Innovative Financing for Development
What’s at Stake with Regards to Innovative Financing for Development for “Rio +20”
Innovative Financing for Development (IFD) was born from an observation. The funds allocated by States as Official Development Assistance (ODA) will not be sufficient to achieve the Millennium Development Goals. Mentioned for the first time at the UN Financing for Development Conference in Monterrey (2002), IFD has since been recognized as providing more stable, more predictable, and more sustainable mechanisms for generating resources supplementing traditional ODA.
To date, the innovative financing implemented has already mobilized nearly six billion dollars of additional stable and predictable funding.
The Rio +20 Conference should provide the opportunity to continue the UN debate on this topic.
France was behind the initiative creating a Pilot Group regarding IFD in 2006. This platform for discussion and information exchange, which brings together, on an informal basis, pioneer states in the search for IFD, international organizations and NGOs, is now the main forum for discussion and proposals regarding IFD.
In Rio, France will carry a strong message on the occasion of a high-level event organized with the 63 countries in the Pilot Group and the UN. International personalities will present innovative financing success stories. It will also be an opportunity to present all the options discussed during the G20 meetings: market mechanisms, security instruments, civic contributions or taxes on global activities which include the tax on financial transactions.