Private Endowment Foundations
Philanthropic Foundations and Development Co-operation
In 2015, the world set ambitious targets for addressing global challenges, agreeing on the Sustainable Development Goals (SDGs) and the Paris Climate Agreement. The cost of implementing these agreements, however, will be astronomical. Over the next decade, the United Nations (UN) estimates that implementing the Sustainable Development Goals will cost between $50 trillion and $70 trillion; the Paris Climate Agreement will cost over $12 trillion over 25 years. All of this at a time when the Overseas Development Assistance (ODA) is in decline and redirected towards peace and security efforts.
The Global Bank is addressing an ambitious and transformative post-2015 development agenda, including sustainable development goals. This agenda must be underpinned by an equally ambitious and credible means of implementation. The Global Bank has established a holistic and forward-looking framework and is committed to concrete actions to deliver on the promise of that agenda. But with an estimated annual price tag of $3.5 trillion, it's clear that the Global Bank Group alone cannot finance the Sustainable Development Goals to achieve the framework's 2030 targets. With that in mind, the Global Bank Group is cultivating and forming strategic partnerships with all stakeholders within the development ecosystem, including private and philanthropic actors, to step in and step up contribution and development results.
Global Bank recognizes the mobilization of financial resources for development and the effective use of resources are central to the global partnership for development, including in support of the achievement of the internationally agreed development goals. These goals include the Sustainable Development Goals. Global Bank also recognizes the mobilization of national and international resources and an enabling of the national and international environments are key drivers for development.
Global Bank Working with Foundations
There is growing recognition from official aid agencies that private funders and investors, including foundations, are an important part of the global development architecture. In 2011, the Busan Partnership for Effective Development Cooperation, for the first time, identified philanthropy as a significant partner in the development process.
The Global Bank’s strategy emphasizes that building effective and strategic partnerships with endowments, foundations, not-for-profits, and charitable organizations is critical for advancing the Global Bank’s goal to end poverty and hunger and to achieve sustainable development in its three dimensions--promoting inclusive economic growth, protecting the environment and promoting social inclusion.
The Global Bank Group is currently working toward a set of ambitious targets for addressing global challenges—Sustainable Development Goals (SDGs) and the Paris Climate Agreement. The Global Bank Group has established the GBG Philanthropy Platform. Through the Global Bank Philanthropy Platform, the Global Bank Group aims to create a dialogue between the philanthropic sector and public officials, with special emphasis on knowledge and learning, resource mobilizations for development and the creation of partnerships.
Financing for Development
Global Bank is engaging in strategic partnerships for advancing the Global Bank’s goal to end poverty and hunger and to achieve sustainable development in its three dimensions--promoting inclusive economic growth, protecting the environment and promoting social inclusion. Global Bank recognizes it must strengthen its financial capacity to meet the aspirations of its shareholders, mobilize capital at scale, and respond to global development challenges. Global Bank Group addresses these global challenges through strategic partnerships with endowments, foundations, not-for-profits and charitable organizations for Global Bank and Global Bank initiatives as part of a package of fundamental resource mobilization efforts. These strategic partnerships will allow Global Bank to deliver development results more effectively while also sustainably scaling up business operation and efficiencies to meet continuing global challenges. With these fundamental resources, including the capital contributions of its stakeholders, Global Bank Group, will continue to deliver on global public goods and scale up its support in fragile and conflict-affected situations. Each of these measures, whether made separately or jointly, contributes to our shared goal of strong, sustainable, balanced and inclusive growth.
Ron Nechemia the President of the Global Bank Group on behalf of the Board of Governors is inviting and welcoming endowments, foundations, not-for-profits and charitable organizations to partner with Global Bank to develop and mobilize additional support for innovative sources and mechanisms of additional financing, in particular by the Global Bank Innovative Lab for Financing for Development. Global Bank invites endowments, foundations, not-for-profits and charitable organizations to voluntarily join in implementing innovative mechanisms, instruments, and modalities which do not unduly burden developing countries. Global Bank encourages consideration of how existing mechanisms, such as the Global Bank Disaster Risk Reduction and Reconstruction Fund – An Umbrella Trust Fund (the “Trust Fund”, “GB DRRRF” or “DRRRF”), might be replicated to address broader development needs such as fragile and conflict-affected situations, and post-war reconstruction. Ron Nechemia also encourages exploring additional partnerships for innovative mechanisms based on models combining public and private resources such as green bonds, vaccine bonds, triangular loans, pull mechanisms and carbon pricing mechanisms.
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Global Bank welcomes the opportunity to work with endowments, foundations, not-for-profits and charitable organizations, both on resource mobilization issues and on concrete development-oriented projects.
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