globally every year. investments generate wealth, employment SDG17: Revitalize the global partnership ICIEC & SDGs Into the Future and new market opportunities, which are for sustainable development. Partnership preconditions to increasing the standard Looking forward, ICIEC, a proud member of and cooperation among governments, of living, further driving the achievement of the Islamic Development Bank Group, will civil society, and the private sector are SDGs in member countries. continue to be guided by its mandate to fundamental for achieving the SDGs, and promote economic growth and prosperity ICIEC strategy embraces six of the SDGs they are at the heart of ICIEC’s operations. in its member countries through facilitating which are deeply aligned with ICIEC’s For over 25 years, ICIEC has built strong cross-border trade and investments. These mission as an institution responsible for strategic partnerships – with Member efforts are aligned with the ambitious mobilizing the resources needed to realize Countries, Multilateral Institutions, agenda set forth in the Sustainable inclusive and sustainable development. Export Credit Agencies, Private Insurers Development Goals and have become SDG2: End hunger, achieve food security and & Reinsurers and local & global financial ICIEC’s new signposts for its continuing improved nutrition and promote sustainable institutions. development journey.

SHAWWAL 1440H - JULY 2019 5 Articles ALIGNING G20 INFRASTRUCTURE LEADERSHIP WITH Kevin P. Gallagher Frederick S. Pardee, School of Global THE SDGs Studies Boston University Infrastructure Hub, set up by the G20, says that it will require the mobilization of an extra $236 billion annually to 2030 just to achieve SDGs for energy access, and access to clean water. Fortunately, investing in sustainable infrastructure brings co-benefits to the world economy and is a catalyst for other SDGs. Infrastructure is a foundation for economic growth by creating jobs, spurring industrialization and competitiveness, and connecting people and markets. Sustainable infrastructure can also help with poverty reduction given that it can help in providing basic services and work opportunities. Infrastructure investments reflecting environmental considerations contribute to preserving he G20 has become a champion for natural environment, reducing carbon scaling up infrastructure financing emissions and pollution, and enhancing across the world but needs to align Infrastructure is a T climate resilience and ensuring efficient such leadership with the Sustainable foundation for economic use of resources. Development Goals (SDGs). In 2010, G20 Unfortunately, we are not yet at the scale leaders included infrastructure as one growth by creating jobs, or pace to meet the SDG challenge in of the nine pillars given its importance spurring industrialization general, and sustainable infrastructure for growth in developing countries. The and competitiveness, gaps in particular. There is an urgent 2014 G20 Brisbane Summit endorsed need for leadership committed to the G20 Global Infrastructure Initiative, and connecting people the scale and urgency of action that a multi-year programme to support and markets. is needed. The global community is public and private investment in quality witnessing accentuated social unrest and infrastructure. The G20’s commitment climate change related natural disasters to promote infrastructure was reaffirmed sustainable infrastructure. For NCE, the that threaten our economies and social at the 2016 Hangzhou Summit. Whereas 2-degree scenario are the investments fabric. Decisive action by the G20 to align the 2017 G20 in Hamburg emphasized needed to make an energy transition and its infrastructure ambitions with those of climate change and sustainable an emissions trajectory consistent with the SDGs can make history and secure development there was little explicit a 50% chance of limiting average global our future at the same time. attention to infrastructure. Under the temperature increases to 2°C by the end Argentinian leadership in 2018, the of the century. The OECD (2017) estimate G20 pushed forward the “Roadmap to Kevin P. Gallagher is a professor of is based on a 66% chance of keeping the global development policy at Boston Infrastructure as an Asset Class.” The temperature rise below 2°C. The NCE Japan presidency in 2019 is focusing University’s Frederick S. Pardee School estimates that USD 7 trillion is needed of Global Studies, where he directs on the agenda of quality infrastructure. on an annual basis to reach a 2-degree the Global Development Policy Center. Saudi Arabia has an opportunity target, OECD estimates that USD 6.9 The author of six books on the global to enshrine the SDGs into the G20 trillion is needed—with roughly 75 percent economy, Gallagher serves on the United infrastructure agenda. of the need residing within G20 countries Nations’ Committee for Development Policy and co-chairs the T-20 Task Force The New Climate Economy (NCE) and themselves, roughly USD 5.25 trillion on International Financial Architecture the OECD have each provided estimates per year for G20 and USD 1.75 trillion at the G-20. Follow him on twitter @ of the investments needed to reach for the rest of the world by 2030. That is KevinPGallagher a low carbon, ‘2 degree’ scenario for just SDG 13, ‘Climate Action.’ The Global

6 ISSUE NO.8 IS ZERO HUNGER POSSIBLE BY 2030? has seen plateaus or sharp decreases in yield gain over the past two decades or so, singling out climate change and degradation of land and other natural resources as some of the main causes. Scientists are also raising concern about unforeseeable effects of climate change on the spread of pathogens among major crops. Yet we are still fixated on genetic improvement and biofortification of staple crops as the only options to address food insecurity and malnutrition. We overlook what nature has to offer. There are around 30,000 known edible plant species in the world. More than 6,000 crops have been cultivated for food throughout human history, but fewer than 200 species had significant production levels globally as of 2014, with only nine accounting for over 66 percent of all crop production by weight. Ismahane A. Elouafi DG, ICBA To avoid a potential global food shortage, we must diversify into these underutilized, neglected and forgotten crops that are naturally better at withstanding biotic and n 2015 the global community set some abiotic stresses and are in many cases far more nutritious than the 3 staple crops we noble yet ambitious goals - Sustainable are building our diet around (wheat, rice, maiz). IDevelopment Goals (SDGs) - to be Quinoa, an Andean superfood, is a great example of how collective global endeavor achieve by 2030. One of them, namely can make a difference. In less than a decade, the crop has become a darling of agri- SDG 2, aims to end hunger, achieve food businesses and farmers in over 100 countries. security and improved nutrition and Second, one-third of the total amount of food produced globally is lost or wasted promote sustainable agriculture. Alas, every year. A recent analysis by the Boston Consulting Group estimates that it is 1.6 with a little over a decade left, we have billion tonnes of food worth about 1.2 trillion USD, which is projected to increase if not already gone off track. addressed. That is an unsettling excess at a time when nearly one billion people do not After many years of a downward trend, have enough to eat. global hunger has been on the rise So it is critically important that we improve food supply chains and better tackle food since 2014. The Food and Agriculture waste worldwide. Organization of the United Nations estimated the number of undernourished Third, to grow more food in a sustainable way, especially in marginal environments, people in the world in 2017 at 821 million. that is areas of the world that have biophysical and socioeconomic constraints on And some 2 billion people lack key agricultural production, we need to look beyond mainstream approaches and tap into micronutrients such as iron and vitamin A. the potential of marginal soil and water resources. Scientists list conflict, drought and climate Salinization is causing huge economic losses today in many countries where change-linked disasters among the key agriculture is a major contributor to GDP. factors. In their study, Qadir et al. put the global inflation-adjusted annual cost of salt‐induced There are also many other reasons which land degradation in some 310 million ha of irrigated areas at 27.3 billion USD because deserve more attention. of lost crop production only. First, our global food system is unhealthily In view of these worrying figures, it is more important than ever before to enhance dependent on major crops like rice, wheat productivity and utility of lands and water resources degraded by salinity and other and maize, which are neither resilient nor factors to meet future food demand. nutritious enough. With climate change These resources should be viewed as assets rather than liabilities. Every type of increasing the risks of crop failure is land and water suitable for agricultural production should be used as the Food and haunting the smallholder farmers, who are Agriculture Organization of the United Nations projects a need to produce 70 percent already bearing the brunt. more food by 2050. A study by the University of Nebraska- So even though zero hunger seems to be a far-fetched idea, it is not impossible. If we Lincoln points out that nearly 31% of total embrace for new ideas and realize that there are many options, we still have time to global rice, wheat and maize production end hunger and make sure nobody is left behind.

SHAWWAL 1440H - JULY 2019 7 Articles SDG2: TRACKING WORLD HUNGER USING GLOBAL HUNGER INDEX (GHI) 2018

In terms of undernourishment and child mortality, sub-Saharan Africa has the highest rates, followed by South Asia. In contrast, GHI scores in East and Southeast Asia, the Near East and North Africa, Latin America and the Caribbean, and Eastern Europe and the Commonwealth of Independent States range from 7.3 to 13.2, indicating low or moderate hunger levels. Yet, those regions include countries where hunger and undernutrition rates are serious or alarming. Hunger in the Countries: In many countries, the areas with the lowest stunting levels are predominantly urban areas, such as Syed Abdur Rahman national capitals, which are outliers relative to other parts of the ERIL country. In other countries, there are areas where stunting is exceptionally high, relative to the country, as a whole.

unger is usually understood to refer to the distress associated 2018 Globel Hunger Index with a lack of enough calories. GHI is a tool designed to Hcomprehensively measure and track hunger at global, regional and national levels. GHI scores are calculated each year to assess the progress and setbacks to take measures for combating hunger. Global Hunger Trends: Out of 119 country-rankings, levels of hunger are still extremely alarming in one country (Central African Republic), alarming in six countries (including 3 IsDB member countries) serious in 49 countries (22 IsDB’s) and low or moderate in rest 67 countries (22 IsDB’s), reports the GHI-2018. Hunger and undernutrition worldwide now fall within the serious category, at a value of 20.9, down from 29.2 in 2000. Recognizing the nature of the hunger and undernutrition challenges Number of Countries by Hunger Level facing individual areas within a country can help to better tailor interventions and policies to meet those areas’ needs. In order GHI Serverity Scale to delve more deeply into national averages, the 2018 GHI report 50.0≤ takes a closer look at the hunger and nutrition situations of two ≤ 9.9 10.0-19.9 30.0-34.9 35.0-49.9 extremely low moderate serious alarmimg countries—Bangladesh and Ethiopia—which have serious levels 40 countries 27 countries 45 countries 6 countries alarmimg 6 countries of hunger but have achieved notable progress through a range of 0 10 20 35 50 policies and programs. Source: Authors GHI-2018 Three Key Recommendations: (i) Leave No One Behind; Still, the question remains whether the world, by 2030, will (ii) Implement Long-Term Solutions; and (iii) Show Solidarity by achieve SDG2, which aims to end hunger, ensure food security Sharing Responsibility. and improved nutrition, and promote sustainable agriculture. Observations since 2000 confirm that around 50 countries will fail Composition of The Globel Hunger Index to reach low hunger levels by 2030 as defined by the GHI Severity Scale as 79 countries have failed to reach that designation till date. Given the gains that have already been made, although significant progress is possible, but the goal of achieving zero hunger can be reached by 2030 only if increased efforts and innovative approaches are ensured. Hunger in the Regions: Hunger remains serious in South Asia and sub-Saharan Africa. In both regions, the rates of undernourishment, child stunting, child wasting, and child mortality remain unacceptably high. South Asia has the highest child stunting and child wasting rates of any region, followed by sub-Saharan Africa.

