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
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
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 “
Desertification, land degradation and droughts (DLDD) often go overlooked compared to other global crises linked to climate change or biodiversity loss, yet they devastate ecosystems, livelihoods and food security for billions worldwide. As policymakers gather in Riyadh from 2 to 11 December 2024 for the sixteenth Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification (UNCCD), this is an important opportunity to raise ambitions, scale up resources and strengthen global co-operation to tackle these challenges. Continue reading Financing the Fight Against Desertification
How can we build a more effective multilateral development system to tackle global challenges? This question was central to the OECD Multilateral Development Finance Week (23-29 September 2024), which brought together experts from 14 different countries to discuss how multilateral organisations can adapt to new mandates and the changes in global development finance approaches. Continue reading Reforming multilateral development co-operation in a changing world
By Ruurd Brouwer, CEO, TCX, and Barry Eichengreen, Professor of Economics and Political Science, University of California, Berkeley
Private-sector funding will be essential for raising the trillions of dollars needed to finance climate-change abatement and adaption projects in emerging and developing countries. The question is: will that finance be forthcoming?
Continue reading “Currency risk is stifling climate finance for developing countries. It should – and can – be mitigated”
By Rabah Arezki, director of research at the French National Center for Scientific Research (CNRS), senior fellow at the Foundation for Studies and Research on International Development (FERDI) and Harvard Kennedy School, former Chief Economist and Vice President at the African Development Bank and former Chief Economist at the World Bank’s Middle East and North Africa region.
Multilateral Development Banks (MDBs) have been in the news a lot lately. Leaders have called upon them to step up and help solve some of the world’s most pressing problems such as climate change, the debt crisis and fragility. The discussion on increasing the lending volume committed by MDBs has been at the centre of the policy agenda. But to achieve impact, MDBs must get the balance right between ideas and operations.
Continue reading “Getting the balance right between ideas and operations in Multilateral Development Banks”