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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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Rethinking sector financing strategies to achieve the Sustainable Development Goals

Recognising that an overview of official finance by Sustainable Development Goal (SDG) is highly challenging given the multifaceted and integrated nature of the SDG agenda (Chapter 2), analyses along traditional sectors represent the strongest basis available to inform interventions targeting the SDGs. The first section of this chapter provides an overview of the main patterns and trends of sector financing by official development finance providers. It builds on an analytical framework that draws on the implications for sectoral analyses of the Addis Ababa Action Agenda, using both official development finance and private finance mobilised through official development interventions. The second section complements the first one by looking in more detail at the current division of labour between bilateral and multilateral providers across sectors. The third section then scopes the sector implications that the new SDG agenda has on providers’ sector financing strategies and how they can concretely adjust these financing strategies to reflect the new 2030 Agenda.

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