UNDP Jobs - 49937- International Consultant on Islamic Finance and Im

International Consultant on Islamic Finance and Impact Investing

Location :

Home-based

Type of Contract :

Individual Contract

Starting Date :

01-Oct-2014

Application Deadline :

25-Sep-14 (Midnight New York, USA)

Post Level :

International Consultant

Duration of Initial Contract :

30 working days upon signature of the contract between 01.10.2014 and 11. 11.2014

Languages Required :

English

Expected Duration of Assignment :

UNDP is committed to achieving workforce diversity in terms of gender, nationality and culture. Individuals from minority groups, indigenous groups and persons with disabilities are equally encouraged to apply. All applications will be treated with the strictest confidence. UNDP does not tolerate sexual exploitation and abuse, any kind of harassment, including sexual harassment, and discrimination. All selected candidates will, therefore, undergo rigorous reference and background checks.

Background

The Istanbul International Center for Private Sector in Development (IICPSD) is the United Nations Development Programme (UNDP) global organization mandated to leverage the role of the private sector in development. The IICPSD was established in Istanbul, Turkey on the basis of the Partnership Framework Agreement1 signed between the Government of the Republic of Turkey and the United Nations Development Program in March 2011. The center is one of the six global thematic centers of the UNDP, advocating and facilitating the contribution of the private sector to human development and inclusive growth. More specifically, IICPSD’s main goals are to:

Support the development of inclusive and competitive markets and inclusive business models that engage poor people into value chains as producers, consumers, employees and entrepreneurs, with the end goal of poverty reduction, business growth and stability;
Foster private sector engagement and advocacy for the achievement of the Millennium Development Goals (MDG) (especially in focus sectors including health and nutrition, education, housing, water and sanitation as well as cross cutting themes such as youth, gender, and environment) and other internationally agreed development goals (IADG) such as climate change;
Become a center of excellence in terms of capacity development activities that harness Trilateral Development Cooperation and South-South partnership, promotes skills building, access of enterprises to sustainable finance, entrepreneurship and assistance to enabling actors;
Convene business and supporting actors to expand dialogue and create actionable partnerships between themselves, in support of a development agenda.

As a global policy center aiming at leveraging the contribution of the private sector to poverty reduction and social inclusion, the IICPSD has engaged in developing knowledge products on topics of relevance for the corporate Strategic Plan (2014-2017) overall goals. In particular, the IICPSD’s Research & Development work is designed to identify ways and map practices of private sector in development seeking solutions that are replicable and innovating towards underpinning achievement of the Strategic Plan:

Outcome 1: Growth is inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and excluded;
Outcome 3: Countries have strengthened institutions to progressively deliver universal access to basic services;
Outcome 4: Faster progress is achieved in reducing gender inequality and promoting women’s empowerment;
Outcome 6: Early recovery and rapid return to sustainable development pathways are achieved in post-conflict and post-disaster settings;
Outcome 7: Development debates and actions at all levels prioritize poverty, inequality and exclusion, consistent with our engagement principles.

Situation Analysis

Millions of poor, vulnerable, and marginalized people in developing countries are deprived of economic opportunities due to a variety of obstacles ranging from lack of knowledge and assets to geographic isolation. With diminished budgets, however, governments in those countries struggle to create economic opportunities as a way to generate incomes for the poor and thus people in developing countries remain excluded from economic activities. The private sector could complement the efforts of the governments through contributing to the development of more inclusive markets in the provision of goods and services as well as income opportunities to the disadvantaged. The building blocks of the inclusive markets, inclusive businesses, are to integrate the poor as clients, customers, employees, producers and business owners in the value chain. UNDP identified five broad constraints that are hindering the growth of the inclusive markets; limited market information, ineffective regulatory environments, inadequate physical infrastructure, missing knowledge and skills and restricted access to financial products and services. Especially, limited or no access to finance is one particular bottleneck within the business chain, which limits the poor from borrowing and saving money, establishing and expanding businesses and dealing with uncertainties. It is in this context that IICPSD sees an opportunity in rising popularity of Islamic Finance and Impact Investing as supplement to traditional finance to improve social equity and well-being of the society. Bridging these two sectors could be effective in fostering the inclusive markets through adapting products and processes, combining the resources and capabilities of impact investors and the Islamic finance industry as well as engaging in policy dialogue with the governments to enable this.

According to the World Bank, Islamic Finance can be defined as the act of offering financial services in accordance with Islam’s law and moral code, characterized by avoidance of interest. In recent years, the Islamic finance sector has been expanding rapidly around the globe. Ernst & Young’s research shows that the market reached to as big as $1.7 trillion with an annual growth rate of 17.6%. Especially after the recent economic crisis, the world started to view Islamic Finance as one of the alternatives to the existing financial system, whose stability and sustainability were in question. As the industry expands, not only Middle Eastern but also European and Asian financial institutions are increasingly involved in the sector, attracted by a wide range of financial instruments ranging from insurance products to mutual funds. Islamic Finance lays focus on social justice to realize vibrant and prosperous economy and hence distribution of wealth among society is encouraged through financial services.

