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Sector Financing in the SDG Era

image of Sector Financing in the SDG Era

The Sustainable Development Goals (SDGs) are highly intertwined with sectors such as health, education, energy or agriculture. Hence, measuring official development finance (ODF) flowing to sectors is critical to designing efficient development strategies in the SDG era. Yet, this exercise is complex, and this report is a first attempt to provide a comprehensive picture of ODF allocations by sector.

The analysis includes not only official development assistance (ODA), but also other official flows (OOF) and resources mobilised from the private sector by official development interventions. It provides unique data for the period 2012-16 on sectors financing by country, type of instrument and channel of delivery. It looks into potential data gaps and the challenge of matching the traditional typologies of donors’ investment by sector with their expected, multi-sectoral outcomes, as framed by the SDGs. The report provides policy makers and sectoral experts with some insights into the implications of the 2030 Agenda for the sectoral strategies of development co-operation providers.

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Designing effective sector financing instruments and approaches

This chapter provides a cross-sector analysis of official development finance by the financial instruments, approaches and channels of implementation used by development partners. The first section focuses on the use of various instruments across sectors, outlining the main trends and patterns in the use of concessional and non-concessional resources. The second section explores funding patterns across the different financing approaches and implementation channels used in development co-operation across sectors.

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