The developing world requires billions of dollars in investment every year to help it climb the ladder to achieving the United Nations’ Sustainable Development Goals. Countries in the Global South need funding to build health, education, public infrastructure, skills and livelihoods in order to develop sustainably. In an exclusive interview Reshmi AR, Smita Jacob, Policy Director, Asian Venture Philanthropy Networkdescribes the challenges of equitable development and the role of global organizations in helping to make progress for the planet.
1. What should be the immediate priorities of the countries of the Global South, in order to be able to achieve the goals of the GBE?
Countries around the world, including those in the Global South, have committed to prioritizing progress for those who are lagging behind. Achieving the 2030 Agenda for Sustainable Development is a strong step in that direction. To ensure the same, it is crucial to identify the need for food security and energy transition as the need of the hour. In India too, the Government is taking concrete steps, including a shift to renewables and climate finance, and a generally encouraging push for public-private partnerships. They are obliged to build a momentum for sustainable change.
2. What are the G20’s plans to help developing countries acquire the necessary tools to advance sustainable development?
The G20 has always focused on low-income, developing countries and inclusiveness has consistently been the underlying theme of the Summit. At the Indonesia 2022 G20 event, it was reiterated that strong, sustainable and inclusive growth and a greater spirit of cooperation among the countries of the Global South must be continuously seen to address global challenges. In the coming years, as the mandate of the G20 Presidency passes to Indonesia, India, Brazil and South Africa in the South – a unique event in the history of the G20 Summit – the countries of the Global South will be able to continue to focus on the issues. Face the Global South. By taking the lead of the summit, countries now have an unquestionable platform to express their concerns.
As for the tools that sustainable development countries can use to advance sustainable development, one of them is to create or build a Financial Alliance working towards a climate-positive future. Contributing to the transition to a zero global economy, using the platform provided by the G20, should be seriously considered by all member countries – as the decarbonisation of the global economy will contribute to the full fulfillment of the SDGs. For example, the G20 Indonesian Presidency launched the Global Blended Finance Alliance, which will help improve financing mechanisms in developing countries and small island states to bridge the funding gap for SDG programs. Moreover, the creation of a new international financial architecture is crucial for achieving economic stability and sustainable growth on the table of the G7 nations.
Second, the G20 Impact Agenda is of utmost importance and must be pursued by member countries to address key issues such as gender inequality.
Finally, active participation in engagement groups including Business 20 (B20), Women 20 (W20) and Youth 20 (Y20) that cultivate a strong representation of specific interests, expertise and policy proposals in these areas can also help the Global South. be at the center of discussions on a sustainable and inclusive approach to sustainable development.
3. What is the extent of the development finance gap for emerging economies, especially post-Covid-19?
Post-pandemic, the projected US$1.7 trillion gap in 2020 adds to the US$2.5 trillion gap in annual funding for developing countries to achieve the 17 GHIs by 2030. developing
According to the OECD, although official development financing is an important countercyclical force in the short term and tax collections remain the only viable long-term source of financing for many public services, no single source of development financing can address this challenge alone. Development finance and private finance actors must work closely together to “build better” for a fairer, more sustainable and ultimately more resilient world.
Catalytic capital, in this context, can also be a useful tool; because it has the potential to bring together philanthropy, private investors and the public sector to address the impact funding gap, and to leverage the entire ecosystem to collaborate.
4. How is AVPN helping developing countries bridge the funding gap to achieve their development goals?
As the largest network of social investors in Asia Pacific, AVPN is committed to working strategically and proactively to rationalize capital to low- and middle-income countries in Asia. This large flow of impact capital achieved through catalytic and blended finance is then channeled towards achieving the SDG goals. AVPN and its partner organizations invest in economic empowerment in the Asia Pacific to drive change in critical areas, including the fight against climate change, sustainable technology and gender justice.
On November 12, at an official B20 side event designed to amplify the voices of the social investment community in the final run-up to the G20, AVPN announced the following commitments:
- The USD 25 million Joint Asia Gender Equality Fund, with the support of CHANEL Foundation, Bill and Melinda Gates Foundation, The Target Foundation and members of AVPN’s Asia Gender Network, will invest in women’s economic empowerment in the Asia Pacific region.
- The 3M USD Sustainability Seed Fund, with support from Google.org and the Asian Development Bank, was launched to address climate change and drive sustainability through technology in the Asia Pacific.
- Strategic partnership with the Global Blended Finance Alliance to catalyze the growth of blended finance in Asia.
- The launch of a gender-focused MSME TaskForce, supported by the Visa Foundation, will provide recommendations to governments on how to support and grow women-led and women-owned businesses in the Asia Pacific region.
- Launching an initiative in partnership with the Asian Gender Network (AGN) and UN Women to promote the Gender Lensing Principles throughout the Asian social investor community.