In July 2015, heads of state, finance ministers, foreign ministers, and ministers for development cooperation will gather in Addis Ababa, Ethiopia for the third United Nations International Conference on Financing for Development. The Addis Conference seeks to identify funds to support the post-2015 Sustainable Development Goals (SDGs). This conference will be fundamentally different from earlier FfD conferences held in Monterrey in 2002 and Doha in 2008. In 1980 low and middle income countries received $32 billion of ODA and $7.6 billion of FDI, but by 2013 those countries received $133 billion of ODA and $735 billion of FDI. As global incomes rise, emerging donors have taken on a much greater role in development. Developing countries’ themselves have gained a greater ability to finance their own development as private sector economic activity in the developing world continues to grow. Below we have outlined some of the ways development finance has changed to respond to a new set of challenges and development realities.
The UN will host the third Financing for Development Conference this July in Addis Ababa, Ethiopia.
A New Role for Traditional Donors
While ODA and traditional development financing remain important catalysts for development, donors that were once the main sources of financing for developing countries increasingly find themselves playing a complementary rather than unilateral role. Private financial flows have increased rapidly and ODA and public funding for donor organizations have increased at a more limited rate. As a result, traditional donors are finding new ways to leverage their funds to create maximum impact, often through encouraging private sector growth. Continue reading
“What we are hearing from host countries is that we want trade not aid. We want to work with the private sector.” –Leocadia Zak, Director of USTDA (CSIS, June 30, 2014)
Director Zak at CSIS’ Chevron Forum on Global Infrastructure Development
Who is she?
Leocadia I. Zak was appointed by President Obama and confirmed by the U.S. Senate as the Director of the U.S. Trade and Development Agency (USTDA) on March 10, 2010.
As Director of USTDA, Ms. Zak focuses on expanding U.S. jobs and the markets for U.S. goods and services abroad by supporting U.S. businesses in emerging markets. Some of these targeted approaches include inviting foreign officials to the U.S. for reverse trade missions and offering best-practice training programs.
Ms. Zak has substantial experience in the public and private sector. Prior to joining USTDA, she was a partner in the Washington and Boston offices of Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo, P.C. and an Adjunct Professor of Law at the Boston University School of Law, Moring Center for Banking and Financial Law Studies, and at the Georgetown University Law Center. Ms. Zak received her B.A. from Mount Holyoke College and her J.D. from Northeastern University School of Law. Continue reading
This week in development…
- With the first-of-its-kind Africa Leaders’ Summit fast approaching, CSIS released Africa in the Wider World, a collection of essays by CSIS experts on the issues and trends central to the Summit, including trade, security, and governance.
- Following its 13th review session, the UN’s Open Working Group (OWG) released the final version of its proposed Post 2015 Sustainable Development Goals (SDGs) on July 19, which are expected to be presented to UN Member States in September 2014.
- The 17 SDGs include 169 specific statistical benchmarks, with emphasis on agriculture, health, education, gender equality, improved access to water and “modern” energy sources, economic opportunity, and sustainable development practices.
- On July 22, the United Kingdom’s DFID hosted the inaugural Girls Summit in London in cooperation with UNICEF. The summit hoped bring greater attention to issues of child, early, and forced marriage (CEFM) and female genital mutilation (FMG).
- Advocates and survivors, as well as representatives from the public and private sector, discussed ways to put an end to these practices.