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RHSC Financing Mechanisms Workstream A « Mobilizing Additional Dollars » Phase I

RHSC Financing Mechanisms Workstream A « Mobilizing Additional Dollars » Phase I. Dr. Wolfgang Bichmann, KfW Consultant: Sandra Rolet RHSC Meeting Bonn, October 19-20, 2006. SSG focus on “Better $ “ & on “More $”.

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RHSC Financing Mechanisms Workstream A « Mobilizing Additional Dollars » Phase I

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  1. RHSC Financing MechanismsWorkstream A« Mobilizing Additional Dollars »Phase I Dr. Wolfgang Bichmann, KfW Consultant: Sandra Rolet RHSC Meeting Bonn, October 19-20, 2006

  2. SSG focus on “Better $ “ & on “More $” • Origin: Den Haag & Seattle meetings - (Gates Foundation Mercer Study / DFID studies) • Agreement to support further work • Gates Foundation proposed two workstreams, as above • Gates Foundation pursued “Better $” (McKinsey) • BMZ/KfW offered to support “More $” (This study / Phase I)

  3. Phase I study - Findings • The specificity of RH commodities supply • Changes on the development finance scene / Possible sources of new finance • Extensive review of “innovative development finance” potentially relevant for RHCS • What it takes for the RHSC to make progress in raising additional $

  4. Specificity of RH Commodity SuppliesMore at stake than money & … …Absence of a dedicated global RH instrument … Pros & Cons Coalition members express reserves

  5. Wide choice of approaches to fit different situations and constraints • Raising large amounts √Working on small scale • Requiring political support √ More “ready to go” • Fit for one single situation √ For a larger swat of countries • Feasible for sophisticated, cohesive group of countries √ Accessible to the poorest Each solution has its logic, development fit, cost-benefit ratio and specific requirements

  6. It is a time of opportunity for the RHSC • Overall need is there • ODA architecture more “dynamic” • Innovation “in” (2006: Year of the pilots) • New partnership and alliances possible

  7. Before an option can be chosen, a few key issues need resolving • Where would the RHSC like this to go: What would the $ be for? To fill which gap? Objectives need to be narrowed down into a compelling agenda • Where would the additional $ go? • To the Coalition itself? • To one or several members? • To one country or to a group of countries? • Elsewhere? • Championing the cause: Through which channel would the financing option be pursued? Would the Coalition itself champion the effort?

  8. Suggestion for next steps… • RHSC and SSG to reflect/confirm fundamental strategic choices (Previous slide) • Small ad hoc SSG sub-committee (with financial leaning) to interact with consultant on choice of route to fit these choices • RHSC to pursue short-term opportunities in the meantime (Ex: Air ticket tax)

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