9 February 2015: Launching a new blog on the website Development Progress, a UN Development Programme (UNDP) specialist highlights developed and developing country perspectives on financing for development (FfD). ‘A crucial year ahead: development finance and the need for fresh perspectives’ is the first in a series of articles leading up to the Financing the Future (FtF) Conference, taking place in Accra, Ghana, on 17-18 March 2015.

Gail Hurley, UNDP, writes that developed and developing countries place different emphasis on the role of the public versus the private sector in financing sustainable development. While developing countries stress the importance of public resources for development, she says, developed countries call for an increased role by the private sector, and, to that end, using official resources to catalyze private finance, improving domestic investment climates, and supporting financial inclusion.

Climate change adaptation and mitigation resources continue to be “a major sticking point” between developed and developing countries, Hurley observes. Developing countries argue that climate finance must be new and additional to development aid, and counted separately.

Several developed countries have stressed that the concept of universality applied to the Sustainable Development Goals (SDGs) is about “fair burden sharing,” which means all countries must contribute to the financing of the new agenda, Hurley states. She says that some believe middle-income countries (MICs) “should put more cash on the table,” and some NGOs have suggested an aid target for Brazil, the Russian Federation, India, China and South Africa (BRICS), while most developing nations stress South-South cooperation as complementary to aid.

Hurley reports that in UNDP’s view, these discussions echo Millennium Development Goal (MDG)-type debates on filling resource gaps and asking richer countries to finance the agenda. Since the SDGs and the range of challenges are much broader than under the MDGs, however, she recommends considering: how to ensure the SDGs are well resourced without compromising development aid; and examining criteria for allocating concessional finance. Highlighting volatility as “the new normal,” she says resilient communities and nations must be able to anticipate and adapt to shocks in order to achieve sustainable development.

Hurley also discusses: “a strong push-back” from developing countries on public-private partnerships; ‘smart’ aid; and support for maintaining the structure of the 2002 Monterrey Consensus on FfD, with a new section on technology and innovation, ahead of the Third International Conference on FfD (FfD 3).

The FtF Conference will take place on the theme, ‘Fresh Perspectives on Global Development.’ It is hosted by the Overseas Development Institute (ODI) and a global coalition of partners including UNDP. It aims to explore how international public finance can contribute to accelerating development progress, and to influence decision-makers ahead of FfD 3. [Blog post: A crucial year ahead] [Financing the Future Conference] [IISD RS Coverage of First Drafting Session for FfD 3]