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Significance
Blended finance has failed to deliver on policymakers’ expectations on both scale and effectiveness, mobilising only USD306bn from 2012 to 2020, whereas the shortfall required to meet the Sustainable Development Goals (SDGs) is estimated to be at least USD2.5tn per year.
Impacts
The development finance agenda will be led by the adoption of principles that can enhance the scale and effectiveness of blended finance.
Interest in development projects from global investors may fall as returns on safer investments rise and economic uncertainty remains high.
New global shocks could require ODA to be redirected from blended finance towards more traditional forms of support, such as debt relief.
Keywords:
International,
INT,
economy,
aid,
welfare,
finance,
growth,
infrastructure,
private sector
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2022
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