Globel Hunger Index 2000 - 2018 29.2 27.0 23.1 20.9

2000 2005 2010 2018 Source: Wiesmann et al. (2015) Note: The values of each of the four component indicators are standardized. See Appendix Child Wasting in Stunting in Proportion of A for the complete GHI formula and Appendix B for the source. SDGs = Sustainable mortality rate children children undernourished Development Goals

8 ISSUE NO.8 NOT JUST MORE JOBS… DECENT JOBS FOR WOMEN (SDGs 5 & 8)

likely to do part-time and temporary jobs generate broad productivity gains and with fewer avenues for advancement, than improve many other development men. Women are particularly concentrated outcomes for themselves and others, as in domestic labor or work in the informal they reinvest 90% of their income into sector in jobs that lack security and are not the health and well-being of their families covered by labor laws. and communities ranging from better Efforts were focusing on increasing nutrition to increased years of schooling. women’s access to the labor market Therefore, women should have equal through education and training or the access to decent jobs and productive creation of more jobs. Considerable resources. May Ali Babiker Eltahir progress has been made on women’s Addressing gender gaps in accessing Manager, Women and Youth access to education, however, there decent and quality jobs is key for the Empowerment Division was no focus on improving the quality realization of the sustainable development of education or training to respond to agenda. Promoting more decent jobs ne of the most visible and the market needs. Women are typically for women requires a multidimensional transformative elements of underrepresented in the fields that usually approach that involve all the stakeholders, the post-2015 agenda is the reflect opportunities that lead to to better- governments, private sector, development O paying jobs. Sustainable Development Goal No. 5, the actors and others. stand-alone goal on gender equality and Moreover, the creation of more jobs for Governments should promote and enforce the empowerment of women and girls women through programs funded by economic policies and development plans that it is also integral to all dimensions of governments or development institutions that prioritize equitable decent job creation inclusive and sustainable development. usually doesn’t lead to the provision including social protection measures for Women empowerment by 2030 requires of sustainable, decent jobs. It rather women. Countries should encourage urgent action to eliminate the root causes reinforces the concentration of women in more girls to take up subjects that provide of discrimination and disparities that still low-paid and informal jobs that don’t have opportunities for better paying jobs and curtail women’s full participation in the social security or any other benefits. Such to end the stereotypes of subjects that public spheres, especially the economic programs have short term objectives that women can/cannot study. Private sector sphere. aims at improving the living conditions should champion initiatives that promote Women form 40% of the global labor force. of women, rather than addressing the women’s economic empowerment However, they are largely concentrated in structural barriers to women’s access to and employment in stable, decent job part-time, low paid, and insecure jobs. As decent job opportunities.. opportunities. Finally, programs targeting a result, women disproportionally account Women’s access to decent work is an improving economic opportunities for for 60% of the working poor, earning 24% essential measure of inclusive growth. women should aim creating the conducive less than men. They tend to run enterprises Evidence has shown that increasing eco-systems for decent job opportunities in less productive sectors and are more women’s access to decent work, can at the policy and programmatic levels.

SHAWWAL 1440H - JULY 2019 9 Articles SOCIAL DIALOGUE: KEY TO ACHIEVING THE 2030 AGENDA

positive impact on wages, working conditions, and labour productivity3. But beyond SDG8, social dialogue is also a “Social dialogue is defined critical element for achieving other goals, including goal 1 (poverty reduction), goal by the International 5, (gender equality), goal 10 (reduced Labour Organization (ILO) inequality), and goal 16 (peace, justice and strong institutions). to include all types of The challenges facing the world of work negotiation, consultation today are formidable. According to the or simply exchange of ILO, 190 million people are unemployed in the world today, out of which 65 million information between, or Shaza Ghaleb Al Jondi are youth. Some 300 million workers among, representatives of Senior UN Coherence and live in extreme poverty (below US$ 1.9/ Partnerships Officer day)4, a reflection of the poor quality of governments, employers ILO Regional Office for Arab States jobs offered and the low wages earned and workers, on issues Beirut, Lebanon by these people. Societies have become unequal; this is to a great extent the result of common interest of weakened labour market institutions relating to economic and he 2030 Agenda for Sustainable and social dialogue. Development, adopted as a result of social policy”. Based on consultations involving more than These challenges are amplified in the freedom of association T Arab region, which for decades has been 1 million people across all countries and backgrounds, places at its heart a strong characterized by high unemployment and collective bargaining, commitment to reducing all forms of rates, particularly among youth, low social dialogue takes inequalities and “leaving no one behind”. labour productivity, informality, poor To achieve this ambitious agenda and working conditions, low labour force different forms and is its 17 Sustainable Development Goals participation rates among women, and adapted to each country’s (SDGs), we need to continue to uphold low or inadequate social protection the standards of inclusiveness and coverage. All these deficits have context. multi-stakeholder engagement and converged to form a vicious circle that partnerships as underlying principles for is hampering efforts to make significant

its implementation. advances in reducing poverty and 5 inequality. At the heart of these deficits and solutions to be agreed . Where social One critical modality of multi-stakeholder dialogue mechanisms existed, they were has been weak governance, manifested engagement is social dialogue. While the neither institutionalized nor sustained. 2030 Agenda does not explicitly mention in weak industrial relations and lack of In this context, the ILO Regional “social dialogue,” it acknowledges effective channels of communication Office for Arab States organized in the centrality of decent work to the between governments and citizens that April 2019 a south-south dialogue achievement of sustainable development, would enable their voices to be heard amongst governments and employer as enshrined in SDG8 (Decent work and inclusive growth). This de facto implies 3 ibid recognizing social dialogue as a tool 5 ILO-UNDP (2012) –“Rethinking Economic for negotiation and consensus building 4 Global Commission on the Future of Work and ILO Growth: Towards Productive and Inclusive Arab (2019) – “Work for a brighter Future” Societies” among the tripartite actors from the world of work1: governments and worker and employer organizations. Indeed, evidence shows that social dialogue, underpinned by the fundamental principles and rights at work, can foster socio-economic progress and can be a governance instrument for the realization of sustainable development, representing an essential means for implementing the SDGs2. Social Dialogue has had proven

1 Social dialogue is one of the four key pillars of the Decent Work Agenda, the other three being employment creation, workers’ rights, and social protection. 2 ITUC (2018) – “What policies are needed to achieve Goal 8?: The trade union recipe for SDG implementation”

10 ISSUE NO.8 and worker representatives from Iraq, Jordan, Kuwait, Lebanon, the Occupied Palestinian Territory, and Oman. The aim of the dialogue was to foster exchange of knowledge and experience SDG 8.B: TOWARDS AN on the engagement of the ILO’ tripartite constituents in the implementation, INTEGRATED GLOBAL monitoring, and reporting of the 2030 agenda, with a focus on SDG8, and identify ways to enhance their role and STRATEGY FOR YOUTH engagement in these processes. Key conclusions are: EMPLOYMENT 1. Increased political, economic and social distress and armed conflicts have exacerbated pre-existing monitoring framework, and a budget. development challenges in the Without these elements, it is not easy Arab region and further exposed to determine if youth employment inequalities. Social dialogue is strategies are being operationalized a proven powerful tool in these and to monitor their progress in contexts to stabilise social countries and regions. relationships and pave a way As part of Goal 8 of the UN forward, by gathering economic Sustainable Development Goals and social actors and governments (Promoting sustained, inclusive around the table6. and sustainable economic growth, full and productive employment 2. Implementation, monitoring and Marcelo Cuautle Segovia and decent work for all), Target reporting on SDGs needs to adopt a Youth Employment Officer, ILO 8.b aims “by 2020, to develop participatory approach that engages and operationalize a global all concerned stakeholders, including strategy for youth employment employer and worker representatives Ever since the economic and financial and implement the Global Jobs and civil society. Mechanisms need crisis of 2008, youth unemployment Pact of the International Labour to be put in place and sustained to has been a top policy concern. In Organization”. In order to achieve ensure that these processes are not 2012, a “Call for action” for youth this, we first need to determine what ad hoc and one-off events. employment was adopted by are the strategies to advance youth 3. In addition to their participation representatives of governments, employment and to what extent they Voluntary National Reviews reports employer organizations and are being implemented. Indicator (VNRs), civil society and social trade unions of the 185 member 8.b.1, linked to Target 8.b, measures partners can submit shadow reports States of the International Labour the “existence of a developed and to provide their views and reflections Organization (ILO) at the International operationalized national strategy on the implementation of the 2030 Labour Conference. The Call for for youth employment, as a distinct Agenda and SDGs. action established a set of guiding strategy or as part of a national principles, while recognizing that employment strategy”. In other Looking forward, there is a need to there is no “one-size-fits-all” words, the indicator will not only further promote participatory social solution that applies to all countries. report the countries that have a dialogue as a fundamental means to It also recommended to focusing strategy for youth employment, address the challenges and seize the efforts in five policy areas, namely, but also those that implement opportunities that emerge from changes macro-economic policies, skills and them and to what extent. This will in the wold of work and technological employability, labour market policies, be possible because countries are advances. Beyond its usefulness as a youth entrepreneurship and rights for asked to report concrete elements mechanism for ensuring the coherence young people. of their national youth employment and legitimacy of social, economic, strategies, such as implementation and environmental policies, the right As a result, countries at all levels and progress reports and evidence of to dialogue is a basic tenet to the of development formulated youth an existing budget for the strategy. construction of inclusive societies, and is employment policies through one of the underlying pillars of the 2030 different instruments. Some countries This information is crucial for both Agenda7. The year 2019 is a special year developed specific strategies for national and international youth for reinforcing the centrality of social youth employment (e.g. Republic employment stakeholders. First, it dialogue to the 2030 agenda: it marks the of Korea and Togo). Others, such will make it easy to identify which 100th anniversary of the ILO’s pursuit of as all the countries in the European countries need support and in what social justice, and is also the year during Union, developed action plans for areas (e.g. funding, formulation, which SDG8 and SDG 10 will be reviewed the implementation of the Youth implementation, monitoring, etc.); at the High Level Political Forum (HLPF). Guarantee scheme that aimed to and second, it will be possible to ensure young people's successful draw good practices and successful transition into work. Countries like cases that could help inform 6 “The 2030 Agenda: How Social Dialogue China and Turkey included specific youth employment strategies in combats inequality and ensures social cohesion?” measures for youth in their national other countries and regions. The https://sustainabledevelopment.un.org/content/ employment strategies. However, methodology for data collection was documents/10512Sectoral%20Paper%20HLPF%20 WTUMG%20Final.pdf determining the progress of youth developed by the ILO and endorsed employment strategies is challenging. at the International Conference of 7 ITUC-ILO (2018) “The contribution of Social Dialogue to the 2030 Agenda – Formalising the Many of them lack clear targets, a Labour Statisticians in October 2018. informal economy” https://www.ituc-csi.org/IMG/ pdf/sd_2030agenda_en.pdf

SHAWWAL 1440H - JULY 2019 11 Articles IsDB, ISFD AND UNDP PARTNERSHIP TO EMPOWER NGOs FOR POVERTY ALLEVIATION

Empowering NGOs can help achieve stronger impact in reducing poverty and other sustainable development objectives. Robert Pasicko Khemais El Gazzah Ahmed Berthe In a world with growing UNDP Alternative Senior Advisor to the DG Lead NGO and Civil complexities, new Finance Lab of ISFD Society Specialist innovative solutions – from technological progress to new ways of communicating, financing and marketing– are also critical to support development outcomes.

NGOs to be innovative, their projects to be more visible and their fundraising efforts more successful, they will be trained and supported to create their crowdfunding campaigns, and to develop their networks for sustainable financing. In order to interlink the work and experiences of sDB, ISFD and UNDP recognize have formulated the Program “NGOs different NGOs, the project includes the significant role of Civil Society Empowerment for Poverty Reduction” the development of an aggregating IOrganizations (CSOs), including Non- aiming at empowering NGOs to improve platform TADAMON (Arabic: solidarity) Governmental Organizations (NGOs), as the socio-economic well-being of to serve as a “Trip adviser” for citizens valuable development partners that help hard-to-reach communities through and private sector to make it easier to promote citizen participation, enhance better identification of impactful NGOs financially support the humanitarian and sustainability and alleviate poverty to (mapping), and supporting these NGOs development efforts of NGOs. This will be accelerate progress towards the SDGs and in their work to increase education of done by linking numerous crowdfunding especially SDG1. refugees and remote communities, job campaigns from NGOs supported through creation, building resilience and stronger the Program from a number of existing NGOs’ contributions are particularly community livelihoods. Over the next five crowdfunding platforms. needed in IsDB member countries (MCs) years, this project – sponsored by ISFD, where a number of socio-economic Crowdfunding and technologies such designed and implemented by IsDB and challenges are keeping millions of people as blockchain and social impact bonds supported by UNDP – will be rolled out in in the trap of poverty, violent conflicts, are already changing the development 57 member countries to empower NGOs insufficient access to clean energy and landscape, bringing about new development and their humanitarian water, lack of skills and education, out of mechanisms and models of thinking. initiatives. school children and unemployment. Even in fragile settings within countries The project will include a mapping, like Somalia or Sierra Leone, NGOs with Empowering NGOs can help achieve screening and categorizing (according smart phones, mobile payments and stronger impact in reducing poverty and to their activities and field of work) of blockchain-based IDs are creating new other sustainable development objectives. national NGOs and CSOs in MCs operating value and impact, achieving more efficient, In a world with growing complexities, new in humanitarian or development contexts, effective and transparent development innovative solutions – from technological indicating which organizations are goals. With this new initiative, the Islamic progress to new ways of communicating, relevant and where there may be a need Development Bank Group and UNDP aim financing and marketing– are also critical for support. In order to empower NGOs to to empower more NGOs to be able to to support development outcomes. get visibility for their work, the project will perform better, recognizing their important It is in this context that ISFD and also include trainings on communication, role in bringing positive transformational IsDB Human Development Division management and accountability. To enable change in the communities they serve.

