The Road to the SDGs

at an acceptable level of risk and in line with the fundamentals of good governance. METHOD X IsDB’s Fund Management Framework was approved by the Executive Management Committee in December 2019 and adopted by the BED in February 2020. X The Framework includes both an operating and a governance framework with strong and transparent governance arrangements that will ensure that both existing and new funds are placed on solid foundations and will sustain the support of financial contributors over the long term. X The Framework was developed in-house, with some TA from independent experts from Adam Smith International (a UK-based global advisory firm specialised in the development and delivery of programme and trust funds for bilateral and multilateral deployment) through a three-stage process: – A gap analysis of the existing IsDB-administered funds – Design of a robust framework, in line with international standards, that is tailored to IsDB’s needs – A clear implementation roadmap, including an IT solution, to deliver effective and transparent management of all funds. ACHIEVEMENTS X The Fund Management Framework helps IsDB adhere to some key business principles: – Transparent and inclusive decision making, both within IsDB and in global and country partnership bodies and forums in which IsDB and its partners participate – Cost-effectiveness and value for money for financiers and beneficiaries alike, with a view to ensuring the long-term sustainability and effectiveness of the funds business – Risk-based management of funds (not seeking to avert all risks, but rather ensuring that the risks taken are acknowledged, calculated and managed) – A commitment to the Paris Declaration in the management of funds, including country ownership and mutual accountability. X Consistent delivery of results in line with strong business principles and international best practice will allow IsDB to capitalise on its experience, reach out to like-minded developers and enable the market to work for development. X A clear and robust fund management framework is now a prerequisite of the due diligence process before an external financier is able to make any commitment to a fund. This initiative has delivered such a framework, and now provides a fundamental basis for discussion with potential partners in new funds. X Benefiting from the approved Fund Management Framework as a basis of negotiation built on trust, a series of resource mobilisation initiatives targeting upwards of US$ 1 billion are currently under development with partners. X In accordance with the Fund Management Framework, the most significant IsDB-administered trust funds and special funds now have a robust Investment Policy Statement that helps ensure more effective investment management for superior risk-adjusted returns. X Beyond these foundational achievements, completion of implementation across all funds is expected in 2021, with only some aspects related to the IT solution potentially extending into Q2, 2022. INVESTMENT X The approved Fund Management Framework document was developed at a cost of ID 120,000, out of a budget of ID 900,000 for full operationalisation of the framework. This level of expenditure is dwarfed by current resource mobilisation initiatives benefiting from it, which currently amount to more than US$ 1 billion, including CWS, UNRWA, Muslim Philanthropic Fund with UNICEF, and IWIF. X As IsDB moves into operationalising and embedding the full, comprehensive and robust external fund management service, offering good governance and transparency to all providers of finance — whether public or private, large or small — there is the possibility of unlocking huge potential, in particular in the Awqaf sector, measured in the realms of US$ trillions. T H E F U N D M A N A G E M E N T F R A M E W O R K The Framework’s several resource mobilisation initiatives target at least US$1 billion P R O J E C T B U D G E T The Framework was developed with a budget of approximately ID120,000 [ 189 ] 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