“Strengthening Growth and Development”: Financing Sustainable Development
Without a doubt, the achievement of sustainable development goals today, is of utmost important, but more important is financing of such goals. Taking into account the challenges preventing progress of member nations,policy leaders have been calling out the need for financial assistance of certain goals in an effort to eliminate certain challenges in progress. Policy leaders have been advocating the need for a coherent financial architecture to financially support sustainable development for long, however, with respect to recent unavoidable challenges in progress, a concrete financial architecture is need of the hour.
As the major focus of member nations is on Sustainable Development Goals, policy makers should bring their attention to identify key finances for projects. As most of the least developed economies have relied on foreign aid in the past, it is now important for policy makers to reinforce these least developing economies with concrete policies which would then be able to utilise the financial aid provided by powerful nations and international agencies which will make them independent moreover responsible in making decisions.Looking at the necessary investment needed for such projects, the project such as theΓÇ£sanitation and water for allΓÇÙis estimated to $290 billion on infrastructure or $27 billion a year by 2030.
There is absence of coordination between regional and state agencies, along with key gaps in cooperation and coordination between international agencies organizations, institutions and private stakeholders, thus, the progress has been largely at minuscule level, making no big differences in the lives of people today. Undoubtedly, the need for more concrete infrastructure is eminent as it would then be able to support the goals of sustainable development while opening economic opportunities to the people, fostering necessary growth and development in the World.
To achieve the goals of sustainable development, policy makers need to be active and ambitious, not only in their efforts to achieve the goals but also on policies. One possible way is to empower developing economies by giving them necessary access to finances either through government agencies or private entities. As clearly stated in the Addis Ababa Action Agenda, inviting private entities as stakeholders is the need of the hour for the achievement of Sustainable Development Goals. Using the necessary skills and technology,member nations will be able to increase their productivity which would then empower them in achieving other goals with a similar pace. This is only possible if member nations allow private entities and governments to finance necessary projects through green bonds which will allow funding of such projects from the start.
Many economists continue to argue that, that excess of capital will overlap the growth of a nation, which further increases inequality and wealth. This contradicts the SDG Goal 10, which stresses on reducing inequality, which, with reference to developing and least developed economies can be tackled in two ways. Developing and least developed economies needs to introduce a global tax system, these economies should also increase the level of access of wealth to developing economies; this is a statement which many nations, even the power economic needs to concentrate.
Through such initiatives, member nations are circulating money within the lower and the middle income groups which then eases them to increase their lifestyle easily. These can be possible through nationalised banks or through reinforced government policies making easier for people to access the money and grow. More importantly, the policy makers need to stress on the fact that equal opportunities should be given to all people to grow in an effort to increase their economic status.
One possible way to increase general public access to financial opportunities is assessing larger financial organizations or creating government agencies that will allow services at a minimal cost. Introducing the start-up community to Wall Street will prove to be a progressive step. By providing greater opportunities for start-ups to invest will result into greater economic opportunities for the general public which will then allow them to grow even farther than the economic ecosystem they live in. Policy makers also need to closely attention to the point that, wealthiest economic groups are not the epicentre here. Taking few example of developing economies, India has the highest number of middle income groups, thus, policy makers need to effectively provide economic opportunities for the middle classes to flourish. Governments should also identify key financial and technological entities; these entities provide enormous economic opportunities. For example, think about a company which would allow farmers to sell their products directly to their customers in some third world nations without investing financially. Today, a lot can be achieved with technology and it is important for policy makers to take this on a positive road.
Readdressing challenges with concrete policies and effective resolutions also addressed the governmentΓÇÕs abilities to take the politics in a positive direction. By agreeing to a global taxation policy government of member nations will be efficiently be able to collect the taxes that are due, further enriching growth of developing economies which would prosper further growth and development. Today, billions of dollars are funded through tax havens; the money which finds its way out, does not reach to the stakeholder or does not make it back to the home country. Moreover, most of the impoverished countries are supposed to be end user. It is important for policy makers to effectively address this issue and resolve the issue systematically with a clear vision and approach. Problems such as these takes place on a larger scale and has many hidden stakeholders, problem such as these needs in time response and cooperation from concerned authorities and ensure no ΓÇ£special treatmentΓÇÙ for entities involved.
Without interest from developed and developing economies, achieving the goals of sustainable development will be difficult, human lives are at stake here. Through adequate financial investments and cooperation from national, international and regional agencies and stakeholders to maintain a clear vision and coordination between the formerΓÇÕs will greatly affect the lifestyle of communities and further reinforces the growth and development of a nation. Policy makers should address this issue with sensitivity and with a broader approach, the lives of future generations are at stake.
More importantly, policy makers need to in-depth study the current economic ecosystem which today lay crippled with exploitation and misuse. How to invite member nations in developing strategic partnership between the stakeholders needs to be explored. Moreover, policy makers need to focus more on opportunities for future generations than on short term growth.
|┬á||Anant Mishra is a former Youth Representative to the United Nations. He has served extensively in United Nations General Assembly, the Security Council along with the Economic and Social Council. He is also a visiting faculty for numerous universities and delivers lectures on political economics and foreign policies.|
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