Building Block 1
The assessment and diagnostics building block aims to provide a complete picture of national financing needs, available financing sources and the constraints and risks countries face when financing their sustainable development. Assessment and diagnostic activities lay the foundation for the development an effective financing strategy.
Financing needs assessments estimate the cost of implementing national development priorities. Together with findings from the financing landscape assessment (the ‘supply side’), they can be used to develop resource mobilization targets, as a first step toward linking planning and financing processes and developing a financing strategy.
In the context of INFFs, risk assessments aim to bring a risk-informed perspective to financing policy decision-making, with a view to help policy makers better understand, manage and address risks to a country’s ability to sustainably finance, and ultimately achieve, national development objectives.
Binding constraints can relate to economic or market-related factors, policy or regulatory gaps, or institutional and capacity constraints - helping to support more informed decisions. This binding constraints analysis suggests a structured dialogue with local experts and practitioners, along with the use of relevant analytical tools.