- HBR Summary. Infrastructure investment can not only combat the poverty of today — it has the potential to stave off the poverty of the future. And yet only $6 billion of private infrastructure investment went to the world’s poorest countries between 2010 and 2019 — that’s less than 1% of the total $1.1 trillion invested during that period.
- UN’s 2009 report “Rethinking Poverty”.
- “It is important to remember that all poverty is local.”
- To understand an individual’s locality is to understand why that person lives, and could continue to live, in a state of poverty.
- More than public sector action, we need innovation that incentivizes investors to direct capital towards promising infrastructure projects in low-income countries.
- Just as importantly, we need data innovation, beyond the data regarding commercial viability of projects.
Genioux knowledge fact condensed as an image
- All poverty is local. But all prosperity is local as well. The path to prosperity is only as sound as the infrastructure it is built upon. It is time for private investment, and the global financial system, to demonstrate this fact.
- UNCDF is already piloting innovations.
- Along with United Cities and Local Governments and the Global Fund for Cities Development, UNCDF has launched an international municipal investment fund to deliver private and public finance to locally-based infrastructure projects in developing and least-developed countries — with a target capitalization of EU 350 million at first closing.
Category 2: The Big Picture of the Digital Age
[genioux fact produced, deduced or extracted from HBR]
Type of essential knowledge of this “genioux fact”: Essential Deduced and Extracted Knowledge (EDEK).
Type of validity of the "genioux fact".
- Inherited from sources + Supported by the knowledge of one or more experts.
Authors of the genioux fact
ABOUT THE AUTHORS
David Jackson is the director of the local development finance practice at the United Nations Capital Development Fund (UNCDF). David Jackson, a British national, has over 30 years of experience in Local Development. In the 1980s, he worked in London local government on the plan for employment, affordable housing and open space along the River Thames, including the park that became the site of the London Eye. He spent the 1990s in Mozambique for the United Nations Capital Development Fund (UNCDF), where he designed and piloted a national system of local government finance for capital investment that was taken to scale by government. Returning to the United Kingdom in 2001, he ran a consulting company supporting local development in over 10 African and Asian countries through governments, the World Bank and other clients. David rejoined the UN in 2006, serving as Decentralisation Advisor to the Government of Indonesia and UNDP, where he was instrumental in developing the UN support to the local government reforms in Aceh province following the Indian Ocean Tsunami and the Peace Agreement. Jaffer Machano is the global programme director of municipal investment finance at the United Nations Capital Development Fund (UNCDF). Jaffer Machano is the Global Programme Manager for the Municipal Investment Finance programme of UNCDF. Jaffer oversees the UNCDF initiative charged with increasing the capacity of local governments to address key urbanization challenges through access to sustainable sources of capital financing. Before joining Standard Chartered Bank, Jaffer worked for Tanzania Investment Bank, a local investment bank, and Barclays Bank Tanzania. Jaffer’s experience with the United Nations includes serving under the United Nations Development Programme and the UN Peacekeeping Division. His experience in finance also includes working for the Federal Reserve Bank of New York.