Sustainable Development Goals

JULIA WALKER is a senior global business executive with 20 years experience in the private sector principally in finance, technology, and risk management. She currently runs market growth and strategy in Asia for one of the world’s largest providers of financial markets data, Infrastructure, and Risk Intelligence and is a member of the United Nations Secretary General’s Task Force of Digital Financing of the Sustainable Development Goals.DR ALMA PEKMEZOVIC is a consultant to the Asian Development Bank, Sydney, Australia. Her key areas of expertise include capital markets law, corporate law and governance, and commercial law reform. During 2006 to 2015, Dr. Pekmezovic taught corporate and commercial law at La Trobe University School of Law, Melbourne, Australia. She was formerly a Lecturer in Law at Bucerius Law School in Hamburg (2015–2018) and a Visiting Research Fellow at the Max Planck Institute for Comparative and International Private Law in Hamburg, Germany.DR GORDON WALKER SJD (Duke) is an Emeritus Professor of La Trobe University; Adjunct Professor at Curtin University School of Law; Visiting Professor, University of Padua Law School, Italy; and an advisor to the Asian Development Bank (ADB) designated as International Business Law Expert and International Financial Sector Expert. His research contracts at the ADB principally involve law reform in the areas of securities regulation, company, secured transactions and FinTech within the Private Sector Development Initiative (PSDI-III) in the South Pacific.

• About the Editors xviiNotes on Contributors xixForeword xxixForeword: Implementation of the SDGs xxxiPreface xxxvIntroduction 1Part One: Overview and Context 9Part Two: Where Will the Money Come From? Financing the SDGs 10Part Three: Technology, Innovation, and Entrepreneurship 12Part Four: Facilitating the SDGs by Legal Infrastructure Reform 15Part I Overview and Context 171 The UN and Goal Setting: From the MDGs to the SDGs 19Alma PekmezovicIntroduction 19What is Development? 20Is There a Right to Development? 22Measuring Economic Development 22Measuring Non-Economic Aspects of Development 23The Sustainable Development Goals (SDGs) 24Situating the SDGs in the International Legal Framework 28Theories of Development: Towards a New Theory of Sustainable Development 29Economic Theories of Development 30Cultural Theories of Development 30Geographic Theories of Development 31Institutional Theories of Development 32A New Theory of Sustainable Development 34Measuring Progress Towards the SDGs 34Conclusions 352 SDGs and the Role of International Financial Institutions 37Suresh NanwaniIntroduction 37Response and Implementation of the SDGs by IFIs 38Project Processing and Actions Taken by IFIs to Implement the SDGs, and Responses from Other Development Actors 44Conclusion and Recommendations for IFIs to Meet SDG Goals and Targets 483 Towards a New Global Narrative for the Sustainable Development Goals 53Iason Gabriel and Varun GauriIntroduction 53How SMART Are the SDGs? 55Goals That Stretch 59Goals That Inspire 62Sloganising the SDGs 64Towards a New Global Narrative? 66Conclusion 694 Overcoming Scarcity: The Paradox of Abundance: Harnessing Digitalisation in Financing Sustainable Development 71Simon ZadekScarcity: The Paradox of Abundance 71Financing: A Systemic Challenge 72Action on System Design 74Digital Financing of the SDGs 76Dilemmas: Digitalisation and Dark Financing 80Sizing the Prize 82What Next? 84Concluding Comments 85Part II Where Will the Money Come From? Financing the SDGs 875 The New Framework for Financing the 2030 Agenda for Sustainable Development and the SDGs 89Alma PekmezovicIntroduction 89Sources of Development Finance 90Domestic Public and Private Sources 90Domestic Resource Mobilisation (DRM) 90International Public and Private Finance 93The Role of International Official Development Assistance (ODA) 94Private Philanthropy 95Sovereign Wealth Funds, Pension Funds, Insurance Companies, and Investment Funds 96Barriers to Greater Private Investment 97The Role of Private and Blended Finance in Development 98The Development Impact and Risks of Blended Finance 100An Overview of Blended Finance Mechanisms 101Innovative Financing Tools: Social Impact Bonds (SIBs) and Development Impact Bonds (DIBs) 102Best Practices for Engaging the Private Sector 105Conclusions 1056 The Contribution of the International Private Sector to a More Sustainable Future 107Martin Blessing and Tom NaratilReady and Able to Invest 108Commercial and Investment Benefits 109What is Needed to Mobilise Private Sector Money? 