THE IMPORTANCE OF POOL FUNDING FOR FINANCING SUSTAINABLE DEVELOPMENT GOALS

Abstract

This paper is devoted to the research of the effectiveness of pool funding as a scientific concept and practical approach to finance sustainable development goals at international and national levels. The essence of the concept is grouping together funds of different economic agents in order to increase the financial capacity and to minimize risks in financing sustainable development goals.According to authors' research, this approach is particularly relevant for countries with transition economies or developing countries, where most of the sustainable development goals are unsolved and require significant resources to finance them. The institutional and economic mechanism for implementing such approach is the creation of national Pool Funds for financing sustainable development programs. A prerequisite for the creation of such funds is the development of a national strategy for financing sustainable development programs in accordance with socio-economic realities and the possibilities of involving various economic agents and partners in the joint financing of programs to provide a secure future for the next generations. Other important prerequisites for the foundation of Pool Funds for sustainable development are: determination of sources of accumulation of financial resources; selection of effective and adequate financial instruments; conducting control of purposeful use of funds and determination of socio-economic effect from financing of projects and programs of sustainable development. According to this approach it will contribute to the concentration and unification of sources and mechanisms for financing sustainable development programs at the national level, as well as for monitoring the use of funds for their intended purposes.