Mathur Ritika Passi

Financing the SDGs: The Global Conversation
The only tangible aspect of the current financing mechanism to achieve the SDGs remains the Overseas
Development Assistance (ODA) architecture (target 17.3), a legacy of the MDG process. While
the MDGs first and foremost justified and defined the contours for international aid, the SDGs have a
broader mandate and are meant to apply universally. There remains an understanding that developed
countries must aid developing nations in finance- and technology-related matters, not only as a nod
to equity, but also because if the next 15 years are to yield successful results, international collaboration
will necessarily from part of the arsenal. Under the ODA architecture, rich nations have pledged
to commit 0.7% of their Gross National Product, a commitment that has been oft-repeated, but not
fulfilled across the board. In 2013, for instance, Denmark, Luxembourg, Norway, Sweden and, for the
first time, the UK, were the only nations to meet the 0.7% target. Arguments exist to what extent ODA
flows have affected development outcomes thus far; in face of the requirement of $75-150 per person
annually to meet the MDGs, of which less than half would have been met by ODA flows, it can be said
that ODA has had a marginal role to play. Yet, it is a key pillar in the SDGs as well, when UN estimates
this time around are to the tune of $172.5 trillion for the next 15 years. Clearly, the proliferation of
goals has not resulted in a proliferation of financial commitments. The inadequate effectiveness of
global processes facilitating action on the ground is further manifest in the dismissal of a proposal on
international tax reform at the Third International Conference on Financing for Development in July.
The discussion on ODA flows is notwithstanding the strong focus, this time, on domestic resource
mobilisation, not only in target 17.1 but across the SDGs. This is understandable, given that in 2011, aid
worth $161 billion was disbursed. The same year, remittances were valued at $341 billion, international
private investment at $928 billion, and domestic private sector investment at $3.7 trillion. Indeed,
ODA flows form negligible components in the budgets of emerging nations like India. Effectively then,
a case can be argued to change the global conversation on global partnerships relating to finance
to remove its dependency on the crutch of aid and instead, focus on more critical criteria, such as
creating equitable trade regimes and global banking norms that facilitate the flow of capital into
infrastructure.
Industrialising, conforming to environmental
thresholds, and developing a culture of
technology and innovation to bridge
development and environment degradation,
in a space where significant proportions of
populations still do not have access to basic
necessities. While transfer of technology
from advanced nations to less advanced
ones has remained a recurring theme, empty
promises by empty shells of institutions
have thus far bolstered Kenny’s argument
that “[d]evelopment progress has always
been primarily about poor people and poor
countries achieving things for themselves.” 15
In the post-2015 development agenda,
technology is one of the twin backbones
specified for implementing the goals. The
word finds mention in several goals (for
instance, regarding financial inclusion,
agriculture, empowerment of women,
clean energy, infrastructure). Building
domestic R&D and technological capacities
is also regularly emphasised. Goal 17 on
strengthening the means of implementation
encourages North-South, regional and
international cooperation on science,
technology and innovation; knowledge
sharing; and transfer of environmentally
sound technologies to the have-nots. Even
though promises of technology transfer
have thus far been severely lacking in
practice (despite, for example, India
stressing it is not looking for technology
handouts but is ready to pay for it needs on
competitive terms), the Addis Ababa Action
Agenda has outlined a new Technology
Facilitation Mechanism to boost
collaboration among various actors to
support the SDGs. Unfortunately, while the
norms and goals are being set at the global
level, the means of implementation of those
goals are not adequately facilitated through
global efforts and processes. The same
process is evident in finance mechanisms for
the SDGs (see box above 16 ).
Where is the Conversation
Happening? Recovering the Local
in Global Regimes
The globalisation of certain environmental
concerns like pollution, as noted in the
beginning of the chapter, saw the political
scaling-up and thus standardisation of
certain local issues. This was accompanied
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