Financing for Development to Ensure No One is Left Behind in Asia and the Pacific

Transcription

1 Financing for Development to Ensure No One is Left Behind in Asia and the Pacific High Level Political Forum on Sustainable Development 2016 Proceedings of the high-level meeting 18 July 2016 (01:15-2:45 PM) United Nations, New York

2 Content Introduction 2 Speakers remarks 6 - Introductory remarks 7 - Welcome remarks 9 - Panel discussions 10 Programme 20 List of participants 22 Infographics 27

3 1 n Introductio

4 Financing for Development to Ensure No One is Left Behind in Asia and the Pacific I. Background The outcome document of the Third International Conference on Financing for Development: Addis Ababa Action Agenda encouraged regional commissions, in cooperation with regional stakeholders, to mobilize their expertise and existing mechanisms, which could focus on thematic aspects of the present Action Agenda. ESCAP has taken a leading role in the follow up process and implementation of the Addis Agenda in Asia and the Pacific. ESCAP has engaged with its member States through establishing a regional dialogue process to support the development of forward-looking strategies for taking concrete actions for the mobilization of financial resources for sustainable development at the regional level, while taking into account the sub-regional and national context. Building upon the priorities and recommendations identified at the Asia-Pacific Outreach Meeting on Sustainable Development Financing and the Asia-Pacific High-Level Consultation on Financing for Development, respectively held in June 2014 and April 2015 in Jakarta, ESCAP, in cooperation with the Republic of Korea, held the First High-level Follow-up Dialogue on Financing for Development in Incheon in March of The Chair s Summary from this High-Level Follow-up Dialogue was subsequently discussed further during the high-level side event Financing for Development Follow-up in the Asia-Pacific Region: Agenda for implementation of regional priorities at the inaugural ECOSOC Financing for Development Forum in New York in April This dialogue process has provided an important opportunity to gather regional momentum, scale up consolidated efforts and recalibrate the regional financial architecture to lay down a solid foundation for supporting implementation of the SDGs. *This report has been issued without formal editing. 3

5 At both the ECOSOC and Incheon high-level meetings, Asia-Pacific ministers, central bank governors, and senior officials, including representatives from the private sector and civil society, underscored the importance of addressing the challenges and priorities of the countries with specials needs, namely, the least developed countries, landlocked developing countries and small island developing States in the Asia-Pacific region, for the implementation of the financing for development outcomes in support of the achievement of the 2030 Agenda for Sustainable Development. In addition, a number of important regional priorities were identified, including: Regional tax cooperation, and the role and framework of the proposed Asia-Pacific Tax Forum. Enhancing financial inclusion and other forms of innovative financing mechanisms. To further support the follow-up process at the regional level, this side event will provide a focused discussion on these two thematic areas. Further elaboration of these priority areas could provide a forward looking action plan to generate regional financing for the 2030 Agenda on sustainable development. II. Contribution to the High Level Political Forum Theme of Ensuring No One is Left Behind These two areas are key elements of financing for development and will have significant implications for achieving the 2030 Agenda in the region and for ensuring that no one is left behind. In this context, the financing for development focused discussions during this side event are expected to make both an analytical contribution to future knowledge products and help identify capacity building areas that will support member States efforts to ensure no one is left behind, particularly in the least developed countries, landlocked developing countries and small island developing States. Fiscal revenues play a central role in financing essential infrastructure investment and social and environmental spending. However, it is concerning that a number of countries of the region are still characterized by single-digit tax-to-gdp ratios. For these countries, fiscal revenue enhancement is an urgent task if they are to achieve the SDGs. This objective could be achieved through a three pronged approach which focuses on: the rationalization of public expenditure and elimination of wasteful tax exemptions and 4

6 Introduction subsidies; the optimization of tax structure design; and the strengthening of tax administrations. In this context, it is important to highlight the role of tax cooperation in the region for supporting these efforts. Most recently, at the Financing for Development Follow-Up Dialogue in Incheon in March of 2016, policy makers, central bank governors, and representatives from the private sector and civil society discussed a proposal to create an Asia-Pacific Tax Forum for Sustainable Development that would promote cooperation in tax matters across developing countries in the region. Broad-based, affordable access to financial services has a well-documented link to economic opportunities for the poor. Greater access to financial services benefits the poor enormously by providing households a way to plan for the future and invest in land and shelter, as well as to save and to borrow in emergencies. It also helps MSMEs, startups, young firms and innovative projects obtain business loans that are vital to productivity, competitiveness, and innovation. The level of financial inclusion and its impact on poverty, employment and narrowing the gender gap varies widely across the region. Policies, therefore, need to be mainstreamed to improve full and equal access to financial services for all, with appropriate attention given to financial stability matters. Such policies must promote the development and provision of a broad range of quality financial products and services that are aligned with the needs of different client segments. Furthermore, they must also focus on developing adequate market infrastructure related to national identification, credit information, collateral management frameworks and registries payments. Expanding MSME financing models beyond traditional bank lending to include non-bank financing avenues should also be a priority for member States pursing inclusive financial policies. III. Objectives The objective of the side event on Financing for Development to Ensure No One is Left Behind is to provide a focused discussion on innovative financing sources, modalities and priorities in the Asia and the Pacific region for the implementation of the 2030 Agenda on sustainable development. 5

