The Road to the SDGs

PURPOSE X Development finance falls short of the financing gap identified by the SDGs. To meet the SDGs, IsDB MCs need to crowd-in market resources by reorienting development programmes to tap into their current areas of competitive advantage as a starting point. They can then use that to expand their added value. X Resource-rich countries that are able to ensure added value along GVCs are well-placed to thrive in this system. IsDB believes that all countries, including those that do not have natural resources, should be able to connect to value chains and that industrial policy should be targeted at enabling this sort of inclusivity. X The new IsDB business model, ‘Making Markets Work for Development’, is designed to reorient development operations to drive the competitiveness of MCs’ strategic industries and connect them to GVCs X IsDB is committed to continuing its investment in infrastructure projects that raise the efficiency and performance of the market players and value chains in its MCPSs. This includes playing an active role in project sourcing to improve the quality of projects and attract private sector participation for maximum impact. X There are sustainability gains to be made by addressing infrastructure challenges in sectors that are known for their high impact on the environment. In this connection, IsDB has identified a need to define growth targets based on actual resources transferred to MCs, rather than only on approvals. It has also identified the need to manage operating plans for internal resources while considering long-term financial commitments and looking for potential co-financiers. METHOD X IsDB’s new business model and, in particular, the P5P focus on how to add economic value in strategic competitive industries connected to GVCs. IsDB uses GVCs to help it prioritise projects in a way that targets all players in a specific value chain. X Based on GVCs, the recently launched MCPS 2.0 draws on the principles of the P5P to support MCs. It is intended to Member Country Partnership Strategy 2.0 I nternational production, trade and investments are increasingly organised within GVCs, with the various stages of the production process located across different countries These are of central importance to competitive performance for our MCs IsDB aims to become a global hub of analytical and de-risking financial instruments that connect market players to their potential clients and financiers globally [ 162 ] SDGs