Likewise, Impact Investing, or socially responsible investing, has been gaining public attention. Unlike traditional financing methods or charitable activities, impact investing seeks for both financial and social returns, addressing social issues related with education, healthcare, environment, microfinance, housing, and agriculture. The sector attracts individuals, foundations, private companies, and international finance institutions with various asset classes such as impact bonds, venture capital, and private equity. In addition, as more and more opportunities are found in developing and emerging countries, traditional investors show strong interests in the market to diversify their portfolios. Besides following conventional finance scheme, measuring and monitoring social performance are the key in Impact Investing and therefore it is required to ensure transparency and accountability in investment practices.

As such, ethical and social orientation of Islamic finance aligns with the concept of Impact Investing, providing huge potential to integrate marginalized people into the financial system. Considering such potentials of two areas in financing green and inclusive businesses, social enterprises, value chains as well as MSMEs towards poverty alleviation and human development, IICPSD is going to conduct research on how to capitalize on the convergence of two sectors. The goal is to expand market-based opportunities to the disadvantaged by increasing access to finance for inclusive and innovative businesses through a synergetic utilization of “Islamic Finance” and “Impact Investing”. IICPSD aims to facilitate a comprehensive framework for further partnerships building on this synergy. The potential roles for IICPSD include inter-alia:

Creating an enabling environment for the intersection of impact investing and Islamic finance through policy dialogue and advocacy;
Build institutional capacity through training programs targeting government, private sector both the investors and investees and civil society;
Provide evidence based advisory support to enable local and international organizations and financial institutions to expand their services;
Eradicate conceptual barriers through educational workshops/programs;
Collaborate with academic and private partners to enhance governance and risk management system;
Raise awareness on best practices of leveraging Islamic Finance for Impact Investing.

Duties and Responsibilities

Objectives of the Position

The overall objective of the consultancy is to conduct research for conceptualizing a new program to utilize Islamic Finance and Impact Investing as the driving force for enhancing access to finance for fostering higher development results around the world.

Duties And Responsibilities

Under the guidance and supervision of IICPSD, the consultant will:

Identify baseline information on Islamic Finance (e.g. general practices on risk sharing, investment mechanism, and social/ethical standards, regulatory environment, details of various financial products, current practices of Islamic financial institutions, bottlenecks it faces, major sector of economy attracting Islamic finance);
Identify baseline information on Impact Investing (e.g. effective business model, risk/return analysis, and impact measurement, bottlenecks, major sectors attracting impact investing);
Explore the potential to make use of Islamic Finance for Impact Investing including the systems, mechanisms, products, instruments, tools, etc.;
Evaluate opportunities and challenges associated with utilizing the potential of Islamic Finance for Impact Investing;
Identify, analyze, and present the key features of existing and emerging initiatives/cases around the world;
Considering the findings of 1-6, assess the potential for human development by improving access to finance and develop a strategy to maximize opportunities for the underprivileged;
Define the potential roles and functions for IICPSD as a facilitator and a key partner;
Develop a roadmap for future actions considering relevant stakeholders and potential partners;
Formulate a partnership and an outreach strategy on the concept for IICPSD;
Prepare actionable strategic partnership proposals for governments, local and international organizations, and financial institutions;
Develop outreach materials for IICPSD to effectively communicate the concept, the formulated strategy, and the role of IICPSD to potential partners and stakeholders.

Time-Frame Of The Assignment:

The work will be undertaken during a period of 30 working days (consecutive) starting from 01/10/2014 to 11/11/2014.

Deliverables - Estimated Delivery Time - Payment:

Inception report and draft table of contents for the background report - 2nd October, 2014 - %5 of the Total Contract Amount
Background report to facilitate further discussions on the role of IICPSD and possible collaboration. The report should cover inter alia the items 1,2,3,4,5 of duties and responsibilities - 20th October, 2014 - %35 of the Total Contract Amount;
Strategy documents to design and implement effective actions. The strategy should cover inter alia the items 6,7,8,9,10 of duties and responsibilities - 29th October, 2014 - %20 of the Total Contract Amount;
Outreach and presentation materials i.e. an executive summary based on research and analysis, issue briefs for stakeholder groups, and detailed PowerPoint presentations. The outreach and presentation materials should cover inter alia the items 10 and 11 of duties and responsibilities - 7th November, 2014 - %20 of the Total Contract Amount;
A collection of key reference materials and background documents relevant to aforementioned duties and responsibilities (1-11) - 10th November, 2014 - %10 of the Total Contract Amount;
Integration of the comments and feedback, recommendations for the future, and final assessment - 11th November, 2014 - %10 of the Total Contract Amount.

Reporting Line:

The consultant will be responsible to the IICPSD Deputy Director for the completion of the tasks and duties assigned under the scope defined in Article-C. The reports shall be submitted to the IICPSD Deputy Director for final approval. All of the reports are subject to approval by the IICPSD Deputy Director in order to realize the payments to the advisor. Without the approval of the IICPSD Deputy Director, the consultant will not be eligible to receive any payment.

Reporting Language:

Deliverables will be prepared and submitted in English.