12 ISSUE NO.8 DISRUPTIVE TECHNOLOGY IN A "SUPER- SMART SOCIETY"

question of what is next! As technology civilization creating what is called the is evolving in unpresented manner, “Information Society”. new society is forming. A society that An integral enabler of the SDGs; Science, is fostering technology leaps such as Technology and Innovation (STI) Artificial Intelligence (AI), Internet of addresses challenges related to society Things (IoT) and Big Data. The fusion of development and economic growth by similar disruptive technologies with the elevating the standards of living and emerging human needs is creating what improving societies despite of the limited is known as the ‹super-smart society› or resources and the unfortunate increase in what Japan is endorsing as Society 5.0. Moustafa Asim the exploitation of the planet resources. Historians recorded the development To better leverage on success stories that Division Manager, Global Interdependencies of society starting from the elementary IsDB has accomplished in this arena, we Science Technology and Innovation Department hunting and gathering society then could invest in implementing the concept moving to the agricultural society. With of Society 5.0 by means of rethinking the the introduction of major inventions STI ecosystem and its interdependency such as electricity, the steam engine with the SDGs in the member countries. ot more than a couple of centuries and the discovery of fossil fuel, the In this prospective, several SDGs come to ago, man would only dream of industrial society became more dominant mind including (4) Quality Education, (7) Nspeaking to someone in another and allowed the mass production of Affordable and Clean Energy, (8) Decent city directly. Nowadays, we, sometimes, standardized products. It was not until Work and Economic Growth and (11) th are more connected with acquaintances the second half of the 20 century where Sustainable Cities and Communities. in other continents then relatives who information technology and digitization Seamless integration between new are in the same room. This poses the vastly impacted the development of technologies and social activities is Evolution of Societies up to Society 5.0 essential in order to accomplish this. For instance, robotics can take part in the children and elderly care, IoT can help the less privileged interact with the world, AI Society 5.0 can help develop new ideas into useful products, Big Data can identify trends Super Smart Society and opportunities to improve education Invention of computer systems and curriculums to better serve Start of distribution of information the needs of the community. Information Society Invention of a steam In line with the vision of H.E. in locomotive establishing IsDB as role model for the Start of mass production world in this prospective and with the Industrial Society introduction of the Transform Fund and Development of the Engage platform, IsDB has boundless irrigation techniques Firm establishment of potential in being key driver of such move settlement in its member countries. Those initiatives Agrarian Society could introduced a much-needed mechanism to facilitate and encourage Coexientence with nature new ideas with a variety of disciplines and to provide them with the funding and Hunting Society guidance to take them to the next level, henceforth, enabling IsDB to be a leader in The birth of 13000 BC End of 18th century End of 20th century From 21st century human beings establishing the “Super-Smart Society” in (Source: Keidanren) member countries.

SHAWWAL 1440H - JULY 2019 13 Articles BAPA+40 IS AN IMPETUS TO THE IMPLEMENTATION OF 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT

Yuefen LI Senior Advisor on South-South Cooperation and Development Finance, South Centre

he United Nations Second High- Southern countries which further discovered Development Assistance has been diluted level Conference on South-South the strength of collective self-reliance to and declining in the context of declining TCooperation (BAPA+40) held in March counter financial instability.2 A decade of multilateralism. 2019 in Argentina was meant not only to almost synchronized economic expansion The BAPA+40 Outcome Document includes commemorate the 40th anniversary of the before the 2008 global financial crisis important future areas of work which adoption of the Buenos Aires Plan of Action was a period of fast expansion of SSC in should help realize the full potential of (BAPA) but also to give further impetus volume, partners and modalities covering SSTrC in the context of Agenda 2030. to the already fast expanding South- the political, economic, social cultural Currently, development partners have been South cooperation (SSC) which has been and technical domains. The post-crisis actively engaging in designing ways to fully acknowledged as an important tool for the period has witnessed how some emerging and effectively implement the Outcome implementation of the 2030 Agenda for developing countries have gained stature Document including enhancing partnership Sustainable Development. in the international cooperation landscape among institutions in their common The conference took place at a challenging as their scale of SSTrC has reached an endeavor to promote SSTrC. For instance, time when the international system extent which cannot be overlooked, though the IsDB, the South Centre and United has been at a troubled phase of rising far behind North South cooperation. Its Nations Office on South-South Cooperation geopolitical tension, deliberate weakening potential has been appreciated more have already started to discuss their of multilateralism by some countries keenly with rising nationalism and trade partnership in implementing some selected and increasing protectionism, as well as protectionism in some countries. areas indicated in the outcome document. an emerging tendency to retreat from The fast expansion of SSC is not only These partnerships will build bridges, globalization and to adopt inward-looking because a number of emerging economies overcome divergences and consolidate the 1 policies, or deglobalization. The preparatory have made important progress in catching ongoing development-oriented cooperation, process and the BAPA+40 conference itself up with their peers in the North, but more which may, to some extent, fill in the gap left have provided the international community importantly as a demonstration of solidarity by the weakening multilateralism. with a good opportunity to review the among the South. The proximity in historical Three years have passed since the adoption changing and still evolving dynamics and background and development stages have of the 2030 agenda, however progress increasing importance of South-South made SSC not only more cost effective made in some areas are limited.3 It is of cooperation. but also more responsive to development utmost importance to maximize South- The SSC has gone through ups and problems. The diversity among the Southern South cooperation and leverage global downs. It was only a trickle by volume in countries have provided many opportunities partnerships to implement BAPA+40 the1950s and 1960s. The 1970s saw an to forge effective partnerships to benefit Outcome Document to support countries increase of SSC which was mostly in the from the experiences of each other while and the international community in form of technical assistance programs. promoting economic growth. Mutual achieving the noble Goals of the 2030 The debt crisis and the imposition of benefits enjoyed by both SSC providers agenda. While acknowledging SSTrC as structural adjustment programs on some and recipients have initiated a snowballing a fundamental tool for the attainment of countries in the 1980s dampened the effect of SSC activities. The horizontal SDGs, the North-South cooperation should SSC as countries were preoccupied with partnership relationship is a reflection of also be scaled up as it constitutes the major their own crisis resolution. However, the the SSC principles of peer-to-peer learning part of development cooperation. If not Asian financial crisis in the 1990s led to and mutual benefit, which make SSC effectively done, our aspiration of leaving increasing financial cooperation among the more attractive at a time when Official no-one behind would be elusive.

1 Bank for International Settlement (2018). 2 Y. Li, forthcoming. Financial cooperation among 3 The Sustainable Development Goals Report 2018. Globalisation and deglobalisation. BIS Papers No 100. developing countries. South Centre United Nations, 2018

14 ISSUE NO.8 WHEN THE MAP SHAPES THE TERRITORY: HOW CAN VNRS SHAPE THE ROAD TOWARDS ACHIEVING THE SDGs?

stakeholders to exchange analyzing the data, if it were to be available. information and ideas, as well Developing efficient data collection systems as highlight the need to localize and data-analyzing organs will help MCs, the SDGs, develop efficient data through conducting VNRs, measure what collection and protection systems, they treasure, not the other way around. and to devise efficient strategies Finally, with regards to the SDG financing and effective develop partnerships gap, which is only being exacerbated to fill the SDG financing gap. by declining FDI figures, VNRs can help Indeed, the key messages from the Member Countries to think of ways and above-mentioned discussion may means to scale up domestic resource Khalid O. M. Ahmed Yehia Amin be summarized in the following mobilization, develop more innovative points. First, the very process of resource mobilization tools, reprioritize Young Professional Young Professional creating VNRs is beneficial for the government spending, and allow for a submitting government, because greater involvement of the third pillar. it allows, and even forces, different enowned Polish-America scholar We may, therefore, conclude, that if properly internal stakeholders to share information Alfred Korzybski once famously conducted, VNRs may be a way of altering they would otherwise have not shared with proclaimed that “the map is not the and improving our reality, i.e. the map may R each other. territory”. The founder of general semantics shape the territory. was, in that instance, emphasizing the Second, Pakistan’s federal system of difference between models of reality and governance provides a very clear example reality itself. But can models of reality of the importance of localizing the shape reality itself? Can we not, especially SDGs. Aggregating data from Pakistan’s when it comes to policymaking and the highly diverse four provinces and three practice of development, shape our reality regions would lead to diluted results by measuring it and properly devising and improper recommendations. VNRs, plans and targets to improving it? More therefore, must showcase diversity by specifically, can Voluntary National Reviews location, and consequently, it should be (VNRs) shape the road towards achieving local governments that, using a bottom-up the SDGs? This was the main question approach, determine SDG achievement around which some of the world’s most plans. prominent policymakers, academics and Third, the weak state of data collection politicians, gathered, on a rainy afternoon and protection systems in IsDB Member in the ancient city of Marrakech, on the 5th Countries is a source of genuine concern of April 2019, on the sideline of IsDB’s 44th and a major obstacle to devising useful Annual Meeting.1 VNRs, since without baselines, neither The VNR mechanism is an innovation in the progress nor deterioration may be follow-up and review mechanisms of the measured. The concern is only exacerbated 2030 Agenda for Sustainable Development. by the lack of internal organs capable of The Agenda 2030 encourages member states to “conduct regular and inclusive reviews of progress at the national and sub- national levels, which are country-led and country-driven”, and voluntary. In that sense, VNRs may be seen as a means of encouraging internal governmental and non-governmental

1 The panel discussion, opened by remarks by the President of IsDB, was moderated by IsDB’s Special Envoy on SDGs, Dr. Rami Ahmad, and was composed of Niger’s Minister of Planning, H.E. Aichatou Kane, Egypt’s Minister of Planning, Monitoring and Administrative Reforms, H.E. Hala Helmy El-Said, Pakistan’s Minister on Institutional Reforms and Austerity, Advisor to the Prime Minister, H.E. Dr. Ishrat Hussain, Morocco’s Minister of Energy, Mines and Sustainable Development, H.E. Aziz Rabah, and the World Bank’s Senior Vice President, H.E. Dr. Mahmoud Mohieldin. Prof. Jeffrey D. Sachs, Professor at University of Columbia, contributed to the discussion via a recorded video message.

