Role of DFIs in attainment of the goals of the SDGs Case Solution & Answer

Role of DFIs in attainment of the goals of the SDGs Case Solution

For the progress of infrastructure government institution of finance should play their role.  Although it is critical to determine the needs and formulate plans in order to implement them. However, it can be initiated with the help combination of government and private sectors if government finds insufficient amount to carry on. In addition sometimes government of poor countries require international support in order to carry out investment in the development of infrastructure.

It has also identified that there are two major factors that contribute in the enhancement of poverty. These factors are inequity and climate change.

Role of Development Financial Institutions (DFI) in Reducing Inequity

Inequity deals with the power and wealth in the hands of a few individuals. It leads toward the poverty as the income is distributed unequally and poor get less from the total wealth. Furthermore, usually power is associated with wealth and dominance is the part of the richest people. Hence, poor people have to suffer their lives mainly due to inequality in the distribution of income.   It is very difficult to tackle with the inequality if it has ddimensiontowards roots of the economy. The recent figures depict that the 67 richest people have the wealth equal to bottom half of the humanity. The social problem will arise if the global community will be failed to shrink the widened gap. However, the economy can lift up the bottom community with the appropriate distribution of wealth at the top, middle and bottom of the society.

In order to achieve sustainability growth through inequity reduction the income of the top 10 percent should be not more than bottom of the 40 percent (Joseph Stiglitz, Former Chief Economist to the World Bank). Moreover, world is on the track of ending up a day with $1 poverty but it should be taken at the $2 poverty a day. In order to obtain it the global communities should commit to obtain coverage of universal health.

Since 2000 there has been a sharp increase in inequality worldwide that has undermined poverty reduction and growth efforts. Hence, the intense focus of Sustainable Development Goals is to reduce inequality. The poverty is inherent to the inequity, thus failure to reduce inequity will spoil the engagement of billion dollars to the poverty reduction. Hence, failure of handling inequity will be failure to the Sustainable Development Goals as well. In order to combat with inequity income has remained focus of the economists. The economists have analyzed more equitable spending of government and rather progressive rdistributivetax systems as the critical procedures to tackle with inequity. Government investment into public services like healthcare, education and social protection can be helpful to reduce poverty of the poor people in the community. However, there is a need to critically analyze and formulate the system that can reduce inequity from the society. Moreover, it is required to observe the inequity and its balances in the economy through appropriate measures.

Poor people are not able to get benefit of the growth of the certain factors these factors are inequity in the income, assets, opportunities and access to services. The distribution of the income is unequal in the poor economies that result in no difference among the income at the bottom if the economy grows. Although, the distribution of the income is in accordance with the work that people do but the workers involved in the unskilled jobs are paid very less in the undeveloped economies…………………

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