Reform and innovation of UN financing mechanism and China’s role in international development assistance

WAN Tailei1 ZHANG Shaotong

(1.International Cooperation Department, National Association of Financial Market Institutional Investors)

【Abstract】The sustainable development goals of the UN have created great demand for funds for the global development systems, including the United Nations Development System (UNDS). However, global development financing now suffers from a huge funding deficit. Meanwhile, the global development financing is shifting from being dominated by bilateral official development assistance (ODA) to a new landscape in which multilateral aids, South-South cooperation, as well as private and philanthropic funding participation have played an equally important role. To respond to those new trends and challenges, the UNDS has actively sought to reform by adjusting the distribution of its strategic and financial functions and strengthening coordination between different institutions within the UNDS. This article summarizes several important goals and measures of the UNDS reform. It analyzes the innovative attempts by the UNDS and the international community, including strengthening cooperative mechanism, building international financing facilities, designing innovative financing instruments, promoting new forms of debt relief, and encouraging social impact investment. As the UNDS reform deepens, China can conduct in-depth research into relevant opportunities and problems to (1) raise the international influence of China’s assistance; (2) balance economic growth with social, educational and civil development for assistance recipients; (3) expand assistance into new and cooperative channels; (4) leverage multilateral platform to play a positive role in debt reliefs for developing countries; and (5) provide prudential responses to emerging problems during the reform process, and enhance risk prevention capabilities for development assistance.

【Keywords】 sustainable development goals; development assistance; UN Reform; blended finance; debt relief;

【DOI】

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(Translated by SU Fang)

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This Article

ISSN:1007-0974

CN: 11-3799/F

Vol , No. 01, Pages 77-88+7

January 2019

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Article Outline

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Abstract

  • 1 Background of the reform of the UN development financing mechanism
  • 2 Main objectives and measures of UN financing reform
  • 3 Practical exploration of financing coordination and innovation in the UN System and the international community
  • 4 How should China get involved in international multilateral development assistance under the new circumstances
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