High Level Political Forum Side Event Financing for Development to Ensure No One is Left Behind 18 July 2016, 1:15-2:45 pm Delegates Dining Room United Nations, New York Financing for Development Infographics
Enhancing Tax Cooperation 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 income, % of total population 9 20 10 10 5 6 negotiable 11 4 MOVING TOWARDS: ASIA-PACIFIC TAX FORUM PHILIPPINES SINGAPORE THAILAND VIET NAM 2011 2014
Encouraging Long-term Infrastructure Finance Existing Financing Institutions THE REGION NEEDS $30 TRILLION IN INFRASTRUCTURE THROUGH TO 2030 Emerging Financing Institutions Nippon Life (JP) Sumitomo Mitsui Trust Bank (JP) Zenkyoren (JP) Dai-ichi Life (JP) Mitsubishi UFJ (JP) Asian Infrastructure Investment Bank New Development Bank DEPLOYING INSTITUTIONAL INVESTORS 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 Asset Management Funds Pension Funds $100 billion $100 billion $40 billion Asian Development Bank World Bank ASEAN Infrastructure Fund Sovereign wealth funds 0 1000 2000 3000 4000 5000 6000 $ 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 www.swfinstitute.org Silk Road Infrastructure Fund Eurasian Development Bank SAARC Development Fund Pacific Region Infrastructure Facility 9.7% 26.3% 44.8% % of world
Deepening Capital Markets 16.8% 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 2005-2013 Domestic bonds issued: annual rate increment Asia-Pacific HARNESSING INNOVATIVE FINANCING 2013 ±1.8 trillion 1 trillion 2003 200 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 93.5 43.7 35.5 82.9 75.7 132.9 Total Debt Securities 249.2 42.0 43.2 128.9 179.4 205.7 Source: IMF (2013), Global Finance Stability Report, Statistical Appendix, Table 1 Bonds & Equities 342.7 85.7 78.7 211.8 255.1 338.6 Bank Assets 233.8 175.9 213.0 167.9 291.6 94.9 Bonds, Equities, and Bank Assets 576.5 261.6 291.7 379.7 546.7 433.5
Mainstreaming Financial Inclusion +14% 2011 32% 2014 46% South Asia poorest 40% richest 60% 490 million 625 million LARGE DISPARITIES IN ACCESS EXIST IN THE REGION 37% 61% FINANCIAL INCLUSION CLOSING THE GENDER GAP EXPANDING FINANCIAL ACCESS TO THE POOR 51% 74% Source: The World Bank (2014) Global Findex Database. Available from: http://datatopics.worldbank.org/financialinclusion/ East and South-East Asia 40% 24% 55% Small 37% Medium Large 58% 52% +14% 2011 55% 2014 69% SIGNIFICANT PROGRESS IN EXPANDING ACCOUNT OWNERSHIP CREDIT CONSTRAINS SME GROWTH (%) Non-Asia 31.8 Asia 15.4 Non-Asia 51.5 Asia 34.5 Non-Asia 71.0 Asia 49.7 % 71% 67% 2011 2014 2011 2014 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: www.unescap.org/ourwork/macroeconomic-policy-development/financing-development.
Taking Action on Climate Finance BETWEEN 2005 AND 2014 1,625 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: http://www.unescap.org/resources/asia-pacific-disaster-report-2015 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 137 193 PUBLIC PRIVATE 148 PUBLIC PRIVATE 2013 2014 243 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: http://www.climatefundsupdate.org/data 1.6 2012 % climate finance flows in 2014 81% 53% 21% 17% 9% USD $3522 million 2.2 2013 2014 LDCs LLDCs SIDS 2.0 billion Rest of Asia-Pacific Region
Strengthening South-South and Triangular Cooperation SOUTH-SOUTH COOPERATION IS GROWING DAC Countries $137.222 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, 2014 2010 11102 9957 1471 5575 Republic of Korea $1.857 2011 11773 10645 1750 5810 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 2012 12242 10290 1791 3610 2013 2014 14785 8664 1753 5192 11468 8528 1510 8725 Total ODA (Official Development Assistance) from DAC countries in Asia - Pacific, USD millions Source: OECD Stats (Table Total flows by donor DAC1). Available from http://stats.oecd.org/index.aspx. Indonesia $56 Russian Federation $876 Thailand $69 Turkey $3.591
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 include: 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 For further information, please visit our website: http://www.unescap.org/events/apffd-nyc-hlpf or contact us: Email: ESCAP-MPDD@un.org Tel: +66 288 1636 Join the conversation and follow us @ #MPFD/#APFFD/#HLPF facebook.com/ unescap twitter.com/ unescap youtube.com/ unescap flickr.com/ unitednationescap