7 2 Speakers remark

8 Introductory remarks Ms. Shamshad Akhtar, Under-Secretary-General of the United Nations and Executive Secretary of ESCAP (Moderator) After welcoming the participants to the side event, Ms. Shamshad Akhtar stated that achieving the Sustainable Development Goals (SDGs) in the Asia-Pacific region requires an investment of between 5 and 10 per cent of GDP, or approximately $2.1 trillion to $2.5 trillion per year. As no single source of finance or approach can meet this challenge in isolation, all countries must strengthen their public financial management by tapping all public funding sources and reorienting expenditure to leave no one behind. To achieve this, structural weaknesses in tax policy and low tax collection rates, especially in Asia-Pacific developing countries, must be addressed. In particular, Ms. Akhtar emphasized that rethinking domestic resource mobilization calls for consideration of the following six elements: 1. Taxes, if not structured effectively, can negatively affect efficiency and long-term growth; 2. Tax regimes in the region can be regressive as personal and corporate income tax coverage and compliance is low. As a result, the tax burden in a number of countries falls disproportionately on those in lower-income brackets; 3. Many Asia-Pacific developing countries impose high corporate income tax rates, however, the tax base is eroded through ineffective tax incentives; 7

9 4. With rising inequalities and delays accumulating in achieving the objective of leave no one behind, countries must examine the distributional effects of their tax regimes; 5. Least developed countries have limited prospects for resource mobilization and require the international community to scale-up ODA flows, which could enable them to further leverage private funding. It is essential to remember that what ultimately matters is not the impact of any tax instrument in isolation, but the combined impact of all such measures. Ms. Akhtar then discussed the importance of strengthening financial inclusion, stating that to ensure that no one is left behind; a strong political commitment to provide banking services is required to the more than two billion adults without access around the world. In conclusion, Ms. Akhtar, indicated that to fully deliver on the promises of the 2030 Agenda and leave no one behind, effective regional cooperation and enhanced South-South flows are needed to promote innovative and inclusive finance. ESCAP, as the primary intergovernmental and policy coordination platform for the Asia-Pacific region, will continue to support its member States in building capacities for this purpose. 8

10 Speakers remarks Welcome remarks Mr. Oh Joon, Ambassador Extraordinary and Plenipotentiary Permanent Representative, Republic of Korea Ambassador Joon noted that this High-level Political Forum (HLPF) marks the first annual review of implementation since the adoption of the 2030 Agenda. The theme, "Ensuring that no one is left behind," is a fundamental principle of the SDGs and represents the commitment to share growth and prosperity among all groups and individuals. Financing for development constitutes an essential part of the implementation of the 2030 Agenda. Ambassador Joon acknowledged that through the First High-Level Dialogue on Financing for Development, held in Incheon in March 2016, the Asia-Pacific region has taken the lead in implementing the Addis Ababa Action Agenda. He further noted that the 72nd Commission session of UN ESCAP, in May 2016, reaffirmed the commitment of its member States to financing development and emphasized the importance of science, technology and innovation (STI), an area in which the region has a growing strength. Ambassoder Joon acknowledged that Asia and the Pacific, representing a diverse range of countries, has always been a distinct region providing a source of growth, innovation and dynamism for the global community. However, as he pointed out, the diversity of the region presents challenges related to capacity and development gaps in the implementation of the 2030 Agenda. Given this, Ambassador Joon underscored the importance of the region working collectively to maximize development potential and turn financing challenges into opportunities. In particular, the region can enhance its domestic resource mobilization by realizing its tax potential, nurturing the private sector and encouraging the development of science, technology and innovation. 9

