LocationsLaunch of Integrated National Financing Framework and the Inclusive Insurance and Risk Finance Initiative for Thailand
Formulating Thailand’s Integrated, Risk-Informed Strategy to Finance Sustainable Development
April 25, 2023
High-level representatives and stakeholders at the launch event
Bangkok, April 26 2023: The Integrated National Financing Framework (INFF) is a tool to help countries strengthen planning processes and overcome existing impediments to financing the SDGs. It helps countries develop a strategy to increase investment and achieve priorities identified in a country’s national sustainable development strategy. The United Nations Development Programme (UNDP) has supported more than 86 countries around the world in formulating INFFs. In parallel, UNDP, through a flagship initiative entitled the Insurance and Risk Finance Facility (IRFF), is leveraging expertise from the insurance industry in managing and reducing risks and provides policy advice, tools, methodologies & partnerships to strengthen the resilience of both country and communities to socio-economic, health, climate and other shocks.
In Thailand, UNDP is working with the Ministry of Finance and the National Economic and Social Development Council (NESDC) in formulating the INFF, which presents an integrated financing strategy for development—a combination of public and private financing policies and instruments that will lead to improved management of available resources and mobilization of additional resources to finance SDG-aligned priorities at national and sub-national levels, including for the 13th National Economic and Social Development Plan (2023-2027).
Further, under a tripartite agreement among UNDP, the German Federal Ministry for Economic Cooperation and Development (BMZ) and the Insurance Development Forum (IDF), UNDP is collaborating with the Ministry of Finance, the NESDC, the Department of Disaster Prevention and Mitigation, the Office of Insurance Commission, the Thai General Insurance Association, and insurance industry members of the IDF to safeguard the progress towards the achievement of the SDGs and promote the development of innovative insurance products and services for vulnerable people and communities, while investing in the long-term transformation of insurance markets.
Against this backdrop, the Development Finance Assessment (DFA) was conducted to identify financing needs for supporting the country’s development priorities and advancing its progress towards the SDGs, including the following thematic priorities: (1) promoting equality, gender equality, and enhancing social protection, (2) tackling climate and environmental issues, (3) fostering job creation in the transition towards green and inclusive development, (4) strengthening the health sector, and (5) harnessing digital finance for sustainable development. The DFA report lays out a basis for a holistic financing strategy for the INFF, which synergizes a wide range of tools—from tax and budget to public debt, incentives, and financial instruments—and match different types of financing to their most appropriate use.
In addition, UNDP commissioned a diagnostic study on inclusive insurance and risk finance for Thailand. The report not only underlines challenges and opportunities but also emphasizes the need to promote inclusive insurance and risk financing strategies in support of different phases of disaster risk management and highlight areas where UNDP can, together with partners, develop and deploy specific solutions relevant to the country context.
Mr. Arkhom Termpittayapaisith, Minister of Finance delivering the key note speech at the launch event
Mr. Arkhom Termpittayapaisith, Minister of Finance, stated, “Achieving sustainable development is a key pathway towards Thailand’s inclusive development on the economic, social, and environmental aspects. Doing so requires cooperation and participation from all stakeholders, which would lead to concerted actions, including financial support.
…I would like to emphasize the importance of the integrated national financing framework, inclusive insurance, and disaster risk management in ensuring the achievement of sustainable development, upholding the “Leave No One Behind” principle.”
Mr. Renaud Meyer, Resident Representative, UNDP Thailand shares his remarks
Mr. Renaud Meyer, Resident Representative, UNDP Thailand, added that "UNDP is pleased to collaborate with the Ministry of Finance, the NESDC, and other public and private stakeholders in formulating the Integrated National Financing Framework (INFF) to establish a holistic approach that leverages public and private, domestic and international finance for advancing Thailand’s sustainable development. We are grateful to the Ministry of Finance, the NESDC, the Department of Disaster Prevention and Mitigation, the Office of Insurance Commission, the Thai General Insurance Association, and the members of the Insurance Development Forum for their collaboration on supporting the ecosystem to develop inclusive insurance and risk finance solutions in Thailand as part of the integrated financing framework. This will help mitigate the impact of risks on people, particularly the poor and most vulnerable populations who are often hit the hardest. We hope that this holistic approach to development finance will translate into a galvanization of capital flows, pathways for collaboration, and, most importantly, greater impact on the country’s SDG-aligned development priorities. With this work, Thailand is becoming one of the pioneering UN member states to formulate a risk-informed integrated financing strategy for sustainable development."
Ms. Gita Sabharwal, the UN Resident Coordinator in Thailand shares her thoughts at the launch event
Ms. Gita Sabharwal, the UN Resident Coordinator, said "the collaboration between UNDP and the Ministry of Finance is expanding the horizons of SDGs financing, and will strengthen Thailand’s overall financing framework for transformative growth. Thailand has excelled in mobilizing financial resources for ESG-related initiatives with both government and the private sector having raised US$10 billion over the past years. Momentum is building behind the idea of sustainable finance, and the two new initiatives launched today, are a guide to better understand, quantify, disclose, and manage the risks and opportunities in future investments and sustainability-linked bond frameworks by governments, banks, and corporations."
In light of this, the Launch today showcased the results of both studies and facilitate the dialogue among stakeholders on financing Thailand’s sustainable development agenda and scaling the role of insurance and risk finance to strengthen the country’s resilience amid future shocks.
The Development Finance Assessment for Thailand can be accessed via: LINK
The summary of the Country Diagnostic on Inclusive Insurance and Risk Finance for Thailand can be accessed via: LINK
The full report of the Country Diagnostic on Inclusive Insurance and Risk Finance for Thailand can be accessed via: LINK
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Minister of Finance. UN Resident Coordinator and UNDP Resident Representative at the launch event
