Last week’s UN Financing for Development Forum showed that blended finance – using aid money to mobilise finance from other sources, especially the private sector – continues to top the agenda for many of the big players in development finance. In Paris, the Organisation for Economic Cooperation and Development’s Development Assistance Committee (OECD DAC) will shortly decide on new aid rules that allow greater official support to the private sector, including blending, to be counted as ODA. Meanwhile in Brussels, the European Commission is currently in the process of negotiating with the European Parliament and the Council of Ministers over the regulation that will govern the new External Investment Plan.
In their recent blog about the use of fake residencies to avoid the OECD's Common Reporting Standard on automatic exchange of banking information, the Tax Justice Network (TJN) proposed that banks should ask extra questions if someone declares themselves to be resident in a tax haven offering residency or citizenship in exchange for money.
With its Compact with Africa, the German G20 presidency is actively promoting private loans and investment as solutions to infrastructure deficiencies on the African continent. The Compact aims at using public resources in order to improve the investment climate and mobilise private capital to finance investment critical to achieving sustainable development.
UN Financing for Development Forum (FfD): private sector eats cake while developing countries fight for crumbs
Last week’s UN FfD Forum in New York was notable for being the first major event to admit in a formal outcome document that at the current pace, the SDGs will not be achieved. A key reason is the lack of adequate funding for them. While there is no lack of ‘hot money’ inflating asset prices and speculative bubbles across the globe, there's a failure to transform that money into development finance, not least because governments are failing to reform the financial system.
A new report, published by a coalition of UK and African organisations including Eurodad members Global Justice Now and Jubilee Debt Campaign, makes a series of recommendations to tackle the one-way flow of wealth from Africa. The research covers the 47 countries classified as ‘sub-Saharan Africa’ by the World Bank and finds that much more wealth is leaving the world’s most impoverished continent than is entering it.
IN ACTION At the United Nations Financing for Development Forum in New York, Eurodad's Bodo Ellmers spoke on behalf of the Addis Ababa CSO Coordination Group concerning the failure to address debt crises.
EVENTS The European Development Days (EDD) take place in Brussels on June 7-8, and include a debate organised by Eurodad and ActionAid on "How can the EU ensure policy coherence for development to support developing countries in their fight against tax dodging?"
The Tax Justice Network annual conference will take place in London on July 5-6. The conference will discuss global tax justice at a crossroads, southern leadership and the challenges of Trump and Brexit. More information and registrations here.