11 In the context of his country, Ambassador Joon stated that the Republic of Korea is ready to support regional efforts in implementing the 2030 Agenda and financing for development. The country has embarked on an innovative partnership with the private sector, the Creativity Technical Solution programme, and it will implement the Science, Technology and Innovation for a Better Life initiative, which will provide 200 million dollars between 2016 and 2020 to developing countries to build their R&D capacity and enhance linkages with business opportunities. In conclusion, Ambassador Joon acknowledged the timeliness of the side event and emphasized that follow-up processes on SDG implementation and the mobilization of resources should be closely inter-linked and create synergy. Panel discussions Ms. Akhtar served as the moderator for the panel discussion. She introduced the panelists and proposed three questions to be used as points of discussion: 1. What are your countries resource requirements for achieving the Sustainable Development Goals? How do you plan to finance them? 2. What tax reforms are currently under way and are planned in your country? How does your country want to increase tax-to-gdp ratio and for that matter address the inequalities of the taxation system? 3. What is your vision for financial inclusion? What are your country s plans in that area? What kind of incentives does your country offer to stimulate private investment to provide financial services to households and firms that have no access to such services? 10

12 Speakers remarks Mr. Wayne Swan, Member of Parliament and former Deputy Prime Minister and Treasurer, Australia The address of Mr. Swan mainly focused on tax policy with regard to sustainable development. He began by saying that significant reforms are necessary for implementing the 2030 Agenda for Sustainable Development, while noting that no area in public policy is more challenging than direct resource mobilization, particularly tax policy. Changes in tax policy bring out vested interests, and will always face resistance. In reforming the tax system, the design is a key element, but equally important is how it is legislated and how it is received by society as a whole. Mr. Swan indicated that he is an ardent supporter of establishing an Asia-Pacific Tax Forum, which would foster cooperation and consultation on important tax matters. Such a mechanism would be critical for avoiding the mistakes that have been made in the developed world in setting tax policy, which has led to massive tax evasion and loopholes, both of which have put a damper on inclusive growth. In fact, he noted that a recent report of the IMF indicated that the tax policies of the United States had resulted in a trend towards regressive taxation rather than progressive taxation. Going forward, he said, the main challenge for the Asia-Pacific region is deciding the right tax how revenue can be most efficiently and equitably raised. The next step is to determine how much revenue is needed to be competitive and drive fundamental economic growth, but also adequately fund health and education. Specifically, as Asia and Pacific is unique in terms of country sizes and economies, the region needs its own unique approach. Ultimately, a fair system needs to be put in place that is transparent and devoid of loopholes. A fair tax system is critical to driving growth and leaving no one behind. 11

13 Mr. Gamini Jayawickrama Perera, Minister of Sustainable Development and Wildlife, Sri Lanka Mr. Perera began his talk by explaining the difficult task the relatively new government is facing related to finance. It came to power with large debts resulting from excessive spending from the previous regime. Every sector of the economy, including the rural sector, receives money from the Government. However, he said that changes are in the works. For Sri Lanka to develop, tax and social reforms are needed. The Government has signed an agreement to manage the financial system in a way that helps foster the achievement of sustainable development. This agreement places better understanding on the needs of the people. Specifically, Mr. Perera indicated that his ministry is supporting the Government to work in stages to develop all sectors and emphasized that this development should come through the people. He also acknowledged that funds are needed to create jobs. Finally, he affirmed that members of Parliament and local bodies are currently working on medium and long-term plans aimed at achieving sustainable development. 12

14 Speakers remarks Mr. Teimuraz Murgulia, First Deputy Minister of Environment and Natural Resources Protection, Georgia The address began with Mr. Teimuraz explaining that development in Georgia is highly integrated with the green economy. He asserted that this does not just entail building an extra layer of green, but also completely redefining how development is achieved. Increasingly, as he pointed out, countries are moving beyond solely focusing on economic growth and instead are targeting moving towards a green economy. Mr. Teimuraz stated that Georgia actively started to work towards achieving the SDGs before they were formally adopted in During the preparatory stage, the country was setting up development agenda plans, which included key direction for budgets based on the government s vision. Small and medium-sized enterprises (SMEs) and climate change have been focal areas of the government. He acknowledged that even though Georgia has small and medium financial structures and microfinance institutions, it has been difficult to channel resources to SMEs. Notably, the country has been active in responding to climate-related activities of SMEs. The country has, over the years, become a reference country for climate change adaption, as it places high priority on renewable energies and hydropower. Through this, the country hopes to attract international development funds. Mr. Teimuraz noted that tax reform is also critically important for Georgia and highlighted that the country has been working on developing an optimal tax model. Currently, Georgia has one of the lowest rates of taxation, and, as he explained, they are working on setting up a distribution system to allocate tax revenues towards achieving the necessary outcomes for social responsibilities. 13

