Economics & Financing Instruments: Promoting Integrated Financing Strategies for SLM
The international development community’s resource allocation patterns are evolving towards country identification of development priorities and leadership. Consequently, the amount of finance available for UNCCD implementation is dependant not only on the political will of governments to identify sustainable land management (SLM) as a national priority, but also on allocation of resources in their national budgets for this purpose.
In response to this changing environment, the GM is developing a Strategic Programme on Economics and Financing Instruments, at the core of which is the concept of integrated financing strategies to support UNCCD processes.
What is an Integrated Financing Strategy?
An integrated financing strategy (IFS) can be defined as a comprehensive, co-ordinated arrangement of various financial sources, instruments and mechanisms, through which to secure sustainable, timely and predictable investments for UNCCD implementation.
An IFS supports increased resource mobilization for SLM by broadening the scope of planning processes beyond specific sectors - increasing interaction with sectors which have not traditionally been part of the UNCCD agenda, and fostering the translation of UNCCD-related development policies into adequate resource allocation in public budgets and expenditure frameworks.
An IFS must clearly be closely linked with the NAP process and be well anchored in the national institutional setting.
An IFS leverages various public and private financial sources – both external and domestic - by recognising their complementary roles and interrelationships. Financial instruments can directly generate or influence financial flows by attracting them or re-directing them, for instance, through fiscal or policy incentives or disincentives.
A financing strategy may also involve financial mechanisms such as Global Environment Facility (GEF); Overseas Development Assistance (ODA) delivery mechanisms; national and international funds and implementation frameworks; and climate change & compensation for ecosystem services (CCES) schemes.
Approach
The programme will be implemented through a series of interventions leading to the development of IFSs. The knowledge and know-how generated during these processes will be used to strengthen the overall concept of IFSs. Concept development can therefore be seen as an integral part of the programme implementation process.
While programme activities emphasize strengthening of national capacities through learning by doing, mentoring and coaching, national capacities to develop and implement IFSs need to be formally strengthened through the design and implementation of training modules on core IFS development issues.
To promote the sharing of good practices and lessons learned in partner countries during the process, the programme will contribute to meetings and policy processes at all levels, with presentations, lectures and publications.
Activities
At country level: current SLM financing will be reviewed, constraints and opportunities assessed through analytical work, and training sessions organized. IFSs will be developed in consultation with national and international stakeholders.
At international level: country experiences will be shared with other countries, generic guidelines for the formulation and implementation of IFS will be prepared, training modules will be developed and recommendations to improve financing for SLM at national level will be formulated.
Work in progress
A conceptual framework for integrated financing strategies is currently being developed which will:
- provide a concise overview of IFSs as a way to support UNCCD processes;
- list the implications and provide concrete recommendations for IFS design; and
- outline the IFS implementation process.
The Programme will support the development and implementation of IFSs in ten partner countries in Africa, Asia and Latin America and the Caribbean. This will involve undertaking assessments and analysis of public financial management, fiscal policy and investments, and aid modalities at national level.
The Programme is currently supporting Brazil, Jordan, Lebanon and Uganda.
The GM is collaborating with FAO Investment Centre, the Overseas Development Institute (ODI) and Oxford Policy Management in developing a training course on Public Financial Management in Agriculture and Rural Development.
The GM is also building knowledge on core IFS-related issues, through applied research on topics such as: Sector-wide Approaches (SWAps); the Highly-indebted Poor Countries initiative (HIPC); Public Financial Management Processes; and Aid Modalities and Instruments and their implications for SLM financing, with partners including ODI, the Global Donor Platform on Rural Development, FAO Investment Centre and Oxford Policy Management.
Expected outcomes
The programme is expected to:
- design a coherent financing strategy for GM interventions at national level;
- increase in-country capacity to develop IFSs;
- develop IFSs and initiate implementation in participating countries; and
- enhance dialogue and knowledge-sharing on financing for the UNCCD both within participating countries and at regional and international levels.
For more information, please contact:
Ms Camilla Nordheim-Larsen, Financial Strategy Officer
Tel. +39 06 5459 2061
c.nordheim-larsen (at) ifad.org
Related Documents
Integrated Financing Strategies for Sustainable Land Management