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blending 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
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.