SHAWWAL 1440H - JULY 2019 15 Articles

able to mobilize the required amount of finance to achieve the targets of the 2030 Agenda, they need to represent Islamic finance has THE new mechanisms to mobilize additional sources of finance, both domestic and strong potential international for achieving SDGs. In this in promoting both POTENTIAL context, expanding financing will be critical to meet the investment needs of social and economic SDGs effectively. It is, therefore, vital to discover other innovative financing tools projects related to OF ISLAMIC to support SDGs and the key question is SDGs. While Zakat how to design a broader set of financing instruments to increase the amount and Awqaf have great of financing that make sense to each potential to support FINANCE IN country. small size and social As a system, Islamic finance helps stimulate economic activity and programs, sukuk ACHIEVING entrepreneurship towards inclusive (Islamic bonds) can economic development, financial and social stability, and comprehensive successfully finance SDGs human development. Traditionally, large scale projects Islamic finance possesses models for solidarity-based financing with important such as energy, features of social sustainability. It is worth transport, roads and to stress that the entire health, education and welfare budget during the Osman shelter. Caliphate based in Istanbul came from its charitable foundations. The experience of Malaysia, Indonesia and Bangladesh also economic projects related to SDGs. While shows that Waqf can be used as a viable Zakat and Awqaf have great potential to alternative model for supporting social support small size and social programs, infrastructure (health and education). sukuk (Islamic bonds) can successfully The role of Waqf has great significance finance large scale projects such as in countries with high levels of exclusion energy, transport, roads and shelter. To and deprivation as it can play a critical fully utilize Islamic finance in supporting Nosratollah Nafar role in protecting the poor and vulnerable SDGs, the Bank needs to play more Lead Economist against sudden risks of unemployment, active role in promoting knowledge of hunger, illness, drought, and other its member countries about these types calamities. It is also worth to mention he Sustainable Development of finance and explore the relevant that they are not restricted to the Muslim Goals (SDGs), which cover a policy, legal, regulatory and institutional community and can be shared beyond wide range of development interventions necessary to expand T religious, cultural, racial and sectarian issues were adopted through wide Islamic financing as well as create a boundaries. and extensive consultations with the common platform for the regulators of member countries of the UN in 2015. The Generally, Islamic finance has strong the Islamic financial services industry to prominence of SDGs will certainly direct potential in promoting both social and enhance constructive dialogue. the development plans over the next two decades as they embrace a universal approach to the sustainable development agenda. According to the UN, the financial gap to achieve the SDGs is about $2.5 trillion per year in developing countries. This means that high financing demand of SDGs will not be met with current pace of investment due to various obstacles; notably, the shortage of fiscal space because of global economic recession, and the hesitancy of private sector to put capital to long-term and risky investment particularly in low- income countries. Given the fact that, developing countries particularly least developed countries are mostly less

16 ISSUE NO.8 ACHIEVING SDG 10 THROUGH ISLAMIC FINANCE: REALLY?

beneficiary of the implementation of such concepts. These three components The new era of industrial have altered the profile or body of revolution 4.0 that is Islamic financial contracts resulting in somewhat synonymous the financialization of the entire Islamic with the use technology financial services industry. and digitization could In the process, one of the an pave the way for unpreventable outcomes is a ‘shift’ in the Islamic finance to be natural domain of contract; from initially being classified as a benevolent contract more committed to to now being a commercial contract; a Hylmun Izhar contributing to SDG10 vivid example is kafalah contract; upon Senior Economist, IRTI as it provides a new which a fee is now permissible. This platform aside from is possible since in the contemporary he industrialization of Islamic the ‘old fashion’ way practice, kafalah has essentially been finance along with its inevitable molded into ‘shirkatul wujuh’ using the commercialization could be likened of conducting financial principle of tab’iyyah or subordination. T transactions. to two flips of the same coin. Rightly so, Financialization, as Palley (2007) the high streets of Basra historically were contends, is a process whereby financial replete with sayarifah and jahabidhah markets and financial institutions gain that the banking network in Basra was technique (especially double wa’ad) greater influence over economic policy regarded by a Western historian as “the applied to Islamic financial contracts. and economic outcomes leading to a Wall-Street of the Middle Ages” (Heck The white paper by Deutsche Bank in supreme superiority of financial sector 2006). Furthermore, the contemporary 2007 was perhaps the first documented age of Islamic financial engineering that articulation on the use of double wa’ad over real sector. The consequential is characterized by a greater reliance in contemporary Islamic financial impacts of this process would be a) an of plugging ‘classical Islamic financial engineering. Second, the deployment of elevated significance of the financial contracts’ into an Anglo Saxon based commodity murabaha through the use of sector relative to the real sector; b) banking model and a conventional tawarruq for both liquidity management income transfer from the real sector to securitization technique in Sukuk and personal financing purposes. Third, the financial sector; c) increase income issuance has proven to have made is the operationalisation of the concept of inequality; and d) propagation of debt Islamic finance look no different than beneficial ownership and the extension of creation instead of wealth creation. its conventional counterpart. Such an the khulta (mixture) principle to the field Having said the above, it has become era, which commenced in mid-nineties of commercial transactions; of which clear that under the existing commercial has been considerably exacerbated Islamic capital market through sukuk institutional set-up, reducing inequalities by the introduction of; first,wa’ad issuance has undoubtedly the great has never been the ultimate ‘natural’ objective of Islamic financial institutions; hence it may not necessarily be attainable. The commercial underpinning, some argue, is just too overwhelming. In order to be part of SDG 10, there is no other way for Islamic finance but to change. The new era of industrial revolution 4.0 that is somewhat synonymous with the use technology and digitization could pave the way for Islamic finance to be more committed to contributing to SDG10 as it provides a new platform aside from the ‘old fashion’ way of conducting financial transactions. And this perhaps is a new momentum that Islamic finance can’t afford to miss. We shall see…

SHAWWAL 1440H - JULY 2019 17 Articles PARIS ALIGNMENT AND TRANSITION TO GREEN ECONOMY

Ahmed Qabani Manager, Climate Change Division he association between Climate countries with available technologies MDBs to comprehensively integrate Change with risk and crisis has and early movers’ advantage would climate change considerations in their Tnever been clearer. With IsDB have a higher share of such benefits. different operations and support this mainstreaming climate action in its Nevertheless, this is more reason for green economy transition. One of the operations and carrying out climate risk Development agencies and MDBs to key building blocks of the framework is screening for all projects with physical ramp up their support to developing Engagement and policy development assets, the bank is now in a better countries to enable them to move to support. MDBs, including IsDB, look to position to understand the physical more sustainable investments and work play a more proactive role in working climate risks that face its projects fast towards such transition. with governments for developing their and address them more effectively. low carbon and resilient development IsDB is currently actively working with all Nevertheless, not enough attention is pathways that would enable them to major MDBs in developing a framework given yet to what is one of the key pillars achieve the sustainable development for Alignment with the Paris agreement of the new IsDB Climate Change Policy. goals. which was announced at COP24. Namely, Green growth and supporting This framework is expected to enable Moving forward, one of the key issues the transition to a green economy. that IsDB is to focus on, is the upstream Business as usual is no longer an country work including country acceptable option in the development diagnostics and dialogue for identifying world in light of climate change. Green Green growth is and developing green investments, green growth is an opportunity for better an opportunity for global value chains and investments that food security through climate smart better food security help create green jobs. While proofing agriculture, sustainable land use and through climate investments against climate risks may water efficiency, better access to energy be important, this upstream work with through renewables, better access to smart agriculture, member countries is urgently needed jobs and markets though mass transit sustainable land use to help enable them to accelerate and electric mobility, and an opportunity and water efficiency, their green growth transition, taking to have smarter, more efficient and more better access to energy into account each country’s own inclusive cities. circumstances and needs to ensure through renewables, equitable growth and just transition The 2018 New Climate Economy Report better access to jobs supported by clear national and sub- estimated economic benefits of up to and markets though national strategies and programs. US$ 26 Trillion in Economic benefits up to 2030 from shifting to a low carbon mass transit and IsDB member countries may still be economy when compared to business electric mobility, and facing some of the same development as usual. However, there is still no clear an opportunity to have challenges they were facing 40 years ago breakdown of what the share of IsDB smarter, more efficient when IsDB was established. However, the member counties of such benefits may bank is now part of shaping a greener, be. Significant technology and market and more inclusive more sustainable pathways for its progress have been seen over the last cities. member countries to transition to and few years and naturally developed achieve their development goals.

18 ISSUE NO.8 CAN THE MUSLIM WORLD ACHIEVE SDG 4 WITH 40% ILLITERACY RATE?

they are minorities, for example in North First, the major political and economic America and Europe. The story is the institutions of the Muslim World, i.e. same in countries like South Africa, Organization of Islamic Cooperation Rwanda, Burundi and Madagascar where (OIC) and the Islamic Development Muslim minorities tend to have higher Bank (IsDB), should partner to organize educational attainment compared to a global summit on education at the Christians, according to the study by level of heads of state. The summit the Pew Research Centre. Here is the should provide the political will and question, how can the objectives of SDG resources to address the challenges 4 on equitable and quality education and of education in the Muslim World. life long learning for all be achieved by the year 2030? Second, IsDB can partner with ISESCO to Muhammad Jameel Yusha'u conduct a major study on the budgetary Lead Communications Specialist If we go by the projection of the Pew allocation to education in the Muslim Research Centre that the global Muslim World. UNESCO recommends 15-20% population will increase by 35% by 2030, budgetary allocation to education. How that is from 1.6 billion in 2010 to 2.2 many Muslim countries implement this billion in 2030; it means there would recommendation and is it enough to o you know that nearly 40% of be around 880 million illiterates in the address the education gap in Muslim the population in the Muslim Muslim World by 2030 if the situation DWorld cannot read and write? does not improve. countries? Third, there should be global Are you aware that nearly four in ten forum for Muslim philanthropists who Muslim adults, roughly 36% of adults should be presented with this situation in the Muslim World, cannot read and and be encouraged to dedicate more write? Would you believe that 65% of of their resources to education. Fourth, Muslim adults in sub-Saharan Africa utilizing and engaging the Muslim are illiterate, ditto 42% in the MENA diaspora to contribute their quota region? Yet almost 100% of Muslim through voluntary service in various adults in North America can read Muslim countries. I am glad IsDB is and write, and 95% of Muslims in planning to establish a volunteer Europe have some form of formal program, all and sundry should education. embrace this golden opportunity. Well, according to a 2017 study Fifth, embracing the power of by ISESCO entitled “Strategy for technology to reduce the cost the Development of Education of building infrastructure for in the Islamic World,” a major education. Data from statistica impediment to achieving suggests that the number of socio-economic development in mobile phone users will reach 5 the Muslim World is educational billion this year. This is the perfect backwardness with 40% of the opportunity to embrace mobile Muslim population being illiterate and up to 70% of the population in certain technology for education. Sixth, think Muslim countries. out of the box. The former Central Bank Governor of Nigeria and the Amir of A study by Pew Research Centre on Kano, Muhammad Sanusi II, recently religion and education around the world Perhaps of all the challenges in achieving called for all mosques in areas without found that “globally, Muslim adults have the SDGs, this is the most momentous. schools in Kano to be used as schools an average of 5.6 years of schooling. But, I am not unmindful of the threat posed except during prayer times. It is difficult regionally, the average ranges from 13.6 by poverty (SDG 1) and hunger (SDG 2), to disagree with him. years among Muslims in North America but the herculean task is the strategy (a population projected to increase from that will transform the 40% of the Muslim In the words of Malcom X, “education is 3 million to 10 million people by 2050) World into an educated, productive, and the passport to the future, for tomorrow to just 2.6 years in sub-Saharan Africa fit-for-purpose population. The year belongs to those who prepare for it (where the number of Muslims of all ages 2030 is not far away from us. It is only 11 today.” If you are still in doubt, read is expected to expand from 248 million in years away. Figures and statistics cannot the exegesis of this Quranic verse: 2010 to 670 million by mid-century).” change anything, it is collective action “Say, ‘Are those who know equal to It is interesting to note from this and political will that will transform the those who know not?’ It is only men of data that Muslims are doing better in situation. What is the solution then? Here understanding who will remember” (Az- achieving educational success where is my penny of suggestions. zumar, Verse 9).