110Partnerships for a More Sustainable Future 112Partnerships to Rationalise Sustainable Investment Markets 112Partnerships to Democratise Sustainable Investment Markets 1167 Re-Orienting the Global Financial System Towards Sustainability 121Alma PekmezovicIntroduction 121Background 123The Legal and Regulatory Framework 125Company Reporting: Sustainability Disclosure Requirements 128Institutional Investors: Responsible Investing and Investing for Impact 132Fiduciary Duties of Institutional Investors and Other Financial Intermediaries 136Fostering Long-Term Sustainability 140Conclusion 1428 How Asset Managers Can Better Align Public Markets Investing with the SDGs 143Emily Chew and Margaret ChildeWhy the SDGs Could Transform Sustainability Investing 143Implementing the SDGs as an Analytical Framework to Align Investing with the SDGs 145Objectives of Manulife Investment Management’s Approach to SDG-Aligned Investing 145SDG Assessment Methodology Overview 147Investable Themes 147SDG Alignment Assessment 150Exclusions 152Applying the SDG Analytical Framework to the S&P 500 Index 152The Current State of Corporate Goals with Respect to SDG Impact 153The Current Opportunity Capture of SDG-Related Profit Opportunities 156Areas in which Corporate Operational Conduct is Most Strongly Aligned with SDG Impact 159What SDG Developments Can We Expect in the Public Markets Investor Community in 2020 and Beyond? 161SDG-aligned Investing is Expected to Become Easier 162Corporate Reporting on the SDGs Will Improve 163Constructive Dialogue or Engagement with Companies is Necessary to Achieve the SDGs 163A Call to Action 164Disclaimer 1659 The Significance of Sustainable Development Goals for Government Credit Quality 167Alastair WilsonEnvironmental Preservation Influences Credit Quality, Including Through the Impact of Climate Change on Growth and Institutions’ Resilience to It 168Social Risks Such as Poverty and Inequality Feed into Economic and Institutional Strength 170Strong Institutions Are Closely Related to Ratings and Ratings Factors 174SDGs Influence Government Credit Quality Through Different Channels, to Varying Degrees 176Part III Technology, Innovation, and Entrepreneurship 17710 FinTech for Financial Inclusion: Driving Sustainable Growth 179Dirk A. Zetzsche, Ross P. Buckley, and Douglas W. ArnerIntroduction 179Financial Inclusion and Sustainability: Introducing the Long-Term Perspective 180Financial Inclusion: Why It Matters 180Two Sides of the Same Coin 181FinTech as a Tool for the SDGs 181FT4FI Initiatives 183Four Pillars of Digital Financial Transformation 184Experiences and Lessons 184Financial Inclusion Initiatives Since 2008: G20 184Financial Inclusion Initiatives Since 2008: AFI 185FinTech and Financial Inclusion: The Foundation of Digital Financial Transformation 185Pillar I: Digital ID and eKYC: Establishing the Foundation 186Example: The Indian Aadhaar System 186IrisGuard 187Regional Approaches: eIDAS in the EU 188eKYC and KYC Utilities 188Example 1: South Africa Web-Based KYC Database 188Example 2: India’s e-KYC System 188Example 3: eIDAS and eKYC 189Synthesising the Lessons 189Pillar II: Open Electronic Payment Systems: Building Connectivity 189Mobile Money 190Designing Regulatory Infrastructure for an Open Electronic Payments System 191Pillar III: Account Opening and Electronic Government Provision of Services: Expanding Usage 192Electronic Payment: Government Salaries and Transfers 193Electronic Payment and Provision: Other Core Services 194Pillar IV: Design of Financial Market Infrastructure and Systems: Enabling New Wider Development 195Transforming Credit Provision: From Collateral and Microfinance to Cash Flow 195Adding Insurance and Investments to Savings and Credit 196M-Akiba 197Building Better Financial Infrastructure 198The EU Example: GDPR, PSD2, MiFID2 198Developing a Comprehensive Strategy 198Strategic Approach 198The Challenge of Technology 198Regulatory Sandboxes, Piloting, and Test-and-Learn Approaches 199Balancing Inclusion with Other Regulatory Objectives 201Designing Regulatory Systems: The Example of Mexico 201Towards Inclusive and Sustainable Growth 20211 Financing and Self-Financing of SDGs through Financial Technology, Legal, and Fiscal Tools 205Jon TrubyIntroduction 205Self-Sufficient Financing and Achievement of SDGs through Tax Reform 207Shifting the Tax Burden to Create a Double Dividend 207Base Erosion and Digital Services Taxation 208Digitisation of Tax Administration 209Amendment of the Chicago Convention 210Self-Sufficient Financing of SDGs through Financial Technology 212Digitisation of Money 212Digital Identity 214Financing SDG 7 and Related Goals through Financial Technology 215Offsetting Investments in Energy-Intensive Digital Currencies 215Digital Token Investments 216Conclusion 21712 SDG Challenges in G20 Countries 219Guillaume Lafortune and Guido Schmidt-TraubIntroduction 219The SDGs as Problem-Solving Tools for Transformative Actions and Policies 229Long-Term Planning and Back-Casting 230Data and Monitoring 231Financing 232Technology Missions 233Conclusion 23413 The Future-Fit Business Benchmark: Flourishing Business in a Truly Sustainable Future 235Geoff Kendall and Martin RichIntroduction 235The Journey Ahead 236The World We Want 236The World We Have (and How We Got Here) 236The World We Can Create 238Why a Systems View is Good for Business 240A Star to Steer By 243Current Assessment Methods Are Flawed 243Starting with the End in Mind 244How Much is Enough? 