New OECD evidence shows that when it comes to blended finance, structure matters more than subsidy alone. Strategically positioned junior tranches are key to unlocking private capital in high-risk emerging markets. Continue reading Making blended finance work: Why fund structure is the real driver of mobilisation
A quiet overhaul in credit rating methodologies is dramatically expanding the lending power of MDBs. Here’s what this shift shows about how private rating agencies set the limits of global development finance — and why a more transparent framework is urgently needed. Continue reading How credit rating agencies are reshaping global development finance
Nearly 80% of the world’s poor live in areas exposed to climate hazards. More than half face several climate hazards at once. This underscores an unavoidable truth: ending poverty and addressing climate change are inseparable goals that must be tackled together. Continue reading Why fighting poverty means tackling climate change head-on
Development partners adopted a “get it done” attitude in response to Covid-19. Countries and philanthropies mobilised USD 126 billion, with major vaccine support going to the least developed countries and Africa. But a new OECD report shows that these efforts didn’t reach all their goals. What lessons should partners draw from this crisis to improve preparedness for the next one? Continue reading What we learned from COVID-19
Can Special Economic Zones deliver on their promise of structural transformation for Africa? A new study shows that while they have not always lived up to expectations, they are evolving — and could become powerful tools for inclusive growth on the continent. Continue reading A new start for Africa’s Special Economic Zones?
Frontier economies are hard to invest in but hold big potential. With the right approach, DFIs can unlock both growth and profits in these markets. Here are six lessons for policy makers. Continue reading Investing in frontier markets: What DFIs need to know
Catalytic technical assistance can improve the underlying market conditions for private investment in sustainable development. Continue reading How catalytic technical assistance can help unlock development finance
The Third UN Ocean Conference (UNOC-3) made a clear case for putting the ocean at the centre of the sustainable development agenda. While this should be celebrated, much work remains to translate UNOC-3’s achievements into real accomplishments. Continue reading The Third UN Ocean Conference: Reflections and the road ahead
Development finance providers and policy makers must play a central role in expanding local currency financing and ensuring that the risks of currency volatility are not borne exclusively by those least able to manage them. Here are some short and long-term measures that can help. Continue reading Beyond hard currency: A new approach for development finance
By Harald Hirschhofer and Ugo Panizza
At COP29 in November, negotiators agreed to triple annual financing for developing countries from USD 100 billion to USD 300 billion by 2035. The challenge is that even if this ambitious target is met— a big “if” given the declining political commitment to official development assistance (ODA)—it will still fall short of the resources needed to scale up climate and SDG financing while ensuring debt sustainability.
Continue reading “To make ODA fit for the future, focus on currency risk “