PHOTO
Beirut - The Arab Forum for Environment and Development (AFED) launched its annual report, Financing Sustainable Development in Arab Countries, during its 11th conference on Thursday November 8 at Le Bristol Hotel in Beirut. AFED’s most recent report takes note of the Arab region’s immense funding gap towards achieving the Sustainable Development Goals and highlights the detrimental effects of long-lasting war and conflict on sustainable development and the region’s economy.
The conference hosted 400 delegates from 40 countries representing governments, regional and international organizations and the private sector. Those present included the World Bank, ESCWA, FAO, the Organization for Economic Co-operation and Development (OECD), the European Bank for Reconstruction and Development (EBRD), the Islamic Development Bank and Kuwait Fund, among others.
AFED report notes that the Arab region needs more than USD 230 billion a year to achieve the Sustainable Development Goals (SDGs). The annual funding gap is estimated at more than USD 100 billion. The report also highlights the losses in economic activity due to the region’s wars and conflicts since 2011, which have amounted to about USD 900 billion. The price tag for achieving sustainable development will likely increase as money will also need to be reserved for reconstruction efforts in war-torn countries.
The report points out the decline of public and private sources of funding in the Arab region. For every dollar entered through foreign direct investment inflows, about USD 1.8 is reinvested abroad, either through direct investment inflows or through the diversion of profits generated by foreign investors. At the same time, the region remains a lender to foreign banks based abroad, with deposits of Arab customers at major international banks consistently higher than loans given to Arab customers from these banks. AFED report calls for reversing this investment into the Arab region, which requires reforming fiscal policies, combating corruption and providing the incentives and facilities to encourage investment and efficient use of resources.
The opening ceremony was addressed by former Lebanese Prime Minister Fuad Siniora, who stressed the need for fiscal reforms and enabling policies to open the way for a green economy in the Arab region.
Taoufik Rajhi, Tunisia's Minister in charge of large-scale reforms pointed out that the new constitution emphasizes the right to a healthy environment. Implementing SDGs had necessitated the development of the Financing Strategy for Sustainable Development in Tunisia, through environmental funds, such as the Pollution Control Fund and the Energy Transfer Fund, public-private partnerships and international financial cooperation.
The conference was inaugurated with a welcome speech by Dr. Adnan Badran, Chairman of AFED Board of Trustees and former Jordanian Prime Minister. He said that “Arab governments are required to efficiently manage human, financial and natural resources, eliminate corruption and establish public-private partnership to achieve sustainable development.”
Najib Saab, AFED’s Secretary General, presented the new report, explaining that “while the previous ten AFED reports identified the status of the Arab environment and proposed solutions, now is the time for implementation, and this requires finding adequate funding sources.”
The AFED Environmental Lifetime Achievement Award was presented to Suleiman Al-Herbish, who ended his 15-year term as Director General of the OPEC Fund for International Development (OFID) just days before the conference.
SESSIONS: DEVELOPMENT FUNDS, PRIVATE SECTOR AND CORRUPTION
Four sessions took place during the first day of the conference, in which the results of the AFED report were presented and the main recommendations discussed.
Representatives of various Arab and international development funds discussed ways of collaborating to mobilize additional resources to achieve the Sustainable Development Goals. A session was devoted to financing sustainable energy, calling for the adoption of new instruments such as green bonds and Sharia-compliant sukuks, and stressing the importance of attracting private sector investment to renewable energy. Business representatives spoke of the trade opportunities offered by the transition to sustainable development, provided that incentives, legislation and appropriate laws are put in place.
The Organization for Economic Co-operation and Development (OECD) held a special session in which it presented a report entitled Investing in Climate, Investing in Growth. It highlighted the positive impact of controlling climate change on advancing sustainable development.
The conference continued on Friday, with sessions on linking financial systems to the Sustainable Development Goals and financing development by fighting corruption. A group of young entrepreneurs presented the strategies they adopt to fund their projects. Another session was held with 50 Arab students from AFED’s Future Environment Leaders Forum (FELF).
At the end of the second day AFED Secretary General Najib Saab cited draft recommendations of the conference, recognizing that the commitment to the Paris Agreement and achieving the Sustainable Development Goals entail huge investments, which in turn require innovative financing mechanisms. As governments alone cannot meet all these needs, the conference called upon aid organizations, development funds, corporations and the banking sector to contribute.
Participants also stressed the need to put in place the necessary laws and legislations to attract aid and investments, and stop waste and corruption. They called for the adjustment of price support systems for the efficient management of natural resources, particularly energy and water, and the development of tax systems to enhance sources of income while ensuring fair distribution of wealth.
The conference recommended the development of feasible integrated strategies and plans, with clear and sequenced priorities for sustainable development goals at the local level, in accordance with a specific implementation schedule, supported by well-prepared feasibility studies. This must be accompanied by the adoption of an appropriate legislative and regulatory framework that will ensure donor confidence.
The conference recommendations will be disseminated to Arab governments and to regional and international agencies.
Full AFED report on Financing Sustainable Development in Arab Countries can be downloaded at www.afedonline.org
© Press Release 2018Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
