Broad-based Financing for Development

Broad-based Financing for Development – Increasing financing for development cooperation as a joint effort between the public and private sectors and civil society (Opens New Window) (42 pages, PDF, 1,5 MB)

Changes in the international operating environment – such as climate change, economic, food and energy crises, and other global security threats – have stepped up the debate on both the goals of development policy and the future of development financing.

Traditional Official Development Assistance alone is not enough to attain development goals. Governments must encourage new types of partnerships between the public and private sectors and civil society actors. Governments must seek new sources of financing in both the private and the public sector so that the internationally adopted development goals can be achieved. With respect to Official Development Assistance, Finland is committed to giving 0.7 per cent of the gross national income as Official Development Assistance annually by the year 2015.

The concept of broad-based financing for development rose to the fore at the International Conference on Financing for Development, held in Monterrey in 2002. The view of broad-based financing for development as part of global partnership was reaffirmed at the follow-up conference in Doha in 2008.

In April 2010, Minister for Foreign Trade and Development Paavo Väyrynen appointed an official working group to chart means for increasing partnerships between the public and private sectors and civil society and for expanding the base of development financing (the decision to appoint the working group is enclosed as Appendix 1).

The working group’s concrete recommendations to the Government are listed in Chapter 7. The report also contains other proposals for consideration.