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Development Finance

Last things first — knowing the problem at hand is key for blended finance

Morten Lykke Lauridsen's picture



Solutions to problems

are easy to find:
the problem’s a great
contribution.
 
So wrote the Danish poet, inventor, and mathematician Piet Hein. Development finance wasn’t on his mind when he wrote those words. Neither was private sector development. Yet the observation is unmistakably true for the field: To formulate solutions, we must first understand the nature of the problems we are trying to solve.
 
There is no silver bullet for the complex challenges of development. But blended finance — which involves combining public concessional funds with private capital — is an important part of the solution. It helps crowd in private investment to create markets in difficult places. In an era of limited government resources and donor funds, this is key to achieving sustainable development.

Coming together is the way forward: Maximizing Finance for Development

Hartwig Schafer's picture
Also available in: Español



Those following the discussions during the IMF and World Bank Group Annual Meetings held in Washington last week will have noticed that our approach toward international economic development is changing in a major way—and, I believe,  for the better.
 
Saturday’s panel discussion on Maximizing Finance for Development set the context that many in the development community now know well, but bears repeating: It will take not billions, but many trillions of dollars to meet rising aspirations for better infrastructure, health and education. Specifically, we are talking about $4 trillion every year needed to meet the Sustainable Development Goals to which the international community agreed in September 2015.