SHAWWAL 1440H - JULY 2019 19 Articles IsDB AND THE ROAD TOWARDS SDG#4

amongst other social ills. The new IsDB Education Sector Policy adopts the theme of “learning for human Attaining SDG #4 implies that learners development” and recognizes that efforts must acquire the requisite knowledge and aimed at building the fundamentals of skills needed for employability and gainful human development, shall be imperative engagement in society as global citizens; in IsDB’s investment decisions. Thus, an endeavor that IsDB is fully committed supporting Member Countries provide to. The Global Partnership for Education school readiness, tackle the menace of (GPE) estimates that it costs on average out of school children, and ensuring and $1.25 a day per child in low and lower- improving learning outcomes including middle income developing countries to the use of ICT and providing continuous Jawara Gaye provide a full cycle of pre-primary through teacher professional development takes Global Lead Education Specialist secondary education (13 years). The precedence. To fulfil this aspiration, largest share of this cost, 88%, is borne the policy anchors on the principles of ith over $4.5 billion investment by the developing countries themselves, cultivating value-added partnerships, and leaving a funding gap of just 15 cents in education since inception, optimizing education financing. the IsDB has contributed a day per child for the international W community to fill. With the magnitude With this in mind, and against the significantly towards efforts to increase of students in school but not learning, framework of the IsDB President’s Five- school enrolment in its Member coupled with those out of school, there Year Plan (P5P), the IsDB has taken a Countries. Notwithstanding, the number is an urgent need for greater synergy conscious step towards strengthening of primary school aged children who to tackle this apparent crisis in order partnerships engagements while were out of school globally has been to ensure that every child has access building a network of Developers at falling too slowly between 2010 and 2015. to quality basic education in Member the grassroots level to complement Consequently, there was an estimated Countries. government implementation capacity. 57 million children out of school in 2015; To this effect, the out of school children albeit representing a significant drop from program funded by the Islamic Solidarity 100 million in 2000. UNESCO reports Fund for Development aims to leverage of 63 million out of school children in Against the framework grant financing from partners to 2017 with 34 million of them in Sub of the IsDB President’s complement government implementation Saharan Africa, of which 48% (16.5 Five-Year Plan (P5P), capacity by utilizing the services of non- million) are in IsDB MCs in the region. the IsDB has taken governmental organization (NGOs) and More alarming, however, is that millions UN Agencies as implementation partners. of children already in school are not a conscious step This blended financing approach, avails learning, due to lack of adequate learning towards strengthening concessional financing to Member opportunities including well-trained partnerships Countries while creating opportunities teachers, inadequate learning materials, engagements while for NGOs to accelerate their proven and insufficient or unsuitable education initiatives in reaching out to children in infrastructure. building a network difficult circumstances and/ or deprived communities to provide them with access While there is consensus that education of Developers at to quality basic education including a contributes to economic growth, the grassroots level second chance to some. The engagement increases propensity to earn for to complement with the Global Partnership for Education individuals, reduces poverty amongst government is strategically intended to ensure that other pecuniary benefits, the adverse IsDB participates actively in the global learning environment experienced by implementation aid architecture in education and takes a millions of school children potentially capacity. leadership role on behalf of the southern perpetuates poverty, youth unemployment hemisphere.

20 ISSUE NO.8 TACKLING INEQUALITY AT THE GRASSROOTS: INVESTING IN EARLY CHILDHOOD CARE AND EDUCATION (SDG 4.2)

parental background (OECD 2016), which for economic development such as significantly determine their educational technological know-how. qualification, type of their jobs and Although data on ECCE is very scanty in ultimately their levels of earnings. IsDB MCs, available data reveals very low Empirical evidences link early childhood access to early childhood education (ECE) condition to health outcomes and to the poor compared to the rich children academic performance in older years. in many MCs (Table 1). According to the Early health intervention and medical available information, children of the treatment of a child results in better poorest 20% have no or little access to ECE in many IsDB MCs. The data also Ismael Naiya health in both childhood and adulthood reveals wide gaps between the poor and Senior Research Economist, ERIL which lead to better academic the richest percentiles in accessing ECE. performance in future life. This means Inequality Starts at Childhood that children of the poor and those at ECD is critical because improving SDG 4.2 calls for ensuring “that all girls risk of not having the opportunity to cognitive development is more difficult in and boys have access to quality early have good health and nutrition in their older ages. In other words, laying a solid childhood development, care and pre- childhood are at disadvantage over foundation in the early years is significant in advancing the future development of a primary education so that they are ready children of rich families. child in his adulthood. for primary education”. In 2016, about 5.6 Similarly, poor or disadvantaged children million children (about 15,000 children Financing ECCE proved to have very have lower levels of school readiness every day) died before reaching their high returns. It has been observed that compared to rich or advantaged children 5th birthday with Sub-Saharan Africa children that acquired early childhood by the time they start schooling. These accounting for the largest share (WHO).1 education outperform those that start inequalities of opportunity from childhood While many children survived to their their education at older age. Therefore, may remain with disadvantaged maturity, many of them do not meet all children should be given equal children through adulthood, which their full potentials due to their families’ opportunities in education, health and can perpetuate the cycle of poverty. characteristics such as income status, nutrition, and allow them to emerge from Therefore, breaking this cycle entails geographic location, ethnicity, disability, their own efforts when they grow up. reducing these inequalities by providing religion or sexual orientation etc. These equal opportunities in health, nutrition Despites its proven importance, early factors affect child’s nutrition status, care and education for all children from their childhood care and education is not given and opportunities to learn which in turn childhood. due consideration in many IsDB member influence his development and future countries (MCs). The IsDB and the MCs prospects in life. Healthy, well-nourished Inequality of opportunity deters people may consider giving attention to early and happy children who start learning from making good use of their skill, childhood education and development in from early years have the potentials of entrepreneurial capabilities which affects order to address the rising inequality and performing better in schools, becoming economic growth in the long run. It breaking the cycle of poverty among the more productive and thus, earning higher also prevents people from acquiring citizens. Addressing SDG 4.2 is a key to incomes during their adulthood, thereby knowledge essential for skills necessary achieving to many other SDGs. contributing more to economic growth. Early Childhood Development (ECD) refers to “the physical, cognitive, linguistic, and socio-emotional development of a child that happens at various settings surrounding him (such as homes, schools, health facilities, community– based centers etc.) from the prenatal stage up to age eight” (World Bank 2010). 85% of the human brain develops in the first five years and 50% of his cognitive capacity is affected by his immediate environment. Inequality of opportunity is the circumstance people find themselves due to their gender, location, ethnicity or

1http://www.who.int/gho/child_health/mortality/ mortality_under_five_text/en/

SHAWWAL 1440H - JULY 2019 21 Articles THE INCLUSIVITY AND YOUTH + TECH= EQUITABLE ACCESS TO JUSTICE IN THE QUALITY EDUCATION CONTEXT OF MULTILATERAL DEVELOPMENT BANKS (MDBs)

he social inclusiveness and access to justice without discrimination Thave been core at the heart of global discussions including the UN 2030 Agenda on Sustainable Development Goals (SDG). Enshrined as part of SDG 16, the principles of social inclusion and Zubair Janjunia Founder ZNotes access to justice through due process, serve as the bedrock for sustainable hat if the Olympics 100m sprint started with poverty reduction. Addressing the one runner 10m behind the rest? Surely that’d multidimensional aspects of extreme Wbe preposterous! Although there are sadly too Ahmad S. Sackor poverty in the context of said principles many global issues which fit this analogy, a 16-year- Legal Counsel- Legal Division ensures that equitable distribution old me saw it in education as I walked in to my first of resources, opportunities, and international high school exam. Why is it that students other socio-economic rights remain across the world will be sitting the same examination as completely protected. Not only do robust legal norms hold institutional me, affecting our future education and career alike, and settings accountable for broader social inequality and economic disparity yet have been exposed to significantly varying amounts per se; but rather allow disadvantaged social groups to challenge decision of resources and teaching. This unfairness struck me outcomes adversely impacting their lifestyles. Poor communities have been and led to the formation of ZNotes. historically obstructed from ZNotes began as simply a website sharing my revision seeking redress for grievances notes which I maintained over high school. By word of in some development-related mouth, the reach of the website has grown exponentially, cases which is largely due crossing 20 million hits in less than 5 years. The greatest to judicial and financial outcome of the project is the community which grew bottlenecks such as legal fees, around it. Students from across the globe continue to racial and religious barriers. At update and develop further resources, supporting more this juncture, the analytical shift subjects than even textbook publishers. in contemporary development- based debates that remains The impact of education is like a pebble breaking the fundamental is examining surface of an infinite body of water, ripples far reaching. to throw lights on the policy In the context of the Sustainable Development Goals, roles initiated by Multilateral inclusive and equitable quality education helps reach Development Banks (MDBs) in every single goal, including eradication of poverty and overcoming constraints posed promoting employability. It is this vision which has by legal and social exclusion on brought together a team to continue the growth of the poorer societies. platform, truly embodying “for students, by students”. Since its inception, the platform has reached over 2 The wide-range involvement of MDBs in various socio-economic projects million unique visitors, with testimonials being our remains undoubtedly dynamic for supporting governments’ efforts in motivation: a remote team of students spanning 10 time realizing their SDGs. As strategic-driven institutions, bringing poor and zones. The resources have been discovered in as far vulnerable communities into the social development process eases the reaching places as libraries in schools of Nigeria to in the complex relationship between societies and states through enforcing hands of teachers who use them as teaching framework. public inclusion pre-requisites. To substantiate this conceptual pattern, This phenomenal reach is a testament to the sheer nearly all MDBs have comprehensive policies and safeguard measures to impact and maturity in the youth with a mission and address extensive social and environmental problems. In other words, the technological advancement. How many lives, families development projects to be financed by MDBs must provide vulnerable and and communities have those 2 million ripples affect poor communities based on the rule of law, equal empowerment without leaving anyone behind. Generally, the modus operandi followed by MDBs sets as a pre- implementation condition of a project, is to carry out in-depth social and environmental risks assessment and identify the potential impacts expected on concerned groups. In event where resettlement is necessary as result of the planned projects, development partners including governments, would be required to fairly and adequately compensate affected citizens. In summary, legal and socioeconomic rights are significantly pivotal to the strategic development plans of MDBs. As such, partnership engagement should continue to encourage governments to adopt policy reforms that protect the economic, cultural social and as well as environmental rights on the principle of the rule of law. In addition, inclusive social alignment and enhancement of the legal capacity and the institutional structures could be instrumental in the achievability of SDGs.

22 ISSUE NO.8 THE FUTURE IS DECENTRALIZED, AND PRIVATE-SECTOR DRIVEN

Muhammad Taimur Khan Manager, Decentralization Facilitation

ince adoption of 2030 Agenda for sustainable development, 3) Enabling transparent monitoring and reporting on Hub MDB community has committed to delivery of SDGs which operations internally for staff and Management and externally Srequires trillions of dollars of resources, far more than for clients (i.e. developing live operations and service level the combined official development sources including MDBs. To agreement dashboards, setting-up service desk and Program overcome this huge financing gap, the Addis Ababa conference Delivery Units within IsDB Governor’s Office to expedite on financing for development (F4D) has already underscored the implementation of IsDB programs and operations, and importance of private sector in mobilizing financial resources conducting client perception surveys); and in aligning the global financing flows towards achieving the 4) Enabling Group synergy on decentralization initiatives through SDGs. In this regard, the ECOSOC forum on F4D convenes annually the taskforce on field presence and decentralization. to take stock of the progress made towards implementing the Addis Agenda. IsDB is coming to terms with this new reality by In order to monitor the progress on decentralization initiatives in a undergoing an institutional paradigm shift that will transform transparent and objective manner, a program monitoring dashboard the Bank from just merely providing resources to also mobilizing has been developed that tracks the progress on initiatives within all resources by crowding-in the public and private sector players in its four tracks and is updated on a weekly basis. It is pertinent to note development interventions. To actively engage the private sector, that execution of decentralization did not happen organically in IsDB the Bank besides introducing a new staff incentive structure and unlike the other MDBs where several decentralization approaches cultivating a new risk culture based on alternative development were tried and tested over several years. Therefore, these data- financing, is also implementing an ambitious decentralization driven online monitoring and tracking tools are necessary to exercise that delegates the responsibility to 11 empowered perpetuate evidence-based decision making and timely corrective Regional Hubs for shepherding the project lifecycle from value actions on decentralization initiatives by Bank’s Management. chain-based country programming to project implementation. Furthermore, they allow the Bank to objectively assess the scope of In a decentralized structure, by positioning the Bank closer to its both geographic and functional decentralization in terms of costs public-sector clients and the private-sector partners in Member and efficiencies as well as in terms of qualitative feedback from Countries, it is envisaged that some of the most entrenched staff and clients in Member Countries. operational challenges will be addressed i.e. crowding-in private The corporate execution of the whole decentralization initiative sector players upfront to improve quality-at-entry and readiness comes down to just how effective is the collaboration between of projects and during project implementation to expedite delivery. Regional Hubs and key operational and support Departments To facilitate these institutional objectives, a comprehensive in HQ. At the nexus of this collaboration is a dedicated team of decentralization action plan was developed and is anchored on four decentralization partners for each decentralization track whose tracks: main purpose is to ensure that this collaboration is executed in a 1) Enabling geographic decentralization by Improving the smooth and structured manner in line with the decentralization enabling environment in existing Hubs and through gradual action plan. operationalization of new Regional Hubs, Centers of Excellence Ultimately, it all boils down to whether through decentralization the and Field Representatives (i.e. Signing of host country Bank can achieve three key operational objectives. First, to crowd-in agreements, upgrading physical and IT infrastructure, relocation the public and private sector players in mobilizing resources for and on-boarding of staff, enhancing the safety, security projects, second to improve quality-at-entry of projects by actively and medical architecture for field staff, improving internal engaging the private sector players in project development and, communication through online service desk platforms and third to significantly reduce the project implementation period. conducting bi-annual staff feedback surveys); Achieving these key objectives in the medium term will directly 2) Enabling functional decentralization in operational and support contribute to supporting the Addis Agenda and SDGs including functions for Hubs through periodic Delegation of Authority for eradicating hunger and poverty, improving quality of basic and reviews and by developing business processes for operations social services, building resilient infrastructure, promoting inclusive and first-level support structures for Hubs that are aligned with and sustainable industrialization and fostering innovation and the new business model of the Bank; addressing climate change-related issues.

