Center for Development Finance Studies Center for Development Finance Studies - CDFS A recently established NGO that will contribute to the extension and deepening of the development finance market by drawing on private and public partners. The Sustainable Development Goals (SDGs) are the most ambitious agenda for sustainable development ever adopted by the world's countries and exist to achieve four great things by the year 2030: End extreme poverty. To reduce inequalities and injustices in the world. To promote peace and justice. Solving the climate crisis. However, the costs of achieving the SDG goals and implementing the SDG agenda are enormous - the UN (UNCTAD 2014) assessed e.g. that it would cost between 3,300 billion and 4,500 billion dollars per year between 2015-2030 just at the developing ends. The world's mainly tax-financed aid of about 160 billion dollars (OECD DAC 2020) per year is simply not enough. The question is how this gap can be financed. The global strategy consulting firm Boston Consulting Group estimates (June 2020) that the value of total financial market assets is approx. 250,000 billion dollars, i.e. all of our financial assets in the form of shares, bonds, liquid funds managed by, central banks, states, insurance companies, pension managers, banks, fund managers, private individuals etc. An important component to be able to achieve financing of the SDG agenda involves mobilizing a part of this, sometimes called "private" capital for the SDG goals. The biggest challenge is how this can happen in practice - what is required? Academics, economists, researchers, politicians have via e.g. international organizations such as the OECD, the UN and think-tanks have presented many reports, with essentially a macro perspective on this major challenge. There are significantly fewer examples of initiatives that start from the investor perspective - what specific levers/leverages, problems are there to concretely integrate global investments on such a way that the necessary financial returns are created for the future while the SDG goals can be financed?Sida's proposed contribution to the Center for Development Studies (CDFS) is one such initiative where Sweden together with Nordic neighboring countries (primarily Norway and Denmark) but also global foundations such as the Bill & Melinda Gates Foundation and the Rockefeller Foundation have the opportunity to i) identify actual problems ii) develop concrete technical solutions and iii) support their implementation by financiers both aid actors and the private sector. The Center for Development Finance Studies is a non-profit organization which practically focuses on getting the "development finance system" more integrated into the wider global financial market. The aim is to mobilize more of the financial market's capital in line with the SDGs. CDFS's working method is to, based on i) identified issues that are of significant importance for mobilizing this capital ii) develop technical solutions together with actors from the development world (MDBs, Aid authorities, etc.) and the financial markets (investors, legal advisers, rating institutes, banks, etc. ) and iii) push through these solutions concretely through advocacy work. The specific problem areas have been identified within three overarching areas; policy, solutions and capital. Examples of issues within these are: Policy: Taxes - How can alternative arrangements be used to avoid tax havens and that aid funds are channeled in ways that avoid tax? Solutions: Supporting local capital markets: How can local currency financial instruments be developed to mobilize local capital that develops local capital markets and favors south-south investment. Capital: Catalytic capital: Document effectiveness of catalytic capital today and identify principles for prioritizing between different approaches to use instruments within development financing, e.g. guarantees. En nyuppsatt NGO som verkar för utvecklingen av utvecklingsfinansiering och samarbete mellan privata och publika aktörer. Målsättning med CDFS verksamhet från start är:

Bidra till mobilsering av kapital från privata sektorn för att skapa både finansiell avkastning och utvecklingseffekter.  

Identifiera praktiska hinder, och ta fram tekniska lösningar på dessa, för att aktörer på globala kapitalmarknader i högre utsträckning än idag ska kunna bidra till finansiering av SDG målen.

Arbeta med bas i de Nordiska ländernas neutralitet, partnerskap, nätverk och expertis för att driva utvecklingsfinansieringsagendan globalt.

Sidas föreslås bidra katalytiskt och förväntar sig specifika resultat under 2022-2023 enligt nedan:

- CDFS synlighet IRL/Web

- Expansion av operativa teamet

- Knyta strategiska partnerskap

Utveckla stöd och/eller verktyg för garatigivare att mäta och jämföra katalytisk effekt av utvecklingsgarantier