Role of DFIs in attainment of the goals of the SDGs Harvard Case Solution & Analysis

Role of DFIs in attainment of the goals of the SDGs Case Solution

Introduction

United States Sustainability Development Summit of 2015 has evolved agenda for the sustainable development of 2030. The agenda undermines set of 17 Sustainable Development Goals (SDGs). These plans carry purpose of highlighting and resolving problems of Poverty, Inequality, Injustice and Climate change challenges globally. Hence, this report discusses role of Development Financial Institutions (DFI) in the achievement of Sustainable Development Goals.

Role of Development Financial Institutions (DFI) in Resolving Poverty

Development Financial Institutions (DFI) DFIs of any country are consisted of private and government sectors both. Sometimes they work on the assigned role of them and sometimes they work together as per instructions of the government. Moreover, financial aid from the abroad does not have to deal with any of the domestic DFIs in order to resolve certain issues. Financial institutions have to develop investment supporting programs as the private asset for example machineries and factories. In the case exception can be that if owner receives financial return for the investment that would have the dominance on risk-adjustment with capital cost. Furthermore, private investors thus give response to private returns instead of social returns. Thus, price signals affect to the private incentives and are not aligned with the public incentives.

Corrective pricing however remains necessary that can affect many cases in order to encourage the private investments. Usually markets do not consider the needs of the poor people. If it comes to meet the necessities of the poor will not be simply associated to correcting prices. Purchasing power of power remains zero. Poor people are not able to pay cost for the necessity of services in their lives. Moreover, they are also not able to finance the businesses toe escape out of the poverty.  Furthermore, they remain reluctant for the investment due to interest rates. However, micro financing has mitigated the effect of the situation to the some extent. But the other necessities are required to be considered like health, infrastructure, education, agriculture and vice versa.

In addition, governments of under-developing countries are able to recognize investment on the necessities like health, water system, education or infrastructure development. However, bond and banks market do not provide sufficient capital. Furthermore, capital market remains hesitant to invest in the under developing or non-developed countries due to the risk of insolvency inherent to them. However, in previous years a significant trend of investment in poor countries has been seen. Consequently, overall volumes have remained insufficient to meet the requirements of SDGs. Moreover, inefficiencies and inequitable both has resultant. The poor countries have remained trapped to the poverty while public domestic investment can minimize the [poverty and the world would flooded with the liquidity and seeking of capital will be good return.

The necessities of the life including food, healthcare, early development of childhood, education, employment or job training are the basic right of the every member of a society. This should be delivered to them without discrimination of rich or poor of the society. These are the merits goods that are also termed as the basic human needs. The basic human needs have remained center for the many of Sustainable development Goals in different countries that are undeveloped and underdeveloped. These are also enriched with the focus of Universal Declaration of Human Rights. Hence, in order to adequate supply of these necessities of the life public financing is critical. For poor countries Development Financial Institutions (DFI) should contribute in order to accommodate basic needs of the life.......................

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