SHAWWAL 1440H - JULY 2019 23 Country Perspective A NEW ERA OF FUNDING TO BOLSTER MC’S DEVELOPMENT AMBITIONS A VOICE FROM IsDB a unique differentiated role in the demand in local societies characterized landscape of development partners by strong cultural communities’ ties to contribute alleviate the above two focused on Islamic values of shared THE FIELD SDGs challenges in LICs and (ii) engage prosperity and generosity for inclusive a new momentum for their inclusive growth and wellness of human being. development. The IsDB in collaboration with For that to happen, stakeholders believe Governments in RH Dakar constituency that IsDB should leverage its two-fold is now within the P5P hub program identity characteristics which are in the building the super structures of the same its main sources of strength: ecosystem that would incept a regional • a solidarity-based south-south Waqf Development Gateway at the institution which proximity to its MCs frontiers of innovation. This network/ enable her to understand their social Alliance will contribute to enhance and cultural dynamics to factor in collaboration between Government, civil Sidi Mohammad Taleb the design of its programs viable, society, private sector and community Director, DRO creative and productive capabilities across the region for financing SDGs for Empowerment at the local level through Waqf. for the sake of realizing the SDGs. ur member countries (MCs) As a first step towards this objective, as are strongly committed to the • Its Islamic business model, nowadays a first stage, drafting and ratification of OSDGs and their development the fastest growing segments of specific national laws on Waqf before programs are very much inspired by their International finance, which embeds the end of the year is going on through a objectives. However, all stakeholders in its product offering powerful reverse linkage program to transfer the believe that success will be largely specific instruments for social Senegalese expertise and experience contingent on the availability of resources finance (Zakat, Waqf etc,,) that may to Guinea, Guinea Bissau, The Gambia specially to Low-Income countries (LICs). add up products for delivering the and Mali (also Niger which is outside the The Financing Gap is huge, and this is SDGs. This opens up a wide range of constituency). particularly so for the underserved and opportunities. underfunded social development. Among the social finance Islamic Mainstreaming the above program in our New innovative and adapted alternatives instruments, stakeholders believe field work and programs would be a pillar resources are therefore of paramount that the Waqf vehicle may mobilize of our identity comparative advantage importance. However, resources alone significant additional domestic and and provide a unique positioning of would not contribute efficiently towards foreign resources However, to unleash our Institution for sustainable social SDG unless coupled with transformative this potential. enabling environments development and SDGs. solutions for development as MCs are key. In addition, innovative solutions- The IsDB by doing so will e a catalyst believe that traditional development based applications for SDGs adapted for large scale mobilization for the business models have shown their limits to the contemporary developmental underserved social investments, to accelerate the pace of development. arena in the MCs to thrive shall be operating at a new frontier of waqf in a To relieve the above constraints, our guided by indigenous national thinking contemporary new space strengthening stakeholders believe that among the and home-grown tools geared towards PPPs with the 4th P of philanthropy. overarching objectives of the P5P the transformation through transfer of This 4P collaboration will definitely strong message to position the IsDB at” technologies, packages to tap for synergize and integrate complementary the frontier of development”t through instance the potential of value chains. of intervention for co-creativity, better innovation and transformation may These new avenues will build on the interfaces and solutions leaning on STIs open up an new avenue to (i) forge for strong political will, the high social to address the challenges of SDGs.

24 ISSUE NO.8 WEST AFRICA: THE ROAD TO SUSTAINABLE DEVELOPMENT GOALS (SDGs)

countries adopted and implemented Salah Mansour several economic strategies and policies Director, CRS MENA & Europe during the last two decades. These strategies and policies followed the 80s’ liberal way favouring the attraction of fter the Millennium Development direct foreign investment (DFI) to exploit Goals, the international community natural resources especially mines, Aadopted in 2015 the 17 SDGs while in the mid-90s, they put combating along with the 169 targets as a reference poverty at the centre of their interest. framework to fight poverty and ensure a fair transition towards sustainable However, none of these policies and development. strategies gave enough importance to the creation of added value, and This is a major challenge for west African economic activity remained based on countries as the impact of poverty in this raw material export. The weak added sub-region is amid the highest in the value created under these economic world. the total unemployment rate. The high models is the main cause of the very According to the UN, the west African demographic growth level (3%) further modest level of job creation and the sub-region refers to the countries that complicates the already critical situation low level of revenue of most of the constitute the Economic Community of of unemployment. population translated by widespread West African States (ECOWAS): Benin, With regards to education, laudable poverty. Furthermore, they all practically Burkina Faso, Cabo Verde, Côte d’Ivoire, results were achieved in terms of neglected agriculture despite its potential Gambia, Ghana, Guinea, Guinea-Bissau, primary (more than 40%) and secondary in terms of job creation, combating Liberia, Mali, Niger, Senegal, Sierra Leone school attendance. However, there is a poverty and economic integration. and Togo. significant dropout rate, which is revealed Considering the above, and as an by the wide gap between primary and During the last two decades, economic answer to the second question, SDGs growth in this sub-region witnessed a secondary school attendance. must favour a growth which integrates favourable trend namely due to relative As far as basic infrastructure is productive sectors wherein the youth, political stability, high global demand concerned, a severe lack persists namely women and marginalised and vulnerable on west African export products and in the energy, water and sanitation people participate, namely agriculture. better macroeconomic management. and transport sectors. This situation SDGs should also support job creating Despite this performance, it is obvious undermines the populations, by depriving sectors; promote industrialisation and that a substantial part of the sub-region’s them of basic services, as well as the creation of added value by favouring population still lives in a poverty which investment which requires a critical the development of the private sector, tends to be endemic. level of infrastructure needed to develop strengthen the ties between the primary The available socio-economic indicators economic activity. and the secondary sectors through on the region unequivocally show the As regards to governance, only Senegal agro-industrialisation and value chains graveness of the current situation and and Cap Verde are among the top ten of development; and ensure a decent life for provide a clear idea on the long road to the 2018 ranking of the Mo Ibrahim Index the population by giving them access to SDGs for these countries. As a matter on good governance in Africa. quality basic services. of fact, all west African countries have a poverty rate higher than 40% except Given the above, one may ask two All these measures must be taken while Côte d’Ivoire, Cap Verde, Togo, Ghana questions: why does west Africa lag considering environmental aspects and Senegal. Although most Countries behind in terms of economic and social so that the targeted development be managed to keep the unemployment development? And what is the answer of tenable and sustainable. Preserving the rate below 8% during the last two SDGs to this situation? environment is a common cause for all decades, youth unemployment reached Regarding the first question, it would countries, developed and developing worrisome levels much higher than be relevant to stress that west African ones: “We are all on the same boat!”.

SHAWWAL 1440H - JULY 2019 25 Country Perspective THE GREATEST CHALLENGE TO ACHIEVE SDG4: PAKISTAN AS AN EXAMPLE

The most difficult SDG to achieve is SDG4 “Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all”, particularly meeting the Mohamed Abida first outcome target 4.1 Manager, Executive Management Support and Protocol Division, Office of the aiming to ensure that all President girls and boys by 2030 complete free, equitable and quality primary and chieving the 17 Sustainable reaching universal pre-primary, primary secondary education Development Goals (SDGs) by and secondary quality education in low leading to relevant A2030 is a major challenge for and lower middle income countries and effective learning the majority of our Member Countries is estimated at USD 39 billion. The considering the enormous social financing gap is a concern for the outcomes. and economic difficulties they are achievement of all SDGs, but it is more facing, including persistent budget acute for SDG4. Unlike investment of extremism, terrorism and human deficits, increasing debts and negative in other sectors like infrastructure, trafficking. consequences of natural disasters, agriculture or even public health, conflicts and extreme poverty. In my investment in Education, especially the This pressing issue was discussed view, the most difficult SDG to achieve primary stage, is a long-term investment in various meetings between IsDB is SDG4 “Ensure inclusive and equitable where returns are only visible after Group and the highest authorities in quality education and promote lifelong many years and sometimes after many Pakistan, namely, the Prime Minister, the learning opportunities for all”, particularly generations. A clear example of this President and the Minister of Education meeting the first outcome target 4.1 challenge is the case of Pakistan which and Vocational Training. There is a aiming to ensure that all girls and boys has great potential for economic growth clear commitment expressed by the by 2030 complete free, equitable and thanks to its strategic geographic Government to address this issue. IsDB quality primary and secondary education location, its important natural resources has also offered to leverage its resources leading to relevant and effective learning and most importantly its human capital. and core competencies to support outcomes. Pakistan has a number of renewed education sector through an ISFD universities and research centers, and Program, launched in 2017 in partnership According to UNESCO, the annual has also talented, vibrant and innovative with Education Above All Foundation, financing gap over 2015-2030 for youths. aiming to advocate educating out-of- Yet, despite the huge potential, Pakistan school children in selected Member is facing tough challenges, particularly Countries, including Pakistan. with regards to social sectors, namely, I believe the issue of out-of-school education and health. A clear indication children in Pakistan as access to of these problems is the “shocking” figure inclusive and equitable quality education of 22.84 million out-of-school children is crucial for the achievement of in Pakistan. This figure is alarming, and sustainable development and is a source represents a major concern, not only of innovation to meet the demand of for SDG4, but also for many other SDGs new markets. This requires substantive especially SDG1: No Poverty and SD8: long-term strategic investment with a Decent Work and Economic Growth. high-level political will from policy and In 2030, the majority of current out-of- decision makers, underpinned by intense school children will be entering the job involvement and participation from market without skills and will most likely private sector and civil society, as well be exposed to poverty, unemployment, as substantial support from Donors and low-wage jobs in addition to the risk Development Finance Institutions.