15 Finally, Mr. Teimuraz touched on advances in public expenditure transparency measures, the concerted efforts of the government to work with civil society organizations, and plans to channel funds to SMEs to promote innovation and capacity. Ms. Rosemarie G. Edillon, Vice Minister and Deputy Director-General of the National Economic and Development Authority, Philippines Ms. Edillon spoke about efforts in the Philippines directed towards financing the implementation of the 2030 Agenda. While the aspect of financing the implementation is relatively new to the country, the foundations for doing so were laid down in the previous government s administration, which is currently being implemented by the newly elected government. These foundations focus particularly on good governance with an emphasis on government expenditure and budgeting, as well as tax reform. Regarding the latter, following the success of the Tax Reform Law of 2013, which resulted in a large increase in tax collection based on indexed taxes, the country is working to simplify taxes further. The increased revenue from the Tax Reform Law of 2013 enabled the Government to substantially increase the funding of universal health care. Another area covered in her address was public-private partnerships (PPPs). She said financing done through this mechanism in the Philippines has freed up fiscal space for spending on education and health. Notably, the budget for health services tripled between 2009 and About $34.8 billion have been made available for PPP projects, with $6.7 billion already awarded. Ms. Edillon also noted that most of the funds allocated in the national budget for infrastructure are directed to projects outside the capital as such projects in Metropolitan Manila can be funded through PPPs. 14

16 Speakers remarks Ms. Edillon affirmed that a comprehensive tax reform is being developed. Confirming that the reform will be revenue positive, she noted that is is likely to include greater sin taxes and changes to individual and corporate income taxes. Ms. Edillon also pointed out that earlier this year, in the last days of the previous administration, an act covering tax incentives and transparency had been passed. Under this act, the government agency in charge of incentives must report to Congress annually on the incentives offered and indicate their costs and benefits to society. In her concluding remarks, Ms. Edillon acknowledged the role of financial inclusion in the national strategy of the Philippines and noted the executive order of the former president to institutionalize the country s financial strategy. Mr. Nguyen The Phuong, Vice Minister of Planning and Investment, Viet Nam In his remarks, Mr. Nguyen stressed the importance of regional cooperation on taxation in the proposed Asia-Pacific Tax Forum. This would enhance capacities to mobilize the financial requirements for achieving the 2030 Agenda. He noted that a financial strategy for the 2030 Agenda entailed developing a healthy finance system, and that such a system would: 1. Ensure financial security as well as macroeconomic and monetary stability; 2. Facilitate growth and the restructuring of the national economy; 3. Effectively solve social welfare issues; 4. Result in the efficient and equitable management of obligations as well as the utilization of national financial resources and inclusive reforms; 5. Ensure efficiency with regard to financial supervision and management. 15

17 Regarding Viet Nam, Mr. Nguyen said that the country s ratio of taxes accounted for 20.9 per cent of GDP, which is average for the region. The government taxation policy continues to assess risks associated with lower taxes and fees, especially after joining bilateral and multilateral trade agreements. However, he noted that to ensure balance in the State budget, the Government must focus on the following three things: 1. Strengthening efforts against tax evasion; 2. Developing policies; and, 3. Nurturing future tax revenue sources. Mr. Nguyen acknowledged the initiatives of the Association of Southeast Asian Nations (ASEAN) aimed at fostering regional financial arrangements. He noted that the Working Committee on Financing Inclusion, which was established to facilitate financial inclusion in the ASEAN region, reflects the commitment to considering financial inclusion as a policy priority and pillar of the master plan for ASEAN connectivity by Finally, Mr. Nguyen emphasized that more efforts must be directed towards mobilizing additional financial resources. Each country shares common responsibilities with different magnitudes subject to each country s conditions. The developed countries in the Asia-Pacific region should remove barriers and provide more trade incentives to developing countries. He concluded by expressing the hope that cooperation in economics, in general, and finance, in particular, will help the region become dynamic and prosperous with a bright future. 16

18 Mr. Odo Tevi, Permanent Representative to the United Nations and former Governor of the Reserve Bank, Vanuatu To achieve the SDGs, Mr. Tevi indicated that an inclusive economy was needed. He acknowledged that implementing the 2030 Agenda for Sustainable Development requires domestic resources and then reviewed the economic status of Vanuatu. The country was set to graduate from least developed country status in 2015, but the devastating effects of Cyclone Pam, which afflicted the country in March 2015, resulted in the graduation being delayed. The target for graduation is now In terms of resource mobilization, Mr. Tevi, said the country is facing considerable challenges, as its taxation system is based on indirect taxation. It must improve its tax potential, which, in general, will be difficult to do. The Asia-Pacific region needs to coordinate efforts in this area, particularly with regard to tackling tax evasion. Organizations, such as ESCAP, can play a role in such efforts. In his concluding remarks, he stated that in order to mobilize domestic resources and attain financial inclusiveness, complementary policies dealing with issues related to, for example, communications or technology, are critical, along with macroeconomic stability. He recognized that success in achieving the SDGs is a long way off and that there are many challenges that lie ahead, however, as he emphasized, inclusive economic growth is needed and it must be ensured that the poor participate in the success. 17

