Q&A with Mohammad Mejbahuddin, Senior Secretary, Ministry of Finance, BangladeshOct 24, 2016
What’s the role of domestic resources in SDG implementation?
There are four relevant financial flows for SDG implementation, domestic public and private and external public and private finances. In most of the countries in the region, except a few LDCs, the share of foreign resources, including the ODA, in the total financial envelope is below 10 percent. Therefore, domestic resources have to be mobilized in much larger volume in order to reach the ambitious SDG targets. Some countries fare not so well as they face challenges, such as archaic tax system, narrow tax base, insufficient law compliance and law enforcement.
What role will ODA play in future?
All financial flows are important for SDGs. ODA is in terms of volume lower than the other sources but it has certain advantages. There is, for example, usually some knowledge transfer linked to ODA programing. Secondly, ODA has a catalytic role - it can mobilize additional domestic and international resources.
How can we mobilize enough resources for SDGs?
Domestic public and private finance will be increasingly important in implementing SDGs. We need to simplify domestic revenue collection, modernize accounting systems, and motivate people to pay taxes. Then, people need to see that the government expenditure benefits them. With these measures in place, domestic resource mobilization can be sustained. The Asia Pacific Development Effectiveness Facility (APDEF) is the only forum in operation able to bring people together to help us come up with a solid discussion on issues and peer to peer learning. We are now looking into developing a plan of actions that will address some of the gaps in countries in the region. With UNDP’s support, APDEF can play an important role in helping countries achieve SDGs.