Massive amounts of private finance will be needed to achieve the Sustainable Development Goals (SDGs). At the same time, there is understandable pressure on official sector entities to demonstrate that their use of scarce public resources is having impact. While this makes it important for them to show how they are catalysing private investment, as discussed in a recent article, measuring this contribution is fraught with challenges.
The first challenge is definitional. Words like “mobilise,” “catalyse,” “leverage” and “additional” are often used interchangeably, with varying degrees of precision and consistency. A number of these concepts appear in the World Bank Group (WBG) “corporate scorecards” — an integrated performance and results-reporting framework — which has presented us with a platform to distinguish the terms.
- Financial Sector