19 Ms. Bhumika Muchhala, Senior Policy Analyst, Finance and Development, Third World Network Ms. Muchhala spoke on behalf of civil society organizations. She stated that notwithstanding the adverse outcomes and challenges from the three recently held international financing for development conferences, there is still potential to ensure that development finance is founded on being people-centred and non-regressive as well as on sustainable development principles. Regarding taxation, she indicated that the proposal by ESCAP for an Asia-Pacific Tax Forum would be a constructive step in coordinating regional tax administration reforms. In that regard, she offered the following three recommendations from civil society: (a) Implement tax measures that stress wealth-based taxes, such those on income, estate and inheritance, and at the same time, be clear about regressive taxes; (b) Focus more on addressing illicit funds; (c) Push for an intergovernmental global tax body to deal with governance and tax issues. Ms. Muchhala stated that the outcome of the High Level Follow-Up Dialogue on Financing for Development appears to focus on domestic tax revenue, which is unfortunate from the perspective of civil society as more focus should also be given to international sources. In discussing financial inclusion, she stated that wealth-functioning national development should play four key roles in implementing sustainable development: 18

20 Speakers remarks 1. Filling financing gaps; 2. Taking on a counter-cyclical role, especially during times of financial crises 3. Mobilizing broader financial resources; 4. Stimulating a dynamic strategy for structural transformation. As a final note, she stated that in line with the surge in PPPs in the region, civil society organizations are concerned about safeguards and human rights regulations. This should be discussed and negotiated within the United Nations and led by member States in order to formulate principles and criteria for PPPs in accordance with internationally agreed commitments and principles. 19

21 3 Programme

22 18 July 2016 (01:15-2:45 PM) Delegates Dining Room, United Nations, New York 12:45-1:15 Registration and lunch 1:15-1:25 Introductory remarks Ms. Shamshad Akhtar, Under-Secretary-General of the United Nations and Executive Secretary of ESCAP [Moderator] 1:25-1:30 Welcome remarks Mr. Oh Joon, Ambassador Extraordinary and Plenipotentiary Permanent Representative, Republic of Korea 1:30-2:30 Panelists Mr. Wayne Swan, Member of Parliament and former Deputy Prime Minister and Treasurer, Australia Mr. Gamini Jayawickrama Perera, Minister of Sustainable Development and Wildlife, Sri Lanka Mr. Teimuraz Murgulia, First Deputy Minister of Environment and Natural Resources Protection, Georgia Ms. Rosemarie G. Edillon, Vice Minister and Deputy Director-General of the National Economic and Development Authority, Philippines Mr. Nguyen The Phuong, Vice Minister of Planning and Investment, Viet Nam Mr. Odo Tevi, Permanent Representative to the United Nations and former Governor of the Reserve Bank, Vanuatu Ms. Bhumika Muchhala, Senior Policy Analyst, Finance and Development, Third World Network 2:30-2:40 Open discussions 2:40-2:45 Closing remarks 21

23 4 List of participants

24 LIST OF PARTICIPANTS Member States Khan Alamycin, Director, Ministry of Economy, Afghanistan Riaz Siddiqi,Seddiqi, Senior Advisor, Ministry of Economy, Afghanistan Farclous Asevn Rahrnse, Advisor, Permanent Mission to the UN, Afghanistan Wayne Swan, Member of Parliament and former Deputy Prime Minister and Treasurer, Australia Yanara Chhieng, Minister attached to the Prime Minister and Secretary General of Cambodian Rehabilitation and Development Board, Cambodia Ivane Shamugia, Government Administration of Georgia Javad Momeni, Counsellor, Mission of Iran Ruslan Buttrikao, Minister Counselor, Mission of Kazakhstan Ahmed Sareer, Permanent Representative, Permanent Mission to UN, Maldives Midhfa Naeem, Counsellor, Permanent Mission to UN, Maldives Nauman Bhatti, Counsellor, Permanent Mission to UN, Pakistan Glady Brojan, Advisor, Permanent Mission to the UN, Philippines Namki Kim, First Secretary, Republic of Korea Konstantin Kulikov, First Secretary, Permanent Mission to the UN, Russian Federation Niluka Kadurugamuwa, Minister Counsellor, Permanents Mission to the UN, Sri Lanka Uchita de Zoysa, Sustanainable Development Advisor, Mission of Sustainable Development and Wildlife, Sri Lanka Chulamanee Chartsuwan, Ambassador and Deputy Permanent Representative, Permanent Mission to the UN, Thailand Hoang Nga, Deputy Director General, Ministry of Foreign Affairs, Viet Nam 23

