SDGs. Billions to trillions. South-South development cooperation. Development finance. If these terms resonate with you (positively or negatively), and you’ve never heard of the International Development Finance Club (IDFC), you should rectify that. At least, that’s the conclusion we’ve drawn after a year-long study of the IDFC and its member institutions. This work has culminated in a new CGD report, The International Development Finance Club and the Sustainable Development Goals: Impact, Opportunities, and Challenges.
CGD Policy Blogs
The formidable challenge of financing the Sustainable Development Goals has focused attention on the role of private capital in filling huge finance gaps. But for low-income countries (LICs), which receive only about 5 percent of total cross-border private capital flows to developing countries, there is little confidence that external private capital will make a significant contribution.
The IDFC represents a unique mix of bilateral agencies, national development banks, and regional development banks. As such, it holds promise for bringing new and productive collaborations to the SDG agenda that extend well beyond the work of the major multilateral development institutions. In a new brief, our efforts to map the scale and scope of IDFC members’ development financing through a membership survey and public databases provide some interesting takeaways:
CGD and the Centre for Finance and Development are teaming up to bring together international finance practitioners who are thinking about how to marry public and private international financing for development (so-called blended finance) and researchers who are rethinking government strategies to encourage private activity in sectors viewed as key to economic development (known as the new industrial policy).
As world leaders gather to kick off the World Economic Forum Annual Meeting in Davos, Switzerland, CGD’s experts weigh in to shed some light on the ongoing debates, with innovative evidence-based solutions to the world’s most urgent challenges, and also discuss what’s not on the agenda but should be.
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.
In a world with the 2030 Agenda for Sustainable Development, the international investment policy system stands as an obsolete regime in urgent need of revision and reform. This is the main conclusion of the analysis that the think tank CIECODE conducted for CGD’s 2017 Commitment to Development Index (CDI). The analysis measures the amount of “sustainable development content” included in International Investment Agreements (IIAs) signed between developing and developed countries. Here, we look at best practices, main issues and which countries could do better.