The Road to the SDGs

T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S reduce the magnitude of external debt and, hence, the creditors would own the assets in return for full or partial debt write-off. There are many lessons to be learned from such practices. However, what I would like to emphasise briefly is that external debts can have a negative or positive impact on the lives of citizens in the borrowing countries, depending on the development financing model, the modes of financing, transparency and the involvement of the private sector in development. It is my view that IsDB's new business model includes many solutions that can solve the external debt crisis of developing countries. QUESTION: The launch of the IsDB new business model was accompanied by an organisational migration and restructuring that included IsDB's regional hubs. What are the main initiatives and programmes of this restructuring? ANSWER: The P5P and the new business model had to be reflected in an organisational structure that is consistent with them and meets the aspirations of IsDB Group institutions, as expressed in IsDB's 40-year assessment report, which were for IsDB to be proactive, pioneering and agile in identifying the current needs of MCs and placing safeguards for the future. In this context, we have taken several initiatives since 2017, including: u Developing a comprehensive strategic programming framework to ensure that IsDB's financial and non- financial resources are effectively allocated to help realize the strategic priorities and maximize the developmental impact in MCs. The framework, which was the first among MDBs in terms of internal and external integration, helps ensure that IsDB meet the needs of MCs and select appropriate interventions. The framework enhances transparency in distributing resources based on strategic priorities and in measuring the developmental impact of activities. All our work is programmed in one framework according to an integrated approach in four key areas: strategy, operations, finance and budget. u Updating current policies and developing 22 new policies to help implement the P5P in an institutional manner and in accordance with international standards. u Applying functional and geographical decentralisation for IsDB to be close to MCs, private sector partners, CSOs, universities, research centres, etc. This will enable IsDB's transformation into an organisation with a light structure and higher quality in project implementation, leveraging cloud technologies and platforms. This, in turn, will lead to reducing project operational costs as a result of the expedited cycle. In 2016, only 6% of IsDB staff were working in regional hubs, while 94% ran the business from the headquarters. In contrast, we are currently aiming to redeploy 60% of the staff to regional hubs. We plan to have 11 regional hubs, and seven of them are already operational. The Kuala Lumpur hub was transformed into a centre of excellence in Islamic finance, STI, Halal industry and reverse linkage. u Designing financial sustainability programmes to ensure that IsDB maintains its financial soundness and its AAA credit rating. Sustainability has become a critical element in decision-making, by focusing mainly on the effective alignment of approvals and disbursements. Internal financial reporting controls have been put in place in accordance with the internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission to ensure that an independent body exists to provide internal controls similar to relevant practices of leading global organisations. IsDB has been awarded a recognition of delivery on the quality and improvement of its financial reporting and focus on governance and ethical practices. The delegation of authority matrix was also amended to enhance accountability, improve coordination between the four entities that make up the IsDB Group and reduce overlap in their activities. A separate complex was established to focus on the development of partnerships, mobilisation of external resources and new areas. An STI department was also established to carry out three key strategic tasks: (1) introducing and integrating innovation into IsDB business and activities; (2) helping MCs build an integrated STI ecosystem; and (3) enabling young innovating men and women to achieve their ambitions with an integrated package of support, including -in addition to funding- training and support in obtaining intellectual property rights. Moreover, a social development and resilience department was established, as well as a department to help MCs achieve resilience against climate change. We also launched a comprehensive workload assessment to identify current and future staffing needs and ensure that we have the best level of resources and the optimum size of calibre to implement our strategy and achieve our objectives. In other words, the assessment addresses the numbers and skills required to accomplish more with fewer resources. u Mainstreaming result-based management and focusing on the developmental impact of financing, rather than the volume of financing and interventions, so that the impact of every dollar spent for development on the ground can be identified. u Improving IsDB's media presence, enhancing its [ 15 ]