25 Other Entities, Private Sector, Experts and CSOs Katsuji Imata, President, Global Call to Action against Poverty (GCAP) Japan Samuel Zan Akologo, Executive Secretary, Caritas Ghana Justina Okogun, Executive Director, Safe Womb International Foundation Alexandra Mathew, Executive Director, TMG Think Tank Sustainable Yvonne Bendinger, Executive Director, European American Chamber of Commerce Jeffrey Sachs, Special Advisor to the UN Secretary-General and Director of the Earth Institute, Columbia University Tetet Lauron, Chair, Board of Governors, Asia Pacific Research Network Aaron Etra, Chair, Council of Organizations, United Nations Association of the USA Leslie Wright, UN Committee Chairman, Zonta International Rubina Hussain Farooq, UN Committee Chairman, Zonta International Lori Johnston, Chair, Securities Investor Protection Corporation Maria Theresa Nera-Lauron, Co-chairperson, CSO Partnership for Development Effectiveness Rathin Roy, Director, National Institute of Public Finance and Policy, India Madu Dissanayake, Director, Public Affairs & Policy, IPPF SAR/FPASZ Gomer Padong, Development Cooperation & Advocacy Director, Philippine Social Enterprise Network Marta Benavides, Director, S.E.R.R. Saba Loftus, Director, Eat Foundation Jasmine Tolbert, Director, Social Impact, Liberty Global Impact Anne-Marie Abaagu, Director, Women Environmental Programme Grove Hams, Director, Temple of Understanding Klaus Heider, Director General, BMEL Anita Nayar, Director, Regions Refocus Farida Valiullina, Director for Women Rights, ELSA Erlinda Carones, Director IV, Social Development Strategy, National Economic & Development Authority Anand Kumar, Country Manager, Christian AID UK, PAC India, India 24

26 List of participants Eva Hanlstuenge, Policy Officer, Bread for the World Marevic Parcon, Asia Pacific Programme Officer, Women s Global Network for Reproductive Rights Evelyn Tuube, Programme Officer, Women Environmental Programme Ali Jilani, Programme Coordinator, Shirkat Gah Wolfgang Obenland, Programme Coordinator, Global Policy Forum Kathryn Tobin, Policy Coordinator, Regions Refocus Lyn Hensle-Hirsch, UN Representative, International Federation of Business and Professional Women Anita Thomas, Representative, Virginia Gildersleeve International Fund Celine Paramunda, Main NGO Representative, Medical Mission Sisters Teresa Kohura, NGO Representative, Sister of Charity Federation Philo Kattan, Additional NGO Representative, Sisters of Charity Federation Asanti Lakre, Additional NGO Representative, Sisters of Charity Federation Denison Jayasooria, Ripess Asia/ ASEC Katherine Kline, Volunteer UN Representative, Stakeholder Group of Agency UN Agencies and Bodies Shamshad Akhtar Under-Secretary-General of the United Nations and Executive Secretary Economic and Social Commission for Asia and the Pacific Gyan Chandra Acharya, Under-Secretary-General of the United Nations and High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States Aynul Hasan, Director, Macroeconomic Policy and Financing for Development Division, Economic and Social Commission for Asia and the Pacific Amr Nour, Director, Regional Commission New York Michael Williamson, Head, Office of the Executive Secretary, UN Economic and Social Commission for Asia and the Pacific 25

27 Sudip Ranjan Basu, Officer-in-Charge, Countries with Special Needs Section, Macroeconomic Policy and Financing for Development Division, UN Economic and Social Commission for Asia and the Pacific Krishera Shorua, Senior Economist, UN Department of Economic and Social Affairs Susanna Wolf, Senior Programme Officer, UN Office of the High Representative for Least Developed Countries Thangavel Palanivel, Senior Strategic Advisor, UNDP Asia Pacific Grigor Agabekian, Economic Affairs Officers, UN Department of Economic and Social Affairs Peter Chowla, Economic Affairs Officers, UN Department of Economic and Social Affairs Brian Bogart, External Affairs Officer, World Food Programme Michael Joyce, Programme Manager, UN Capital Development Fund Jasmine Jaruphand, Planning and Coordinator Lead, UNSDG Action Campaign Mohammad Younus, Advisor, UN Development Programme Asia Pacific Stanislav Saling, PR & Public Affairs, UN Development Programme Asia Pacific Gail Hurley, Policy Specialist, UN Development Programme Richard Bailey, Policy Specialist. UN Development Operations Coordination Office Wei Liu, Coordinator, IATT, UN Department of Economic and Social Affairs Nahae Kim, Post Analyst, UN Population Fund Barry Herman, Visiting Scholar, New Scholar of Department of Economic and Social Affairs Quynh Anh Pham, UN Environment Programme 26

