Support to Integrated National Financing Frameworks (INFFs) in SIDS

Integrated national financing frameworks (INFFs) can help countries design and deliver financing solutions that can support the achievement of national sustainable development objectives, and a sustainable recovery. Since INFFs were first introduced as part of the Addis Ababa Action Agenda, interest in them has grown steadily. The international community has responded by developing tools and providing funding for national reform efforts.  In the last two years, the Inter-agency Task Force on Financing for Development (IATF), led by the United Nations Department of Economic and Social Affairs (UNDESA), has published a series of guidance materials to support INFF implementation. Governments in over 80 countries are working with UN Country Teams, UNDP and other UN system agencies to implement INFFs. The COVID-19 pandemic and its economic fallout have further heightened interest in INFFs, with several countries adopting them in support of recovery plans. With a view to complementing the implementation support provided by partners, UNDESA is proposing a targeted support program for sustainable development and SDG Financing in 4 Small Island Developing States (SIDS), as part of the DESA-led Financing for SIDS (FINS Initiative). DESA’s work is complementary to UNDP country support, providing high caliber integrated experts who work in country, as well as tailored mentoring support and training at the regional and global level. This in-depth support both addresses the special needs of SIDS and will serve as a basis for refining and developing global analytical work. The SIDS work will thus be levered to support implementation of INFFs across a wide group of countries. INFFs can help SIDS develop effective and comprehensive frameworks for financing sustainable development and the SDGs at the country level, by considering all types of finance (i.e., public, private, domestic, and international) in a risk-informed manner. Initially, three African SIDS (Guinea Bissau, Mauritius, and Seychelles) expressed interest in receiving support on financing for sustainable development under the DESAled FINS initiative. To obtain support under the project, the government entity in charge of overseeing and coordinating the design of the financing strategy and its alignment with the country’s national development priorities (most usually the Ministry of Finance), in coordination with other relevant core Ministries as appropriate, must send a formal request for support to UNDESA through the UN Resident Coordinator Offices (UNRCOs).  As of August 2022, Mauritius and Seychelles have sent formal requests of support for the development of an integrated national financing strategy to UNDESA. This was the product of substantive exchanges with country officials that were facilitated by the UNRCO, UN country teams (UNCTs) and benefitted from engagement with other development partners such as UNDP.  Country selection for the project is a continuing process and conversations are well underway with other SIDS with similar levels of interest and political backing for INFF operationalization, such as the Dominican Republic and Vanuatu.