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The Secretary-General’s Strategy for
Financing the 2030 Agenda, and financing
development challenges and priorities
Ulukbek Usubaliev
Macroeconomic Policy and
Financing for Development
Division
Issyk-Kul, Kyrgyzstan
21 August 2019
Main Messages
Key issues in financing sustainable development to achieve the
2030 Agenda in North and Central Asia:
- Large investment gap and its estimating issues
- Weak economic diversification which reduces financial resources
- Limited public and private financing the 2030 Agenda
Key priorities of the region in financing development framework :
- Comprehensive financing strategies and integrated policy
frameworks are necessary to achieve the 2030 Agenda
- Estimating investment gaps
- Resource mobilization: tax revenue, private finance through
capital market development and Public-Private Partnerships,
climate finance
How the UN including ESCAP is supporting:
- Secretary-General’s strategy and integrated national financing
framework.
- Analytical work, research and capacity building
1. The Secretary-General’s
strategy for financing the
2030 Agenda and integrated
national financing
frameworks
3 Objectives
Aligning global economic policies
and financial systems with the
2030 Agenda
Enhancing sustainable
financing strategies and investments at
regional and country levels
Seizing the potential of financial
innovations, new technologies and digitalization to
provide equitable access to finance
1 Goal
1
Integrate the SDGs and
Paris Agreement into
Economic & Financial
Policies and Practice
2 3
4 5 6
Scale-up Climate
Finance
Highlight the needs of
LDCs and SIDS
Accelerate the work of
the UN SystemEstablish Global
Platforms
Strengthen
Partnerships with IFIs
Integrated national financing frameworks: overview
- Most national development plans are not
accompanied by financing strategies.
- Integrated national financing frameworks help:
- Align financing with long-term priorities
- Focus on binding constraints to mobilize resources
- Identify targeted policies and reforms
- Facilitate sequencing of reforms
Integrated national financing frameworks: building blocks
Source: FSDR 2019
The Survey 2019 estimated investment gaps which is one of the initial
steps to develop an integrated financing framework.
It also shows the range of policy interventions needed to achieve SDGs
2. Key challenges in financing
sustainable development in
North and Central Asia
From 17 Goals to 3 dimensions…
spanning people, prosperity and the planet … supported by good governance and strong partnerships
People Planet
Prosperity
ESCAP’s Survey 2019 estimates an investment
gap of $1.5 trillion per year or 5% of GDP for
developing Asia-Pacific …
Annual avera
ge, 2016-2
030
$ b
illio
ns in 2
016 c
onsta
nt prices
669
People Prosperity Planet
… or ≈ $1 per person per day
≈$1 43₵
NO POVERTY
& ZERO
HUNGER
HEALTH AND
EDUCATION
12₵
SUSTAINABLE
INFRASTRUCTURE
FOR ALL
37₵
CLEAN ENERGY
FOR ALL
PROTECTION
FOR NATURE
It’s within reach!
Weak economic diversification. Strong commodity
dependence substantially reduces capacity to
finance for achieving the 2030 Agenda
-11.4 -11.4
-9.8
-8.4
-12
-8
-4
0
2014 2015 2016 2017
Per
centa
ge
of
GD
P
Non-Oil Fiscal Balance of the
Russian Federation
-6.6
-8.9
-12.9
-8.3
-12.7
-13
-9
-5
-1
2013 2014 2015 2016 2017
Per
centa
ge
of
GD
P
Non-Oil Fiscal Balance of
Kazakhstan
-46.5
-35.8-34.4
-37.7
-32.6
-50
-30
-10
2013 2014 2015 2016 2017
Per
centa
ge
of
GD
P
Non-Oil Fiscal Balance of
Azerbaijan
Source: the author’s estimations based on the national authorities’ data
Significant dependence on oil revenue and
commodity prices volatility
51.943.3
35.9 35.8
48.156.7
64.1 64.2
0
20
40
60
80
100
2014 2015 2016 2017
Per
centa
ge
F i s c a l R e v e n u e s o f
R u s s i a
Oil Revenues Non-Oil Revenues
4840
2333
5260
7767
0
20
40
60
80
100
2014 2015 2016 2017
Per
centa
ge
F i s c a l R e v e n u e s o f
K a z a k h s t a n
Oil Revenues
Non-Oil Revenues
62 57.244.3 41
49.5
38 42.855.7 59
50.5
0
20
40
60
80
100
2013 2014 2015 2016 2017
Per
centa
ge
F i s c a l R e v e n u e s o f
A z e r b a i j a n
Oil Revenues
Non-Oil Revenues
Source: the author’s estimations based on the national authorities’ data
Significant dependence on commodity export
and commodity prices volatility
65.358.2 53.6 54.2
34.741.8 46.4 45.8
0
20
40
60
80
100
2014 2015 2016 2017
T o t a l E x p o r t o f
G o o d s o f t h e R u s s i a n
F e d e r a t i o n
Energy (Oil and Gas)
Non-Energy
66.8 66.757.6 52 55.3
33.2 33.342.4 48 44.7
0
20
40
60
80
100
2013 2014 2015 2016 2017
T o t a l E x p o r t o f G o o d s
o f K a z a k h s t a n
Energy (Oil and Gas)
Non-Energy
94.4 94.2 90.4 90 90.3
5.6 5.8 9.6 10 9.7
0
20
40
60
80
100
2013 2014 2015 2016 2017
T o t a l E x p o r t o f G o o d s
o f A z e r b a i j a n
Energy (Oil and Gas)
Non-Energy
Source: the author’s estimations based on the national authorities’ data
Infrastructure financing needs in Asia’s LLDCs
require 10.5 % of GDP annually in average to close
infrastructure gap within 2018-2030
0% 5% 10% 15% 20% 25% 30% 35%
Afghanistan
Armenia
Azerbaijan
Bhutan
Kazakhstan
Kyrgyz Republic
Lao PDR
Mongolia
Nepal
Tajikistan
Turkmenistan
Uzbekistan
% of GDP
2018-2030
Transport Energy ICT WSS
Infrastructure has a direct influence on over 80 per cent of
the Sustainable Development Goals targets (UNEP, 2019).