Title Rights:

The title rights, copyrights and all other rights whatsoever nature in any material produced under the provisions of this ToR will be vested exclusively in UNDP.

Time Frame Of Work:

The work will be non-consecutively undertaken during the timeframe below:

Contract Start Date: 01 October 2014;
Contract Completion Date: 30 November 2014.

Duty Station:

This is a home-based assignment. Daily Subsistence Allowance (as per UNDP’s rules and regulations) will be paid only for the trips that are requested and approved by the IICPSD. All costs with regards to travel and accommodation shall be borne by the IICPSD.

Terms Of Payment And Conditions:

The consultant shall be paid in US$ at the official UN exchange rate valid on the date of money transfer.

Contracting Authority:

Contracting Authority for this ToR is UNDP Turkey on behalf of the Bureau for External Relations and Advocacy (UNDP BERA).

Contracting Modality:

Individual Contract (IC) of UNDP.

Payment schedule:

The payments shall be effected upon submission of the reports to UNDP at the required time as per this mission TORs and upon their approval by the IICPSD Deputy Director. Without submission and approval of the reports, the consultant shall not receive any payment even if he/she invests time for this assignment.

The amount paid to the expert shall be gross and inclusive of all associated costs such as social security, pension and income tax etc.

Activity/Milestone - Percentage to be Paid - Expected due date:

Inception report and draft table of contents for the background report - %5 of the Total Contract Amount - 2nd October, 2014;
Background report to facilitate further discussions on the role of IICPSD and possible collaboration - %35 of the Total Contract Amount - 20th October, 2014;
Strategy documents to design and implement effective actions - %20 of the Total Contract Amount - 29th October, 2014;
Outreach and presentation materials i.e. an executive summary based on research and analysis, issue briefs for stakeholder groups, and detailed PowerPoint presentations - %20 of the Total Contract Amount - 7th November, 2014;
A collection of key reference materials and background documents relevant to aforementioned duties and responsibilities - %10 of the Total Contract Amount - 10th November, 2014;
Integration of the comments and feedback, recommendations for the future, and final assessment - %10 of the Total Contract Amount - 15th November, 2014.

Total days required - 30.

* The number of days required is subject to change based on the needs of the project.

The payment conditions indicated herein represents the maximum amount to be paid for the particular deliverable. Upon need, UNDP may request additional inputs for each deliverable.

No advance payment will be made. UNDP will reserve the right for adding a 20% contingency reserve to the individual contracts for delivery of services that are not mentioned in this Terms of Reference, and/or to cover additional needs.

Tax obligation:

The subscriber is solely responsible for all taxation or other assessments on any income derived from UNDP. UNDP will not make any withholding from payments for the purposes of income tax. UNDP is exempt from any liabilities regarding taxation and will not reimburse any such taxation to the subscriber.

Services And Facilities Provided By UNDP:

The assignment is home based and the IICPSD will not provide equipment or facilities to the consultant during the assignment. UNDP will provide project documents and background information, and facilitate meetings with the stakeholders. All documents and data provided to the consultant are confidential and cannot be used for any other purposes or shared with a third party without any written approval from UNDP.

Competencies

Technical Competencies:

Knowledge of private sector and pro-poor market development, in particular of the impact investment sector and market;
Knowledge of Islamic Finance and financial institutions;
Strong analytical aptitude, communication and presentation skills;
Outstanding communication skills in English;
Knowledge of Impact Investing (e.g. effective business model, risk/return analysis, and impact measurement, bottlenecks, major sectors attracting impact investing).

Personal Competencies:

Demonstrates integrity by modelling the UN’s values and ethical standards;
Strong project management skills;
Positive, constructive attitude and approaches work with energy;
Demonstrates openness to change and ability to receive / integrate feedback;
Good networking skills to engage with both internal and external partners.

Required Skills and Experience

Education:

Advanced degree in international development, international relations, economics, business administration and/or other relevant field.

Experience:

At least 10 years of relevant international experience in engaging the private sector in development including impact investing (minimum 5 years) , Islamic finance (minimum 5 years), and in-depth knowledge of improving access to finance;
Ability and experience to deliver quality reports within the given time with forward-looking conclusions and recommendations;
Proven and relevant track record of publications;
Specific experience in how Islamic finance can be leveraged for improving access to finance, especially for impact investing;
Demonstrated ability to assess complex situations, critical issues, and draw forward-looking conclusions and recommendations;

Assets

Sound understanding of private sector in development;
Good understanding of the challenges faced in impact investing;
Understanding of UN/UNDP role, values and priorities and of sustainable development aspects of partnerships with the private sector;
Proven understanding of the work of UNDP in private sector engagement;
Familiarity with UNDP rules, regulations and results-based project development and implementation.

Language:

Fluency in written and spoken English is required,
Knowledge of local languages in countries where Islamic finance is active would be an advantage.

Notes:

Internships (paid/unpaid) are not considered professional experience;
Obligatory military service is not considered professional experience;
Professional experience gained in an international setting is considered international experience;
Experience gained prior to completion of undergraduate studies is not considered professional experience.