Leaving no-one behind And walking last miles

LDC’s and fragile situations first -Rethinking the use of ODA in line with international trends: fewer aid dependent countries; ODA no longer main driver of development; ODA as « seed money» for the creation of innovative financing; ODA where mostly needed (= where insufficient alternatives exist). -=> Key focus on LDC’s. Recent ILO research paper: to eradicate extreme poverty by 2030, non LDC’s have to commit 0,3% of GDP annually; LDC’s have to commit 3,8% => Belgian commitment/pledge: 50% of ODA to LDC’s.

Leave no resources behind -DRM, improved taxation, remittances, FDI, trade, private sector development and private sector for development -Belgian commitments and initiatives: -Examine the possibilities of waiving tax exemptions (Guinea and other partner countries); -Focus on private sector development with focus on SME’s; -Focus on private sector for development: signing of an SDG Charter by the Belgian private sector (October 2016); -Launch of first Humanitarian Impact Bond with ICRC (World Humanitarian Summit) and possible interest to partner in Development Impact Bonds.

Reach out to the furthest behind -Better understand the barriers faced by the poorest and most vulnerable by: -Rights-based approach (= shared accountability of donors, beneficiary country governments and other stakeholders to the populations) and sustainable and inclusive economic growth (= to the benefit of the entire populations); -Importance of SDG16 and democracy. Political instability and internal conflict potential often goes hand in hand with wavering commitments to democracy. Cfr. also Millennium Declaration: « we will spare no effort to promote democracy and strengthen the rule of law ». -Leave no SDG behind. Results will only be sustainable if synergies and interactions between all goals exist. -Opportunities of new digital technologies.

Taking technology to the last mile -Technology = key enabler for development: SDG9. -Last mile problem: how to get technology to all in LDC’s, given: High cost of investment projects; Absence of regulatory framework conducive to invest in technology; Difficulty to reach out to rural areas and specific groups (women and poor communities); Lack of local capacity and presence of risk perception.

ODA and bridging the last mile -Examples: -Role of investment banks. The Belgian Investment Bank (BIO) funds the construction of telecom towers in DRC, helping to increase the mobile network coverage. EIB: also invests in mobile networks in Cameroon and DRC. -Mobile Money for the Poor (MM4P). In LDC’s, only 14% have access to formal financial services but 42% of the population have mobile phones. Belgium now partners with UNCDF to implement the MM4P program in Uganda with a specific focus on low- income communities. -Leveraging local resources / local capacity building. Partnership between Belgium and UNCDF in Mozambique to increase local fiscal capacity at municipal level => more revenue for local development, energy and agricultural use.

To conclude: -Use ODA as a catalyst for private capital investment through innovative financing (e.g. Belgian-ICRC HIB) -A rights based approach is central. Not ‘accountability between donor and recipient governements’, but to the recipient people; -Digital Technology is a key enabler for inclusive economic growth and development. Donors can help take it to the last-mile.