26 ISSUE NO.8 THE AFRICAN ALLIANCE FOR VOCATIONAL TRAINING WITH MOROCCAN EXPERTISE: SUPPORTING SDGs 4 AND 8 other countries through internships and best practices in the field of vocational apprenticeships so that Technical and training; (ii) share experiences and know- Vocational Education and Training (TVET) how acquired by the different partners; lagging behind in most of our member and (iii) develop and promote vocational countries can catch up and adapt to training interventions. rapidly changing environment. The Alliance contributes to improving There is, however, another way to access and quality to vocational help those countries tap into diverse education and technical training for the experiences and acquire solutions to employability of youth and enhanced Moncef Soudani their pressing development challenges sustainability and competitiveness of Regional Coordinator, faced by youth population. Some of the newly established enterprises. It also MENA & Europe, Reverse Linkage Division IsDB member countries, like Morocco contributes to enhancing the institutional which have become leaders in developing framework of the vocational training comprehensive vocational training systems in those countries. programs and curricula based on a The Bank has, so far, supported the he growing youth population market-demand driven approach, can formulation and financing of a US$ 48 with the limited employment support many countries which may lack million TVET project in Cote d’Ivoire opportunities in IsDB member the necessary ecosystems for TVET to be T effective. The IsDB is now working with based on the Moroccan expertise countries calls for new skills to through Reverse Linkage and is also enhance their prospects for productive Morocco, through the recently launched developing a new intervention for Guinea employment and economic growth “African Alliance for Vocational Training” Bissau. Additional interventions for the in their rapidly changing social and to support fourteen sub-Saharan rest of the beneficiary countries will be economic environment. African countries with the much-needed technical expertise, knowledge and skills developed on a demand-driven approach. Among the various issues that fuel through the Bank’s Reverse Linkage This Alliance falls within the Bank new unemployment in our member countries mechanism, thereby employing South- business model of being “A Bank of is the disconnect between the demand South and Triangular Cooperation Development and a Bank of Developers”. for changing job skills required by the (SSTrC) as a key mechanism to solve The program allows the Bank to be a key market and the supply of skills shifts SDGs 4 and 8. facilitator of development, by sharing imparted through existing education the expertise available in Morocco to systems. In this respect, some of the Under this alliance, the Moroccan Office of Vocational Training and Labor respond to pressing development needs IsDB member countries are lacking Promotion (OFPTT) is acting as the - in fourteen member countries through the ability to respond to new changing provider of expertise to many Sub- one comprehensive program that is circumstances and to produce jobs skills Saharan African countries including underpinned by SSTrC. The Alliance also that are increasingly in demand. Benin, Burkina Faso, Cameron, Chad, strengthens solidarity-based cooperation To reverse such trajectory, there is a need Cote d’Ivoire, Djibouti, Gabon, Guinea among the member countries and allows of enhanced investment in, among others, Bissau, Guinea Conakry, Mali, Mauritania, them to work together to solve common the transfer of know-how, practical Niger, Senegal and Togo. The objectives development challenges, in line with SDG skills and exposure to the experience of of this Alliance are to: (i) exchange 17—partnerships for the goals.

SHAWWAL 1440H - JULY 2019 27 Country Perspective RELEVANCE OF HEALTH IMPACT ASSESSMENTS IN ACHIEVING SDG 3 AND RELATED SDGs; A REFLECTION ON THE ROLE OF SHARIA’H COMPLIANCE

ealth is centrally positioned within health. Taking this further, WHO has the SDGs, as SDG 3 – which is to advocated Health in all policies (HiAP) as H“Ensure healthy lives and promote a collaborative strategy that integrates well-being for all ages”. However, and articulates health considerations into achieving this goal means more than just policymaking across sectors to improve improving health care1 . It involves action the health of all people. HiAP recognizes in key economic development sectors, that health is created by a multitude of like housing and transport, as well as in factors beyond healthcare and, in many the settings where people live and work cases, beyond the scope of traditional in cities and rural areas. public health activities. For development Ima Arit Kashim to capitalise on opportunities to improve The long-term goal of any development Global Health Specialist health in other traditional sectors as well project or agenda is to achieve social as effectively manage any risks to health; and economic inclusion and prosperity. it will require knowledge about both the type of health impacts that may occur and the distribution of those impacts on the affected community during implementation of the development project. This challenge can be overcome by the routine conduct of Health Impact Assessment (HIA) during the project design and preparation phase. HIA is an internationally recognized process (combination of procedures, methods, and tools to assess the potential health impacts) that provides a systematic approach to address the potential health costs and benefits of projects, plans or policies. HIA is applicable across industrial sectors (such as agribusiness, infrastructure, extractive industries). Thus, the conduct of a HIA on all projects to be financed by IsDB will ascertain the This mantra mirrors the IsDB’s mandate attainment of project implementation as embodied in the Mission statement standards that meet the stringent The long-term goal of the Bank and its Sharia’h compliant financial screening criteria of Shariah of any development financing nature for development. For compliant funds by making sure ‘no project or agenda is everyone to have a fair opportunity to harm’ is intended or actioned during the attain his or her full health opportunity, bank’s financing. It will also ascertain to achieve social and and no one disadvantaged from this cross sectoral collaboration to achieve economic inclusion potential; ensuring inclusion, access a common outcome, better stakeholder and prosperity. This and equity in receiving health services engagement, partnerships and project mantra mirrors the is paramount. These clear moral and sustainability. ethical dimensions are in consonance Far reaching results will directly IsDB’s mandate as with the Shariah. embodied in the impact on: Achieving Affordable and In 2003, the WHO Director General Lee Clean Energy, (SDG 7) Decent Work Mission statement Jong-wook on the concept of Health and Economic Growth (SDG 8) and of the Bank and its for All as an organizing principle; stated Sustainable Cities and Communities Sharia’h compliant that everybody needs and is entitled (SDG 11), Clean Water and Sanitation financing nature for to the highest possible standard of (SDG 6) and Climate action (SDG 13) development. and significantly reduce disease threats 1 https://www.who.int/sustainable-development/ including heart and lung diseases, sdg-briefs/en/ cancers, stroke, injuries.

28 ISSUE NO.8 SENEGAL URBAN SECTOR PORTFOLIO REVIEW SHOWS A CONFLUENCE OF SDGs!

urbanizing region. Urban areas currently contain 472 million people and will double over the next 25 years. The global share of African urban residents is projected to grow from 11.3 percent in 2010 to 20.2 percent by 2050. SSA’s 143 cities generate a combined $0.5 trillion, totaling 50 percent of the region’s gross domestic product (CSIS, April 2018). Papa Abdoulaye SY Results of the Urban Sector Portfolio Global Lead Urban Development Review Social Infrastructure Global Practice The strategic assessment of Senegal Urban Portfolio showed that: (i) it is highly likely that when all these he Islamic Development Bank’s orientations of the PSE are based on three projects will be completed, they Regional Hub of Dakar, in Senegal, pillars: will, proportionally to their size is currently implementing the T (i) structural transformation of the and impacts, contribute to the Bank biggest Urban Sector Portfolio economy and growth; in the Sub-Sahara African region. The achievement of the SDGs 6, 11 and 13. (ii) human capital, social protection and first two completed housing projects (ii) the overall objectives of all these sustainable development and; were implemented in this Hub and the projects are in line with the Pillar 2 biggest ongoing urban infrastructure (iii) governance, peace and security. of the PSE (which is the strategic project is taking place in this Hub too. Review of the Urban Portfolio in Senegal development model adopted by the Subsequently, in December 2018 the Government of Senegal to achieve Social Infrastructure Global Practice (SI- Senegal urban portfolio is dominated by emergence by 2035) and with the the water sub-sector (37% with Dakar GP) decided to carry out a Sector Portfolio Agenda 2063 of the African Union. Performance Review (SPPR) for the urban Water Supply Expansion project, KMS3), (iii) It is noted that despite the fact the projects in Senegal. The SPPR exercise followed by the urban infrastructure sub- portfolio is dominated by water and shows a confluence of SDGs 6, 11 and sector (33% with the Secondary Cities 13 and an alignment of these goals with Modernization Program, Promovilles), sanitation projects (covering SDG6), the country main strategic document PSE by the sanitation sub-sector (15.5%), the SDG 11, which is dedicated to (Emerging Senegal Plan). the housing sub-sector (8.5%) and the urban development, is noticeably solid waste sub-sector (6%). In total, present in 3 out 6 projects and finally; The “Plan Senegal Emergent” (PSE) water and sanitation projects represent (iv) the current portfolio covers not just Since 2014, the Government of 52.5% of the urban portfolio. This trend is the capital city Dakar, as it may be Senegal has been implementing a new demonstrated not just for Senegal but for expected, but many other regions development model, the Emerging the whole regional hub urban portfolio. including Thies, Saint Louis, Kaolack, Senegal Plan (PSE), which constitutes Urban Infrastructure and Services are Fatick, Matam, Tambacounda, the reference for economic and social one of the most predominant needs Diourbel, and several other big policy, to achieve strong, sustainable and of our MCs in correlation with a rapid agglomerations like Touba, and Mbour. inclusive growth, eradicate poverty and urbanization and a sustain demographic (v) Lastly, it is worth mentioning the achieve sustainable human development growth. Sub-Saharan Africa (SSA) is by the horizon of 2035. The strategic confluence of SDGs 6, 11 and 13 since often regarded as the world's fastest Target 1 of SDG 13 is being reached with the following two projects: Floods Impacts Mitigation and Secondary Cities Modernization; Target 6 of SDG 11 is being achieved with the Municipal Solid Waste Management and the Flood Impacts Mitigation Projects and finally Targets 1, 2, and 3 of SDG 6 are being attained through different projects: Northern Dakar Sanitation Improvement, Dakar Water Supply Expansion, Secondary Cities Modernization and the IsDB-WAEMU water supply and sanitation projects.

SHAWWAL 1440H - JULY 2019 29 Country Perspective PALM OIL ISSUE IN INDONESIA: PROMOTING ECONOMIC GROWTH OR COMMITMENT TO ACHIEVING THE SDGs

Ali Fallahi Country Economist, Regional Hub Indonesia/ CSMI

n April 28, 2019 and during Importance of palm oil in the economy and the global market closely observes the “Leaders Roundtable Belt of Indonesia Indonesia’s palm oil market. and Road Forum (BRF II) for O Indonesia is today the behemoth in Palm oil has been a key factor in reducing International Cooperation” in Beijing, the palm oil sector as the world’s top rural poverty in top producing countries Indonesia Vice President, “Yusuf Kalla”, producer and exporter, outstripping like Indonesia. The opening of palm oil asked a number of countries to stop Malaysia, which previously held the plantations in rural and remote areas has their discriminatory treatment to the lead. According to Indonesian Palm Oil helped lift the incomes of populations Palm Oil industry, under the pretext of Association (Gapki), about 50 million there. About 40 percent of plantation environmental conservation, arguing Indonesians depend in their everyday areas in Indonesia are owned by some that it should be put to an end because it lives on palm oil and its derivatives, be it two million smallholders, and a report hampers the country's ability to achieve directly or indirectly, through multiplier by the European Commission estimated the Sustainable Development Goals effects the sector has created. that these smallholders earn up to ten (SDGs). He said around 16 million people Palm oil is a strategic commodity for times more than other farmers. were involved in the palm oil industry, as Indonesia’s economic development. Data from the Investment Coordinating farmers or smallholders, meaning the The value of Indonesia’ palm oil foreign Board (BKPM) shows that the industry industry made a significant contribution exchange revenues contribution in 2018 employs 5.9 million people via direct to Indonesia’s ability to achieve the UN’s is estimated to reach $20.54 billion. As employment and up to 50 million in SDGs. the largest palm oil producer in the world, non-direct employment. Bearing in Indonesia plays a very significant role mind that this sector stimulates rural Paradoxically, Palm oil industry can be considered positive and negative for implementing SDGs. In other words, it can be an important factor in poverty alleviation and economic growth of Indonesia and on the other hand, it is viewed as a hindrance to the implementation of SDGs. So, here one can raise this question: What should be done if the government of Indonesia wants to remain committed to the implementation of SDGs? Prior to responding this question, we’d better look at the positive and negative aspects of Palm oil industry in the economy of Indonesia and implementing SDGs in this country.

