Table 1 Options, roles and strategies of... | Emerald Publishing

Table 1

Options, roles and strategies of development finance

Options	Primary roles	Strategies
1. Domestic public financing	Increasing equity through poverty reduction Providing public goods and services to change incentives of private actors Managing macroeconomic stability	Promote tax reform, tax compliance and deeper international cooperation Ensure good financial governance and public financial management Internalize externalities and mainstream environmental sustainability Address inequality and the social protection imperative Effectively manage public debt Explore the potential contributions of national development banks
2. Domestic private financing	From households to multinational corporations Profit-oriented, suitable for productive investment	Provide access to financial services for household and microenterprises Promote lending to small and medium-sized enterprises Develop financial markets for long-term investment and enhance regulations to balance access and stability Strengthen the enabling environment Strengthen economic, environmental, social and governance and sustainability considerations in the financial system
3. International public financing	(similar to domestic public finance)	Meet existing commitments Make use of all international public financing sources and instruments Use international public resources efficiently and effectively
4. International private financing	(similar to domestic private finance) Including FDI, portfolio flows and cross-border bank loans	Channel international funds towards long-term investment in sustainable development Manage volatility of risk associated with short-term cross-border capital flows Facilitate the flow of remittances and private development assistance
5. Blended financing	Leverage private finance and traditional public private partnership nnovative implementing partnership	Strategically assess the use of blended financing and innovative partnership Explore the potential contributions of development finance institutions in support of blended finance Strengthen capacity development efforts

Options	Primary roles	Strategies
1. Domestic public financing	Increasing equity through poverty reduction Providing public goods and services to change incentives of private actors Managing macroeconomic stability	Promote tax reform, tax compliance and deeper international cooperation Ensure good financial governance and public financial management Internalize externalities and mainstream environmental sustainability Address inequality and the social protection imperative Effectively manage public debt Explore the potential contributions of national development banks
2. Domestic private financing	From households to multinational corporations Profit-oriented, suitable for productive investment	Provide access to financial services for household and microenterprises Promote lending to small and medium-sized enterprises Develop financial markets for long-term investment and enhance regulations to balance access and stability Strengthen the enabling environment Strengthen economic, environmental, social and governance and sustainability considerations in the financial system
3. International public financing	(similar to domestic public finance)	Meet existing commitments Make use of all international public financing sources and instruments Use international public resources efficiently and effectively
4. International private financing	(similar to domestic private finance)Including FDI, portfolio flows and cross-border bank loans	Channel international funds towards long-term investment in sustainable development Manage volatility of risk associated with short-term cross-border capital flows Facilitate the flow of remittances and private development assistance
5. Blended financing	Leverage private finance and traditional public private partnership nnovative implementing partnership	Strategically assess the use of blended financing and innovative partnership Explore the potential contributions of development finance institutions in support of blended finance Strengthen capacity development efforts

Source(s): United Nations (2014), Report of the Intergovernmental Committee of Experts on Sustainable Development Financing, New York. pp. 15–37 (summarized)