Professional Documents
Culture Documents
Means of
Implementation
(MOI) of
United UN Goals
Nations
GOALS Global Capital
Markets
The Green Political Foundation Nancy Alexander, Director of the Economic Governance Program
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New Paradigm launched in 2015
FROM BILLIONS TO TRILLIONS:
TRANSFORMING DEVELOPMENT FINANCE
Prepared jointly by WBG, AfDB, AsDB, EBRD, EIB, IADB, IMF
The Green Political Foundation Nancy Alexander, Director of the Economic Governance Program 16
The Green Political Foundation Nancy Alexander, Director of the Economic Governance Program
Where are the Trillions? The Pot
of Gold?
Pension, insurance funds (staggering gaps;
could go insolvent without higher yields).
So, bundle PPPs in water, electricity, transport
in portfolios for trading. In blended finance,
public sector takes (higher) risk in preparation
and construction; LTII takes (much lower) risk in
implementation.
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The Taxpayer and Users Pay, Demand Declines with
The Green Political Foundation Nancy Alexander, Director of the Economic Governance Program
The Green Political Foundation Nancy Alexander, Director of the Economic Governance Program
Debt: Vitor Gaspar, Director, Fiscal Affairs
Department
The Green Political Foundation Nancy Alexander, Director of the Economic Governance Program
Risks of unsustainable investment in
mega-infrastructure
Carbon lock-in (political and economic)
PPP CONTRACTS & INVESTMENT LAW: Loss of sovereignty and right to
regulate; poor risk allocation in PPPs
Human rights abuses (in particular land rights)
Land grabbing and displacement of people
Resource extraction (logging, mining) and environmental damage
Deforestation, Biodiversity loss
Corruption
Hidden debt buildup via long term liabilities
The Green Political Foundation Nancy Alexander, Director of the Economic Governance Program 26
2-THE MAGIC BULLET: $84 trillion
WORLD BANKS Kim: The infrastructure gap is simply enormous an estimated $1
trillion to $1.5 trillion dollars more is needed each year. To fill this gap, we need to
tap into the trillions of dollars held by institutional investors most of which is
sitting on the sidelines and direct those assets into projects that will have great
benefit for a range of developing countries.
UNS Ban Ki-moon: Urgent action is needed to mobilize, redirect, and unlock the
transformative power of trillions of dollars of private resources to deliver on
sustainable development objectives. (para 92) The Road to Dignity by 2030
ICESDF to General Assembly states: Engagement in isolated PPPs, managed in silos
should be avoided. The investing public entity should carry out a number of [PPP]
projects simultaneously and thereby take a portfolio approach for pooling funds for
multiple projects
Ban Ki-moon: Urgent action is needed to mobilize, redirect, and unlock the
transformative power of trillions of dollars of private resources to deliver on
sustainable development objectives. (para 92) The Road to Dignity by 2030
The Green Political Foundation Nancy Alexander, Director of the Economic Governance Program
Most countries arent ready for PPPs
18
16
16
14 Even if countries
12 seem to be ready
10 on paper,
9 there is Nascent
8 no guarantee that Emerging
6 6 Developed
6 the projects
4
are 4
5
Mature
4 finally a success.
3 3
2 1 1
0
0
Latin America and the Asia-Pacific (14) Europe and Cenral
Carribean (19) Asia (25)
The Green Political Foundation Nancy Alexander, Director of the Economic Governance Program