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 standards is viewed positively. I do not wish to repeat what was mentioned above about IsDB's efforts in addressing climate change and its recent issuance of Sustainability Sukuk (allocated to spending on social sectors in the wake of the COVID-19 pandemic) and Green Sukuk, as well as its launching of more than 20 sectoral policies. In addition, one can further emphasise IsDB's commitment to social, environmental and economic standards with a few examples: u In cooperation with the International Federation of Red Cross and Red Crescent Societies (IFRC), IsDB established a fund to eliminate cholera and secure water supply and hygiene. The fund aims to mobilise US$ 150 million in grants from donors. IsDB will provide payable guarantees worth US$ 100 million but will not offer its own resources, thus saving funds for other projects. At the same time, it will be able to help 29 MCs fight cholera and make a positive impact on the lives of five million people. It will also contribute to achieving SDG 3 on health, SDG 5 on gender equality, SDG 6 on water and sanitation, and SDG 17 on partnerships. Moreover, IsDB will contribute to the implementation of the roadmap for eradication of cholera and a 90% reduction in mortality by 2030. Many private sector philanthropic donors have expressed interest in the fund. It is noteworthy that IFRC has extensive experience on the ground, having served 36 million people through similar programmes since 2005. However, it has no capacity to create funds on its own. u The Global Muslim Philanthropy Fund for Children is a trust fund established by IsDB in collaboration with UNICEF to harness social and Islamic finance towards supporting children in emergencies, education, health, water, sanitation, hygiene and nutrition. KSRelief and the Abdul Aziz Al Ghurair Foundation of the United Arab Emirates contributed to the fund. The fund will provide support in the form of grants and its resources can be blended with IsDB's Ordinary Capital Resources. Out of the fund's resources, 90% will be allocated to LDCs. This US$ 250 million fund includes a charity-based window and a Zakat-based window and is supervised by a committee comprising IsDB and the donors. u The IsDB-World Food Programme nutrition fund is an IsDB-managed multi-donor trust fund that receives its resources from Zakat and charity sources. It aims at combating acute and chronic malnutrition and feeding infants and young children and supports SDGs 2, 3 and 17. u The Economic Empowerment Fund for the Palestinian People was established by IsDB on the back of the success achieved in the Deprived Families Economic Empowerment Programme through empowerment-based Islamic microfinance. It focuses on providing an integrated package of financial and non-financial services. The fund managed to combine elements of economic, social and governance impact. It aims to support 300,000 Palestinian families, improve their living conditions and quality of life and promote productive lives and social equality. u The Saving Women from Breast and Cervical Cancer Fund is an IsDB-IAEA joint fund. Both institutions agreed to establish a project-first, rather than resource- mobilisation-first, fund to save women from breast and cervical cancer by providing affordable and accessible healthcare applying the public-private-philanthropic partnership for the people model (5Ps model). Its aim is to bolster the fight against the two types of cancer that affect women through early detection, diagnosis and treatment. This helps low and middle-income countries curb disease and mortality. In addition to IsDB, ISFD and several private sector institutions, 17 countries have contributed to this fund. QUESTION: It is noticeable that the developmental role of the non-profit sector in developing countries is very modest compared to its counterpart in developed industrialised countries. Does IsDB have a plan to help MCs invigorate this role to contribute more to socioeconomic development? ANSWER: If we look at developed countries, we will find three sectors: the public sector, the private sector and the non-profit sector, all of which are financially and organisationally strong and complementary. The global average contribution of the non-profit sector to GDP is about 6%, while in developing countries it is less than 1%. In addition, in most developing countries we find a sagging public sector, a weak private sector and a non- existent or very weak third sector. In some developing countries, the non-profit sector suffers financial, legislative and regulatory problems and lacks diversity in its activities, most of which are of charity or relief nature, not developmental. Some MCs have launched economic transformation and reform programmes, which are nonetheless focused on the governmental and private sectors. As a result, they face some challenges because the shift towards a market economy without a strong third non-profit sector has negative effects due to distortions in the market system. As such, a main motive behind the interest in the non-profit sector is the desire to address the deficiencies caused by the market system. Therefore, when we were designing IsDB's new business model, we wanted it to cover the three sectors and to make them interlinked in a manner that would achieve inclusiveness, [ 21 ]