28 5 s Infographic

29 Enhancing Tax Cooperation Join in on the conversation and follow us #MPFD/#APFFD/#HLPF Visit ESCAP website for further information: LOW TAX REVENUE Asia and the Pacific Sub-Saharan Africa Latin America and the Caribbean OECD 14.8% 16.3% 17.1% 33.8% KYRGYZ REP. 3.7 PAKISTAN 0.3 WHO IS GAINING FROM TAX INCENTIVES CONVERGENCE? tax holiday/exemption max. tax holiday years reduced tax rate investment allowance/ tax credit R&D incentives super deductions SEZ discretionary TAJIKISTAN 13.3 MONGOLIA 31.6 BANGLADESH 2.0 MYANMAR 0.8 INDIA 3.0 THAILAND 14.4 MALAYSIA 23.0 SINGAPORE 33.4 Source: World Bank (2015). East Asia Pacific Economic Update, October 2015: Staying the Course. Washington DC: World Bank. CAMBODIA INDONESIA LAO PDR MALAYSIA MYANMAR REP. OF KOREA 40.0 INDONESIA 8.3 ARE PEOPLE PAYING TAXES? PAPUA NEW GUINEA 0.3 Registered taxpayers for individual 2011 income, % of total population negotiable 11 4 MOVING TOWARDS: ASIA-PACIFIC TAX FORUM PHILIPPINES SINGAPORE THAILAND VIET NAM 28

30 Infographics Encouraging Long-term Infrastructure Finance Join in on the conversation and follow us #MPFD/#APFFD/#HLPF Visit ESCAP website for further information: Emerging Financing Institutions Existing Financing Institutions Nippon Life (JP) Sumitomo Mitsui Trust Bank (JP) Zenkyoren (JP) Dai-ichi Life (JP) Mitsubishi UFJ (JP) Other Govt. Pension Investment (JP) Central Provident Fund (SG) Local Govt. Officials (JP) National Social Sevurity Fund (CH) National Pension (ROK) Other China Investment Corp. Government of Singapore SAFE Investment Company (CH) Temasek (SG) HK Monetary Authority Other THE REGION NEEDS $30 TRILLION IN INFRASTRUCTURE THROUGH TO 2030 Asian Infrastructure Investment Bank New Development Bank DEPLOYING INSTITUTIONAL INVESTORS Asset Management Funds Pension Funds $100 billion $100 billion $40 billion Asian Development Bank World Bank ASEAN Infrastructure Fund Sovereign wealth funds $ billions Source: ESCAP, based on data from Towers Watson, The world s 500 largest asset managers, 2013; Towers Watson, The world s 300 largest pension funds, 2013; and OECD and SWF Institute, Sovereign wealth fund ranking. Available from Silk Road Infrastructure Fund Eurasian Development Bank SAARC Development Fund Pacific Region Infrastructure Facility 9.7% 26.3% 44.8% % of world 29

31 Deepening Capital Markets Join in on the conversation and follow us #MPFD/#APFFD/#HLPF Visit ESCAP website for further information: % 4.9% CAPITAL MARKET SIZE $38 TRILLION $21 TRILLION DEBT SECURITIES STOCK MARKET CAPITALIZATION LOCAL CURRENCY DENOMINATED BOND MARKET GREW RAPIDLY DEVELOPED COUNTRIES DEVELOPING COUNTRIES $17 TRILLION Domestic bonds issued: annual rate increment Asia-Pacific HARNESSING INNOVATIVE FINANCING 2013 ±1.8 trillion 1 trillion billion Islamic capital markets offer huge potential BANK-BASED FINANCING DOMINATES THE REGION Capital market depth (% of GDP) Asia Japan Emerging Asia China World European Union United States Stock Market Capitalization Total Debt Securities Source: IMF (2013), Global Finance Stability Report, Statistical Appendix, Table 1 Bonds & Equities Bank Assets Bonds, Equities, and Bank Assets

