Addis Ababa Action Agenda Monitoring commitments and actions Inaugural Report 2016 Inter-agency Task Force on Financing for Development asdf United Nations New York, 2016 Cover photo credits Left: UN Photo/John Isaac Top right: UN Photo/Pasqual Gorriz Middle right: UN Photo/Eva Fendiaspara Bottom right: UN Photo/Pasqual Gorriz United Nations publication Sales no. E.16.I.7 ISBN 978-92-1-101336-8 Copyright © United Nations, 2016 All rights reserved Foreword In 2015, world leaders made ambitious commitments to transform the global economy, bring new opportunities to billions of people, and leave a healthier planet for future gen- erations. Three critical milestones made the year 2015 a global landmark for sustainable development and international cooperation. First, the Addis Ababa Action Agenda provides a new global financing framework to mobilize and deliver the resources, technology and partnerships needed for sustainable development. Second, the 2030 Agenda for Sustainable Development presents a universal, inte- grated and transformative vision for a better world, including 17 Sustainable Develop- ment Goals. Third, the universal Paris Agreement on climate change marks a turning point in our response to one of the leading threats to stability and well-being. Implementation will be the test of our commitment. Accurate and comprehensive monitoring of actions at all levels will be crucial for success. The Inter-Agency Task Force on Financing for Development, which I convened at the end of 2015, will strengthen the follow-up process by reporting annually on progress in implementing the financing for development outcomes and the means of implementa- tion of the 2030 Agenda. This first report of the Task Force describes the comprehensive scope of the Addis Agenda, with high-level cross-cutting initiatives and additional concrete commitments across its seven action areas. It sets out the sources of data and evidence that will allow the Task Force to carry out its important work. Now is the time to transform our global vision into tangible actions that improve the lives of people everywhere. I urge all partners across the world to embrace the ambi- tion contained in the Addis Agenda and join forces towards its successful implementation. Preface The Addis Ababa Action Agenda encouraged the Secretary-General to convene an Inter- Agency Task Force to report annually on progress in implementing the Financing for Development outcomes and the means of implementation of the 2030 Sustainable Devel- opment Agenda. It specified that the Task Force will advise the intergovernmental follow- up on progress, including implementation gaps, and make recommendations for correc- tive action. In fulfilment of this mandate, the Secretary-General convened the Inter-Agency Task Force on Financing for Development in December 2015. The Task Force, which I have the great honour to chair, comprises over 50 United Nations agencies, programmes and offices and other relevant international institutions and entities. The major institu- tional stakeholders of the Financing for Development process, the World Bank Group, the International Monetary Fund, the World Trade Organization, the UN Conference on Trade and Development and the UN Development Programme are taking a central role, jointly with the Financing for Development Office of the UN Department of Economic and Social Affairs, which also serves as the coordinator of the Task Force and substantive editor of the report. The Task Force’s annual report will be analytical in nature, with a focus on moni- toring progress in implementing commitments in the Addis Agenda and the means of implementation of the Sustainable Development Goals (SDGs). This first edition of the report maps out these commitments, including the relationship between SDG means of implementation and the Addis Agenda. It also presents the full set of data sources that will allow for annual assessments of progress in implementation and that will provide the basis for evidence-based policy analysis, with a view to providing Member States with policy options and recommendations. Future editions of the Report will thus complement the statistical focus of the SDG Progress Report, which is mandated in the 2030 Agenda for Sustainable Development to annually assess progress in implementation of the 17 SDGs. We trust that the work of the Task Force will provide the evidence and analysis necessary to inform substantive and fruitful deliberations of Member States on Financing for Development. Wu Hongbo Under-Secretary-General for Economic and Social Affairs United Nations Chair of the Inter-agency Task Force Contents Foreword .............................................................. iii Preface ................................................................. v Introduction . 1 1. The evolving global situation ................................ 2 2. From Monterrey to Addis Ababa and the means of implementation for the SDGs: Monitoring Financing for Development outcomes .... 3 3. Task Force assistance to the Financing for Development follow-up .. 5 I . Cross-cutting issues . 9 1. Introduction ............................................ 9 2. Delivering social protection and essential public services .......... 9 3. Ending hunger and malnutrition ............................ 11 4. Closing the infrastructure gap ............................... 13 5. Promoting inclusive and sustainable industrialization ............. 18 6. Generating full and productive employment for all ............... 19 7. Protecting ecosystems ..................................... 20 8. Promoting peaceful and inclusive societies ..................... 23 9. Gender equality .......................................... 25 10. Investing in children and youth ............................. 28 11. Addressing the diverse needs and challenges faced by countries in special situations ......................................... 29 12. Global partnership ....................................... 30 II .A Domestic public resources . 33 1. Introduction ............................................ 33 2. Domestic resource mobilization and taxation ................... 34 3. Illicit financial flows ...................................... 36 4. Return of stolen assets ..................................... 39 5. International tax cooperation ............................... 39 6. Expenditure ............................................. 44 7. Additional topics ......................................... 46 viii Addis Ababa Action Agenda — Monitoring commitments and actions Page II .B Domestic and international private business and finance . 51 1. Introduction ............................................ 51 2. The investment climate .................................... 52 3. Private sector efforts and initiatives ........................... 54 4. Policies and regulatory frameworks to better align business and finance with global goals. 55 5. Achieving financial inclusion ............................... 57 6. Developing domestic capital markets ......................... 59 7. Facilitating the flow of remittances ........................... 61 8. Encouraging quality direct investment/foreign direct investment, particularly in underfunded sectors and countries ............... 64 9. Incentivizing investment in underfunded areas, including clean and affordable energy ..................................... 66 10. Encouraging philanthropic engagement that is transparent and accountable ............................................. 67 II C. International development cooperation . 69 1. Introduction ............................................ 69 2. Official development assistance .............................. 70 3. South-South and triangular cooperation ....................... 71 4. Multilateral development banks ............................. 73 5. Other official flows and catalysing additional resources ........... 74 6. Country allocation, levels of concessionality and graduation issues ... 76 7. Development effectiveness .................................. 77 8. Climate finance, disaster risk and environmental resilience ........ 80 9. Humanitarian finance and peacebuilding. 82 10. Innovative development finance ............................. 83 11. Additional partnerships .................................... 84 12. International cooperation and capacity building ................. 86 II .D International trade as an engine for development . 87 1. Introduction ............................................ 87 2. Strengthening the multilateral trading system. 89 3. Facilitating international trade .............................. 94 4. Promoting policy coherence in trade. 97 II .E Debt and debt sustainability . 103 1. Introduction ............................................ 103 2. Debt crisis prevention ..................................... 104 3. Debt crisis resolution. 108 Contents ix Page II .F Addressing systemic issues . 113 1. Introduction ............................................ 113 2. Strengthening global governance ............................ 113 3. Improving cooperation, coordination and policy coherence ........ 114 4. Enhancing global macroeconomic stability with sustainable development ............................................ 116 5. Shaping financial market regulation for sustainable development .... 119 6. Promoting safe migration .................................. 122 7. Combating transnational crime. 123 II G. Science, technology, innovation and capacity-building . 125 1. Introduction ...........................................