UNDP confirms importance of microinsurance in new development agenda

Thursday, June 11, 2015
The Microinsurance Network's development coordinator Jenny Nasr attended some of the panel sessions at the OECD Forum in Paris last week, where heated discussions took place around climate change, the Sustainable Development Goals (SDGs) and tackling inequality.
There was unanimous recognition at the Forum that the key events that will take place in the coming months will be a unique opportunity to put the world on an “inclusive and sustainable course”. The momentum is growing for  the adoption of the Sustainable Development Goals (SDGs) in September and the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 21) in December, which will be a challenge for developing and developed countries alike.
Helen Clarke, the UNDP’s administrator, stressed that the new global development agenda requires peaceful and inclusive societies, justice for all and effective, accountable and inclusive institutions at all levels. Strategies for promoting inclusive and sustainable growth were mentioned, namely:
  • Impact investment in communities where the poor live and work, lending to start-ups and strengthening public-private partnerships.
  • Redistributing the benefits of growth through progressive taxation systems, universally accessible and quality services, and social protection.
  • Empowering women, youth, and marginalized communities to be full participants in the economy, society, and politics.
She further highlighted the hopefully bold and ambitious outcome of the upcoming Third International Conference on Financing for Development, in Addis Ababa in July. It is imperative at this stage that Official Development Assistance (ODA) seeks to support capacities for inclusive and sustainable growth, domestic resource mobilization and the attraction of quality loans and investment.
On a separate note, she mentioned the importance of social protection schemes in the new SDGs and how microinsurance plays an important role in poverty alleviation and improving livelihoods.
Angel Gurria, Secretary-General of the OECD emphasized the fact that investments should focus on people. Seven years after the financial crisis in 2008, more than 200 million people globally remain unemployed, with inequalities reaching record levels.  He pointed out that the average income of the richest 10% now represents nearly 10 times the average income of the poorest 10%, compared to 7-8 times a generation ago. Promoting a new wave of investments based on a new set of values like social inclusion and sustainability will demand a set of innovative policies.
During the Climate Change open panel discussions, the role of the private sector and civil society organisations was highlighted. Public-private partnerships will be crucial to shape the implementation of low carbon solution mechanisms such as carbon pricing and adaptation to climate change risks.
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