NGO’s Need to Adopt Innovative Financing For Development
The concept “innovative financing for development” was first mentioned and introduced at the International Conference on Financing for Development in 2002.
The value of exploring innovative sources of finance provided that those sources do not unduly burden developing countries.” Innovative financing mechanisms were born out of a need to reach the Millennium Development Goals (MDGs) that 192 United Nations member states and at least 23 international organizations agreed to achieve by the year 2015.
Again, In 2014, prominent leaders gathered in Morocco to discuss the importance of national funding for health.
It was agreed that there was need to urgently increase domestic resources and spending funds strategically.
Dr Abdallah The Deputy Executive Secretary of the UN Economic Commission once stated“We cannot just rely on international aid for development, we have to rely on our domestic resource’’. There is need for a multi-sectoral approach for health financing and economic development planning”
One would ask why innovative financing? The reasons may vary according to the Global economic and Financial crisis which may include; Scarcity of resources ( the health sector budget has continued to dwindle, a deficit of over 899m), Ownership, Independence, choices and growing concerns among others.
Principles that Guide innovative financing include; Scaling up Additionality, Complementarity, sustainability and institutional programmatic and financial) Sustainability (Institutional, Programmatic and Financial)
Can we actually achieve Innovative Financing? – UHMG for example looks at New approaches: like Result based Financing, Performance Based Financing, Tax levies for development (AID Trust fund) and new revenue Streams like Private public Partnerships (Alternative Distribution Strategy, 3Party Logistics, ACTs) (Consultancies (selling your niche)Corporate Social Responsibility, Individual Philanthropists rallying behind a cause like for the Goodlife Fund.
We also need to look at new incentives which include; Bonds, BuBu among others which build strong relationships beyond money. Conclusively, fostering behavioral change is critical, economics is a behavioral science. It calls for change of mindset from charity to social entrepreneurship. Let us think differently, swiftly, and take charge of our health. We must prioritize and segment our deliberations for maximum output.