Development Finance Impact Project for Togo

Development Finance Impact Project- Digital Artifact on Togo Development Specialization Proposal on financing Solution for Unlocking Finance Opportunities Introduction This artifact or article is a project which is part of an online course – Financing for Development- which is being run by the World Bank and edx.org. Countries are unequally endowed with resources whether natural or human. Some countries are poor or developing while others are rich or developed. All countries can be said to be neighbors. The success of each neighbor is also the success of others. In the world today, there is no peace without development. Executive Summary The earth is one of the planets inhabited by human beings. The world population of about seven billion are situated in various countries. These countries have geographical boundaries which have resulted from discoveries, wars, politics or some historic reasons. The activities in one country affect the other countries. These countries share resources such as the oceans, atmosphere, air etc. An activity in one country that causes climate change can affect people in another country. This concern has led to interventions like the League of Nations, UNO and programmes like MDGs and SDGs all aimed at making the world a better place. This article is aimed at an audience comprising governments, IDA, Multilateral Development Banks, the private sector and individuals who can help to unlock finance opportunities for development in Togo. Profile of Togo Togo is a Sub-Saharan Franphone country situated along the coast of West Africa. It shares borders with Ghana to the west, Burkina Faso to the north, and Benin to the east. It has an area of about 56,785 square kilometers and an estimated population of 7.3 million. The country was granted independence by France in 1960. Togo is the 5th world producer of phosphate but it remains a poor country which depends largely on foreign aid. The Togolese are generally hardworking people. They are mainly farmers, artisans, fishermen and traders. Before 2005, Togo has had almost 38 years of undemocratic and human rights abuses. But the situation has improved. Development Challenges The country has some development challenges. Togo was unable to achieve six of the eight MDGs. As at the end of 2015, the country had registered progress only in universal primary education and the control of HIV/AIDS. There is the need to increase efforts in terms of achieving the seventeen Sustainable SDGs in Togo. In particular, the business climate remains challenging and efforts need to be made to scale up all 10 Doing Business indicators. According to a World Bank Report on the Internet, “the key development challenges for Togo as stated in the country’s poverty reduction strategy include: (i) developing sectors with strong growth potential; (ii) strengthening economic infrastructure; (iii) developing human capital, social safety nets, and employment; (iv) strengthening governance; and (v) promoting a more balanced, participatory, and sustainable development.” (http://www.worldbank.org/en/country/togo/overview) Clearly, there are challenges in Togo. It is for this reason that this artifact is making a proposal for development partners to come on board to offer solutions to the challenges in Togo. Why development partners should be part of solutions Domestic public resources from taxation and grants, assistance from ODA and OECD, IDA as well as large amounts of investable resources, mostly private, can be mobilized and allocated to support the achievement of the SDGs in Togo. The private sector window of the International Development Association (IDA) which provides fund for poor countries will be useful. Private business has eyes on profit but it can deliver profit and development impact simultaneously. An improvement in the infrastructure can bring about economic growth which can lead to a multiplier effect in the economy. This can improve the environment for doing business. The private sector is also concerned with risks. Measures such as reliable, legal and cross-party contracts, co-financing and blended financing of infrastructure projects can help. Current main obstacles likely to obstruct unlocking financing opportunities The main obstacles include: 1. Lack of capacity to collect tax efficiently. 2. Corruption which facilitates tax evasion. 3. A narrow tax structure. 4. Lack of provision to disclose illicit financial cash flows. How proposed solutions can overcome these obstacles The following measures can be taken: 1. The government of Togo should provide an enabling environment for private businesses, particularly good infrastructure. 2. The economy should be managed well so that inflation and interest rates are low. 3. The government should strengthen transparency and accountability in public expenditures. 4. Provision should be made in Togo for fairly cheap credit, venture capital etc. 5. There should be a system of monitoring and evaluation of development projects. 6. A strong agency should be set up to coordinate the government’s role in the project. 7. Some citizens should be given technical expertise about data collection and processing using technology and innovation. Conclusion Togo is faced with many development challenges. This artifact proposes that an impact project be carried out to unlock financing opportunities for overcoming the challenges so as to achieve the SDG goals. Author: Emmanuel Ahugah