3. What should the priorities be
for the North and Central Asian
region in financing framework?
Mobilization of public and private resources
Source: FSDR 2019
Increasing tax revenue. Better tax administration,
higher tax revenue
China
Hong Kong, China
Indonesia
IndiaCambodia
Republic of Korea
Myanmar
MongoliaMalaysia
Philippines
Singapore
Thailand
Tajikistan
Turkey
0
5
10
15
20
25
30
35
20 30 40 50 60 70 80 90 100
Ta
x r
eve
nu
e-t
o-G
DP
ra
tio
in
20
14
(%
)
The value of Tax Administration IndexSource: ESCAP Survey 2018
Leveraging private finance through public-private
partnerships. More enabling policy environment, larger
PPP value
Source: ESCAP Survey 2018
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
KiribatiMaldives
Marshall IslandsSamoa
Solomon IslandsTajikistan
Timor-LesteVanuatu
MyanmarCambodia
FijiKyrgyzstan
TurkmenistanNepal
ArmeniaBhutan
BangladeshGeorgia
UzbekistanAzerbaijan
Lao PDRMacao, China
PakistanSri LankaMongolia
Brunei DarussalamPapua New Guinea
Viet NamIran, Islamic Rep.
Asia and PacificIndonesia
KazakhstanPhilippines
Russian FederationIndia
New ZealandTurkey
MalaysiaChina
SingaporeHong Kong, China
ThailandJapan
AustraliaRepublic of Korea
Capital market development levels in Asia-
Pacific in 2016
Source: IMF
Enhancing the role of domestic capital markets
ODA
(e.g. improved cook stoves in Mali)
ODA
(e.g. climate-resilient infrastructure in Nepal)
Not ODA
TOSD
(e.g. wind turbines in Kazakhstan, China,
etc.)
ODA
(e.g. climate-resilient agriculture
in Kyrgyzstan, Vietnam, etc.)
Middle-income countries
Least developed countries
Mitigation Adaptation
Scale-up Climate Finance
- environmental dimensions of the 2030 Agenda;
- weak economic diversification;
- diversification of sources of financing
Climate Finance allows to address:
4. ESCAP’s work supports sustainable
development goals 1, 8, 9, 10, 16, and 17, along with
strengthening finance as a mean to implement them
Research work and knowledge products:1. “The Economic and Social Survey for Asia and the Pacific”. The Survey for
2019 focused on estimating the cost of achieving the SDGs by 2030 in Asia
and the Pacific. Recent editions have analyzed issues such as mobilizing
finance for sustained, inclusive and sustainable economic growth (2018),
improving governance and fiscal management (2017), and nurturing
productivity (2016).
2. “The Countries with Special Needs Development Report” for 2019 explored
the role of structural transformation in poverty reduction in CSN of Asia and
the Pacific region. Recent editions have discussed issues such as sustaining
peace for sustainable development (2018), investing in infrastructure (2017),
and adapting the 2030 Agenda at the national level (2016).
3. Financing for Development book, Financing in Asia and the Pacific: situation
and challenges. The 2019 issue focused on infrastructure financing strategies
for sustainable development. The 2017 issue discussed Tax Policies for
Sustainable Development.
4. ESCAP also publishes research studies, working papers and policy briefs on various financing for development issues.
Further, ESCAP provides capacity building
services
ESCAP provides technical support and capacity building services in a host
of areas:
• Supporting policymakers to leverage domestic financial resources
more effectively and mobilize innovative financing strategies for
sustainable development;
• Building countries’ capacity to implement public-private
partnerships to finance infrastructure projects, and develop a PPP
and infrastructure financing network;
• Supporting the design and implementation of finance strategies and
related fiscal governance issues.
TAKEAWAY MESSAGES
Key challenges such as investment gap
including estimating issues, weak economic
diversification, and very limited mobilization of
public and private resources should be the
priorities for North and Central Asia for
achieving the 2030 Agenda
UN provides an overarching support to
member States to address financing
development challenges and priorities of the
countries to achieve the 2030 Agenda
Thank you!
ESCAP Financing for Development in Asia and the Pacific 2019
www.unescap.org/resources/financing-development-asia-and-pacific-
highlights-context-addis-ababa-action-agenda-2019
ESCAP Economic and Social Survey of Asia and the Pacific 2018
www.unescap.org/publications/economic-and-social-survey-asia-and-pacific-
2018
DESA Financing for Sustainable Development Report 2019
www.developmentfinance.un.org/fsdr2019
ESCAP Economic and Social Survey of Asia and the Pacific 2019
www.unescap.org/publications/economic-and-social-survey-asia-and-pacific-
2019
ESCAP Asia-Pacific Countries with Special Needs Development Report
2019: Structural transformation and its role in reducing poverty
www.unescap.org/publications/asia-pacific-countries-special-needs-
development-report-2019
UN Secretary-General’s Strategy for Financing
the 2030 Agendahttps://www.un.org/sustainabledevelopment/sg-finance-strategy/
