In a new working paper, we aim to address this gap with a new measure of cross-border, concessional finance—Finance for International Development (FID). FID is designed to be a measure which is more consistent across all development actors—going beyond just OECD members.
CGD Policy Blogs
We need a new public-private actor to fill the gap in the development finance architechure. Nancy Lee and Dan Preson have a solution: The Stretch Fund.
Economist Stephany Griffith-Jones on the role development banks can play in innovation, how they should interact with private actors and governments, and what new institutions can learn from their predecessors.
It is now abundantly clear that aid money will provide only a fraction of the resources needed to reach the Sustainable Development Goals. That realization came early on, and it was a central theme of the Addis Financing for Development conference of 2015, held before the SDGs were even signed.
After toiling away for decades in relative obscurity, DFIs have found themselves thrust into the limelight and told to transform “billions to trillions,” to fill the yawning SDG financing gap.
Amid much discussion of SDG finance gaps, DFIs, both bilateral and multilateral, are in the spotlight as the most important publicly funded instruments for mobilising private capital. Yet, there is a surprising lack of clarity on what we can and should expect from DFIs, beyond broad goals of profitability and development impact.
Trillions in Private Finance for the SDGs? In Davos, Leaders Should Revisit the Role of Multilateral Development Banks
As global decision makers meet in Davos, one of the top agenda items should be how to mobilize more private finance to fund the Sustainable Development Goals—particularly how to strengthen the role of one of the most important tools of the international community: the multilateral development banks.
This week, CGD hosted a discussion with Philippe Le Houérou, the CEO of IFC, the private sector arm of the World Bank. He was enthusiastic about his institution’s role in leveraging private capital and getting from billions to trillions of dollars for development, but he also presented a nuanced and critical judgment about the limitations of the IFC model to date, pointing to a number of ways it needs to change.