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 QUESTION: How can the new business model make markets work for development? What does making markets work for development mean? And what do the numbers 1/5/10 signify? ANSWER: With this new business model, IsDB aspires to be a pioneering, proactive and at the forefront of developmental action, that meets the needs of its MCs. Under the second generation of member country partnership strategies (MCPS 2.0), IsDB has shifted from country programming based on financing projects as requested by MCs to proactive market-driven programming. This model focuses on selecting industries where each country has a competitive advantage then building value chains for such industries and connecting local value chains with global ones. By doing so, the country establishes an industry that provides economic added value, jobs and projects capable of attracting local and global investments. In this endeavour to make markets work for development, IsDB assumes new roles to serve all groups, particularly the poor and the marginalised, improve livelihoods and reduce poverty. The new roles are those of a catalyst, guarantor, transformer, facilitator and partner that leverages its strengths, including its AAA credit rating, its field presence in 57 countries and its excellent relations with non-member countries and international organisations, to mobilize resources for its MCs from global markets and de-risk investments. This is particularly significant in view of our recognition that IsDB's own resources and co-financing with other MDBs would never be enough to fill the US$ 1 trillion financing gap annually. IsDB conducted in-depth and comprehensive studies on the following five strategic industries in which MCs enjoy relative advantages. The objective is to strengthen their competitiveness in these sectors, qualify them for Industry 4.0, and identify the trends that will shape the future of these industries in the 57 MCs by 2030 and beyond. 1. Agri-food The agricultural sector in MCs remains inadequately exploited because of the focus on primary production, preventing it from generating higher added value and creating more jobs. The COVID-19 pandemic has exposed the weakness of global food supplies and raised questions about food security and ways to achieve it. To enhance their competitiveness, promote domestic value chains and facilitate their access to global markets, MCs need to position themselves within the complex agri-food value chains and protect the future of this industry through modernisation and investment in science, technology and innovation (STI) and in global partnerships. They should also include public-private partnerships (PPPs) in their strategies. 2. Mining and construction MCs have huge mineral reserves, accounting for 11% of the world production, but need to expand into the processing of those minerals. MCs are also rich in THE FUTURE Volume 3 REALIZING OPPORTUNITIES FOR THE 21 ST CENTURY THROUGH RESILIENT GLOBAL VALUE CHAINS MINING & CONSTRUCTION THE FUTURE Volume 4 REALIZING OPPORTUNITIES FOR THE 21 ST CENTURY THROUGH RESILIENT GLOBAL VALUE CHAINS AGRI-FOOD [ 5 ]