244A Holistic View of Future-Fitness 245A Practical Tool 246Future-Fit Break-Even Goals 246Future-Fit Positive Pursuits 248Engaging Stakeholders More Effectively 250Conclusion 25114 Financing for Youth Entrepreneurship in Sustainable Development 253Inna Amesheva, Alex Clark, and Julian PayneThe Role of Young Entrepreneurs in Sustainable Development 253The Needs of Young Entrepreneurs Working on the SDGs 254Barriers to Innovation and Scale 254Supporting Young Entrepreneurs Working on the SDGs 257The Financing Options Available to Young Entrepreneurs Working on the SDGs 258Sources and Instruments of Finance for Young Entrepreneurs 259Bridging the Gap Between Young Entrepreneurs and the SDGs 262Sectoral Coverage 262Geographical Coverage 264Beyond Banks: Alternative Financial Structures for Youth-oriented Sustainable Development Initiatives 266Prioritising Financial Interventions for Youth Entrepreneurs and the SDGs 267Non-financial Services 268Developing a Robust Investment Pipeline 270Designing Youth-focused Funding Vehicles for the SDGs 27115 Transparency in the Supply Chain 275Julia WalkerIntroduction 275Supplier prequalification tools 279Emerging Technology in Supply Chains 281The diamond industry 282Summary 284Part IV Facilitating the SDGs by Legal Infrastructure Reform 28516 Facilitating Sustainable Development Goal 8 by Legal Reform Measures 287Gordon WalkerIntroduction 287Contextual Issues 288Legal Traditions 288Regulators and Policymakers 289Implementation Problems 290Capital Formation for Micro-, Small-, and Medium-Sized Enterprises 291Meta-Strategy: The Promise of e-Government 291The SDGs and Domestic Policy Formation 292Facilitating SDG 8 by Law Reform 293Hong Kong 293Fundraising Law in Hong Kong: A Brief Overview 294Safe Harbours in the 17th Schedule of CWUMPO 295ECF and P2PL in Hong Kong 296Supporting FinTech and MSME Fundraising Solutions in Papua New Guinea 297Survey of Papua New Guinea Legislation 297Offers Excluded from the Prospectus Requirements: CMA, Schedule 6 298Issues Excluded from the Prospectus Requirements: CMA, Schedule 7 299Securities Commission Power to Amend Schedules: CMA, Section 470 299Legal Reform Opportunities for ECF and P2PL in PNG 299Conclusion 30017 Facilitating SDGs by Tax System Reform 303Benjamin WalkerIntroduction 303Sustainable Development Goals 304Goal 3: Good Health and Well-Being 304Goal 8: Decent Work and Economic Growth 304Goal 10: Reduce Inequality within and among Countries 305Goal 12: Ensure Sustainable Consumption and Production Patterns 307Goal 16: Peace, Justice and Strong Institutions 308Goal 17: Strengthen the Means of Implementation and Revitalize Global Partnership for Sustainable Development 309A Wider Picture of Development 310Taxes and Economic Development 310Tax Effort 311Taxes and Spending 312Taxes and Technology 313Blockchain 313Artificial Intelligence 314Tax Law Reform 314Recent Developments 316Conclusion 31618 Facilitating the SDGs by Competition and Consumer Law and Policy Reform: Aspirations and Challenges in Papua New Guinea 317Brent FisseIntroduction 317Proposed PNG Competition and Consumer Reforms and SDGs 318Tailoring Law and Policy to the Particular Needs and Circumstances of PNG 320Removing Statutory and Regulatory Barriers to Entry 322Designing Competition Rules That Are Practical and Avoid Excessive Technicality 324Harnessing Consumer Protection Laws to Protect and Promote Small Business 327Using Enforcement Mechanisms That Have Some Chance of Working in PNG 329Conclusion 331Resolution Adopted by the General Assembly on 25 September 2015 333Transforming Our World: The 2030 Agenda for Sustainable Development 333Preamble 333People 334Declaration 335Introduction 335Our vision 336Our shared principles and commitments 336Our world today 337The new Agenda 339Means of implementation 344Follow-up and review 346A call for action to change our world 347Sustainable Development Goals and targets 347Goal 1. End poverty in all its forms everywhere 349Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture 350Goal 3. Ensure healthy lives and promote well-being for all at all ages 351Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all 352Goal 5. Achieve gender equality and empower all women and girls 353Goal 6. Ensure availability and sustainable management of water and sanitation for all 354Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all 354Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all 355Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation 356Goal 10. Reduce inequality within and among countries 357Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable 357Goal 12. Ensure sustainable consumption and production patterns 358Goal 13. Take urgent action to combat climate change and its impacts 359Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development 360Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss 361Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels 362Goal 17. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development 363Finance 363Technology 363Capacity-building 364Trade 364Systemic issues 364Means of implementation and the Global Partnership 365Follow-up and review 369National level 371Regional level 372Global level 372Index 375

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