32 Infographics Mainstreaming Financial Inclusion Join in on the conversation and follow us #MPFD/#APFFD/#HLPF Visit ESCAP website for further information: +14% % % South Asia poorest 40% richest 60% 490 million 625 million LARGE DISPARITIES IN ACCESS EXIST IN THE REGION EXPANDING FINANCIAL ACCESS TO THE POOR 37% 61% FINANCIAL INCLUSION CLOSING THE GENDER GAP 51% 74% Source: The World Bank (2014) Global Findex Database. Available from: East and South-East Asia 40% 24% Small Non-Asia 51.5 Medium Asia 34.5 Large +14% % % SIGNIFICANT PROGRESS IN EXPANDING ACCOUNT OWNERSHIP CREDIT CONSTRAINS SME GROWTH (%) Non-Asia 31.8 Asia 15.4 Non-Asia 71.0 Asia 49.7 % 71% 67% 55% 58% 52% 37% Source: Freeman, Nick (2015). Financing Small and Medium Sized Enterprises for Sustainable Development: A View from the Asia-Pacific Region. MPDD Working Paper WP/15/05. Available from: 31

33 Taking Action on Climate Finance Join in on the conversation and follow us #MPFD/#APFFD/#HLPF Visit ESCAP website for further information: BETWEEN 2005 AND ,625 REPORTED DISASTER EVENTS PEOPLE LOST 500,000 THEIR LIVES BILLION WORTH OF ECONOMIC DAMAGE $523 C 512 REPORTED DISASTER EVENTS 177,000 DEATHS: 3 PER 100,000 PEOPLE Source: ESCAP (2015) Disasters without Borders Regional Resilience for Sustainable Development. Available from: IS THIS THE RIGHT MIX? Climate finance is focused on mitigation efforts, bias towards renewable energy WHO IS GETTING THE FUNDS? Asia-Pacific share of global REGION NEEDS $10 TRILLION IN CLIMATE FINANCING THROUGH TO 2030 WHO IS CLOSING THE CLIMATE FINANCING GAP? C PUBLIC PRIVATE 148 PUBLIC PRIVATE billion Source: Buchner, B. K., Trabacchi, C., Mazza, F., Abramskiehn, and D. Wang (2015). Global Landscape of Climate Finance. Venice: Climate Policy Initiative. MULTILATERAL AND NATIONAL CLIMATE FUNDS 93% mitigation investments 33% Source: Climate Funds Update (2015) Available from: % climate finance flows in % 53% 21% 17% 9% USD $3522 million LDCs LLDCs 2.0 billion SIDS Rest of Asia-Pacific Region 32

34 Infographics Strengthening South-South and Triangular Cooperation Join in on the conversation and follow us #MPFD/#APFFD/#HLPF Visit ESCAP website for further information: SOUTH-SOUTH COOPERATION IS GROWING DAC Countries $ LDCs LLDCs PIDS Rest of Asia Million USD 2014 TOTAL OF USD $135 BILLION USD $30 BILLION 29% 5% 22% 28% 38% Total ODA in the region, Republic of Korea $ China $3.401 India $1398 HOW MUCH IS ASIA-PACIFIC GETTING FROM DAC? WHO IS RECEIVING IT? LDCs Least Developed Countries LLDCs Landlocked Developing Countries PIDS Pacific Island Developing States Rest of Asia-Pacific Total ODA (Official Development Assistance) from DAC countries in Asia - Pacific, USD millions Source: OECD Stats (Table Total flows by donor DAC1). Available from Indonesia $56 Russian Federation $876 Thailand $69 Turkey $

35 Economic and Social Commission for Asia and the Pacific ESCAP ESCAP is the regional development arm of the United Nations for the Asia-Pacific region. ESCAP is committed to a resilient Asia and the Pacific founded on shared prosperity, social equity and sustainability. Its vision is to be the most comprehensive multilateral platform for promoting cooperation among its 53 members and 9 associate members to achieve inclusive and sustainable economic and social development in the region. Macroeconomic Policy and Financing for Development Division MPFD MPFD aims to foster forward-looking macroeconomic policymaking and enhance opportunities for financing for development for the attainment of the 2030 Agenda for Sustainable Development, with particular attention to Countries with Special Needs (CSN). The highlights of the activities include the following: Analyze and monitor macroeconomic trends and outlook Enhance regional financing for development cooperation Strengthen support for the LDCs, LLDCs and SIDS Produce high-quality knowledge products for capacity building Create consensus for regional partnerships Develop integrated approaches, models and tools The major knowledge products: Economic and Social Survey of Asia and the Pacific Asia-Pacific Countries with Special Needs Development Report Financing for development publications Working papers, discussion papers and policy briefs Macroeconomic Policy and Financing for Development Division MPFD United Nations Economic and Social Commission for Asia and the Pacific Join in on the conversation and follow us #MPFDAP facebook.com/ unescap twitter.com/ unescap youtube.com/ unescap flickr.com/ unitednationescap United Nations Building, Rajdamnern Nok Avenue, Bangkok Thailand tel: escap-mpdd@un.org web: