The world needs $ 4.5 trillion annual spending on sustainable development

0601 2016
The United Nations estimates that the world needs investment ranging between 3.3 trillion and $ 4.5 trillion a year to be able to finance the implementation of sustainable development goals.

And as a means to meet these enormous needs, working the international development community is currently developing new financing tools focus on achieving results, some of them seeking to capital mobilization of untapped knowledge in the private sector, while at the same time transfer of global economic and social challenges into opportunities.

It can invest socially responsible, which has been witnessing a global growth over the past decade, to face the global challenges of development-minded business leadership required and desirable and dynamic sector Acial.tad bonds developmental impact of development bonds and social development impact of the more items that have recently entered the market exciting and brighter.

Development and use of social impact bonds usually in the developed countries where the government pays to investors, while in the case of bonds, the development impact of development, the donors or institutions are the ones who are paying for investors despite the fact that a combination of government and donors is also possible.

Instead of the government or a donor-funded projects directly, the private investors first start funding the initiative, and do not get on their investments unless the social and economic results achieved agreed. This method prevents the development challenges to be an opportunity to invest rather than to be a problem.

It also moves the focus from inputs to performance and results, then where is the private sector interested in the restoration of its investments and to ensure the use of the highest degree of efficiency and productivity by private sector service providers who are in charge of implementing the project.

And bonds of social development impact is not bonds the traditional sense customary, in the sense that they are not guarantees of religion yield a fixed rate of interest until such maturity, but instead are considered tools similar to equity paid to investors on the results that are achieved basis. It also features the highest risk of potential yield levels compared to conventional bonds.

Al Dustour 2016