30 ISSUE NO.8 Indonesia is today the behemoth in the palm oil sector as the world’s top producer and exporter, outstripping Malaysia, which previously held the lead. According to Indonesian Palm Oil Association (Gapki), about 50 million Indonesians depend in their everyday lives on palm oil and According to the Coordinating Economic and peat land since 2015, an area almost its derivatives, be it Minister, palm oil farming allowed twice the size of Singapore”. directly or indirectly, a huge number of smallholders to Indonesiahas faced negative campaigns escape poverty and as such way key to against the commodity, especially from through multiplier Indonesia’s ability to achieve the SDGs. EU member countries as a second major effects the sector has Palm Oil Challenges for the importer after India. The European Union implementation of SDGs has accused the palm oil sector of being created. environmentally unsustainable in the long However, the persistent oil palm run, The latest move the EU has taken to expansion is associated with discredit palm oil was through a delegated areas, we can see its direct multiplier environmental problems. The industry act that , if passed by the EU Parliament , effects. Whenever there is fluctuation has come under scrutiny in recent years would ban palm oil in the region for good in the prices of commodities, especially from green activists and consumers, who by 2030. palm oil, nearly all the nation’s economy have blamed it for forest loss and fires, will be impacted. In Astra group’s case, as well as exploitation of workers. Palm oil is classified as a “high- whenever the price of palm oil is down, risk commodity and harmful” to the Indonesia is the world's biggest producer sales of Honda motorcycles will also fall. environment in regard to deforestation of palm oil and every year smoke from within the delegated Regulation By boosting socio-economic fires used to clear land for agricultural Supplementing Directive 2018/2001, development, palm oil has also helped to expansion clouds the skies over large which resulted in palm oil-based fuels reduce inequalities between urban and parts of Southeast Asia, raising concerns being the only commodity dropped rural populations. It has provided rural about public health. A recent Greenpeace from the EU's list of renewable energy. If populations better access to healthcare report claimed that 25 major palm oil ratified and implemented, “the EU’s plan and education, helping to further ensure producers supplying the world's largest would affect the lives of around 20 million that they and their children have a better brands were "known to have destroyed farmers, both directly and indirectly. The quality of life and standard of living. more than 130,000 hectares of forest EU accounted for about 15 percent of Indonesia’s 2018 palm oil exports, valued at around US$19 billion, according to Indonesian Palm Oil Association data. Then the challenge, would be to find a new market for Palm Oil if Indonesia faces obstacles in the international market. Conclusion Considering the mutual concerns (EU & Government of Indonesia), it is evident that Unilateralism, protectionism or Me- First Policy will lead to nowhere land as it is a zero- sum game while multilateralism could be the best approach as a win-win game for the two sides. But whatever policy the EU takes, it should involve cooperation programs to empower Indonesia.

SHAWWAL 1440H - JULY 2019 31 Country Perspective SDG7: ENERGY SECTOR PORTFOLIO PERFORMANCE REVIEW: EGYPT AS AN EXAMPLE

five-year plans to phase out petroleum (oil and gas) and electricity subsidies. The plan entailed gradual price increases for the different subsidized fuel products and electricity. It is being reviewed for phasing out subsidies by 2022. This step is imperative for Egypt to transform the Electricity industry into a market-based competitive sector. Hussaain Mogaibel Bandar Alhoweish The energy sector portfolio includes 15 projects with a total amount of USD Global Lead Energy Specialist Senior Global Energy Specialist 1.99 billion, representing the highest Economic Infrastructure Division Economic Infrastructure Division portion in the Country portfolio (83.3%). In addition, the portfolio includes six Public Private Partnership projects with a total he energy Sector Portfolio amount of USD 80 million. Out of the Performance Review (SPPR) 15 projects under the public financing, is meant to review the energy T ten were already completed. The sector in the Country, assess the portfolio assessment highlighted various relevance of IsDB intervention in the recommendations and suggested actions sector, and provide recommendations plans for improving its performance. to improve the quality of the active portfolio, and propose the nature of IsDB involvement in the sector served IsDB future intervention. Egypt is one of meeting SDG7 targets in particular, the largest beneficiaries of the Islamic target 7.1 “ensure universal access Development Bank (IsDB) Group. The to affordable, reliable and modern total financing of IsDB Group for Egypt energy services by 2030” and target 7.2 reached about US$12.4 billion and the “increasing substantially the share of energy sector represents 79.4% (US$9.8 renewable energy in the global energy billion) including trade and private sector mix by 2030”. IsDB energy portfolio is finance. also in line with IsDB energy policy, the generation side. The total installed Government priorities and the Country 95% of Egypt’s energy requirements are capacity has increased by 79% from energy sector Strategy. Collectively, fulfilled by oil and natural gas. As with 30GW in mid-2012 to 55GW in mid-2018. IsDB’s project financings have resulted in Egypt’s status towards achieving the In 2014, the Government introduced adding generation capacity of 4GW and targets of Sustainable Development Goal 174 km of transmission and distribution (SDG.7) “ensure access to affordable, lines. The IsDB’s intervention in the reliable sustainable and modern energy As with Egypt’s status sector increased the reach of electricity for all”, the country has achieved to over half million people so far. Once the universal access to electricity (target towards achieving the active portfolio is completely delivered 7.1), 98% of the population has access targets of Sustainable and becomes operational, the number of to clean cooking, and renewable energy Development Goal people benefiting for IsDB’s intervention represents 6% of the total energy final (SDG.7) “ensure access will increase to around 22 million. consumption (target 7.2). As with Energy Efficiency achievement indicator (target to affordable, reliable 7.3), the country adopted its first National sustainable and modern Energy Efficiency Action Plan (NEEAP) in energy for all”, the country 2012, however, it is still below the global has achieved universal average. The Ministry of Energy and Renewable Energy (MoERE) has set a access to electricity (target reduction target of 8% in energy usage by 7.1), 98% of the population 2022, half of which will be in the industrial has access to clean sector. cooking, and renewable Although the energy sector has suffered energy represents 6% from high subsidies and wide supply of the total energy final deficit to fulfil the growing demand for electricity in recent years, the sector consumption (target 7.2). now has wide reserve margins in the

32 ISSUE NO.8 Review IsDB DEVELOPMENT EFFECTIVENESS REPORT (DER) 2018

The DER encapsulates initiatives undertaken by the Bank in implementing its strategic agenda of supporting inclusive development, promoting regional cooperation and integration, encouraging Islamic Finance growth globally, and building partnerships for resource mobilization to support the achievement of SDGs Amir Ghani Meer Manager, Operations Quality & Results

he DER 2018 provides an overview on macro-economic performance Tof member countries (MCs), with highlight on some of the major forces shaping change in global development landscape and development status of our MCs. It highlights great uncertainty arising from the growing specter of protectionism and global economic slowdown and the enormous change in the landscape within which the development of our MCs is taking place. It is asserted that number of our MCs have crossed the middle-income threshold, while many of Sub-Saharan economic recovery is still sluggish, continue to suffer from fragility and its spillover African MCs experiences increasing effects. The Bank is fast adjusting to the rapidly changing world and circumstances concentration of poverty, resulting in facing its MCs in a bid to contribute effectively to the achievement of the SDGs. constraints in meeting basic human needs. Some MCs, especially in the The DER encapsulates initiatives undertaken by the Bank in implementing its strategic MENA region where the pace of the agenda of supporting inclusive development, promoting regional cooperation and integration, encouraging Islamic Finance growth globally, and building partnerships for resource mobilization to support the achievement of SDGs. It also shares comprehensive efforts undertaken to address women and youth related issues, address fragility and build resilience, support climate friendly development and further enhance technical cooperation and reverse linkage programs. Other activities include improving scholarship program, advancing the development of Muslim communities in non-member countries (NMCs) through Communities Outreach Program, encouraging science, technology and innovation as a key enabler in realizing sustainable development and enhancing engagements with the NGOs and the Civil Society. Furthermore, the report sheds light on progress towards achieving key objectives of the President’s Five-Year Program (P5P) and the aspirations of IsDB Group’s 10- Year Strategy (10YS) for MCs’ socio-economic development. It presents evidence of IsDB’s profound commitment to supporting the achievement of SDGs. It has emphasized that the Bank’s support extended in 2018 will contribute to significant development results in our MCs. The results of projects completed in 2018 have also made difference by contributing to socioeconomic development across MCs. Report also highlights areas for improving operational effectiveness and organizational efficiency of the Bank to enable it to better deliver products and services to MCs and NMCs in addition to being responsiveness to client needs.

SHAWWAL 1440H - JULY 2019 33 News

Annual Meeting Highlights JEFFREY SACHS URGES IsDB TO SCALE-UP FUNDING FOR LEAST DEVELOPED MEMBER COUNTRIES

enowned economist and UN Secretary General’s Advocate on SDGs, Professor RJeffrey Sachs has called on the Islamic Development Bank (IsDB) to scale-up funding for low-income member countries to achieve SDGs. Professor Sachs spoke via video message during a side event on Voluntary National Reviews (VNRs) in achieving SDGs during the 44th Annual Meeting of IsDB Group in Marrakech, Morocco. “IsDB can play a critical role in ending extreme poverty in OIC countries. Most of IsDB member

countries are in fragile regions of the world and Jeffrey Sachs (inset) speaking via video message during the side event on VNRs in Marrakech climate change is threatening these countries. SDG 13, 14 and 15 calls for considering environment they incorporated the SDGs in their national and sub-national development as essential factor for human development,” says plans. Professor Sachs. The panel discussion on the VNRs moderated by IsDB’s Special Envoy on In his remarks, IsDB President, Dr. Bandar Hajjar SDGs, Dr. Rami Ahmad had high level panelists such as Niger’s minister stated that 30 IsDB member countries have of national planning, Madame Aichatou Kane, Hala Helmy El-Said, Egypt’s submitted their VNRs where they outlined the National Planning Minister, Dr. Ishrat Hussain, World Bank’s Senior Vice progress made in achieving the SDGs, and how President Mahmoud Mohieldin, and Morocco’s Aziz Rabah. TOP GLOBAL EXPERTS ON FOOD SECURITY CALL FOR URGENT MEASURES TO END HUNGER Commenting on the effort of governments to ensure food security, the Director General of International Centre for Agricultural Research in the Dry Lands (ICARDA), Aly Abousabaa stated that there is strong political will from countries like Nigeria to invest in agriculture and his organization is working to come-up with super-maturing varieties.

The IsDB Special Envoy on SDGs and moderator of the side event, Dr. Rami Ahmad added that the core issue is to end hunger. He cited the saying of Prophet Muhammad (pbuh) that he is not a believer who sleeps filled, while his neighbor is hungry. Dr. Rami Ahmad further asked why should 2 billion people suffer from obesity while 800 million suffer from hunger? eading global experts on agriculture and food security have called on the global community to take urgent measures aimed at ending hunger. The For Mohammad Jamal Al-Saati, Director of the Office Lexperts made the call in Marrakech during the side event on the role of of IsDB President, money is not enough to address agricultural value-chain to achieve SDGs at the 44th Annual Meeting of IsDB the challenges of food security, he then cited the Group. example of some of the success stories of IsDB such “To end hunger, we need the whole ecosystem, the private sector, affordable as the Reverse Linkage project between Malaysia and technology and make it available to small holder farmers,“ says Gilbert F. Suriname on boosting rice production. Houngbo, President of International Food and Agricultural Development (IFAD). The Director of Agriculture and Acting DG Global In her remarks, the Director General of International Centre for Biosaline Practice at IsDB, Thierno Diallo thanked the participants Agriculture, (ICBA), Dr. Ismahane Elouafi stated that the farmers that remain for honoring the invitation of IsDB and further explained poor are the small-holder farmers that remain in non-arable lands, and they are the effort of the Bank in implementing rice value-chain poor partly because they are not given the right crops. projects in member countries.

34 ISSUE NO.8 Events

How can VNRs shape the road towards achieving the SDGs?”, (AM) 5 April 2019

Role of Climate Action in Achieving the SDGs, (AM) 5 April 2019

SHAWWAL 1440H - JULY 2019 35 Events

8th Youth Development Forum (2019), Marrakesh, (AM) Morocco, 4 April 2019

Fostering Sustainable Agricultural Value Chains in IsDB Member Countries, Marrakesh, (AM) Morocco, 6 April 2019

Spotlight: "Leadership on the Line" (Book Review session at IsDB Group Library) 21 May 2019

Visit of the UN Deputy Scretary-General, Ms. Amina Mohammed to the IsDB Headquaters, 30 June 2019

IsDB Group SDGs Community of Practice Cordially invites you

Followed by An Open dialogue among IsDB staff and Management on mainstreaming SDG 9 & 8 within IsDB activities

ISSUE NO.8