When governments adopted the Sustainable Development Goals (SDGs), their message was one of ambition: a world in which poverty is eliminated, growth made sustainable, ecosystems restored, and no one is left behind. This came with a price tag: annual investment needs of $4 trillion. With only $1.5 trillion now being invested, this means closing an investment gap of $2.5 trillion every year until 2030.
For International Finance Institutions, this is the central challenge of our time. It involves aligning the interest of global savers, and the investors who represent them, with the interest of citizens as they are expressed through the SDGs.
The fact is that the poorest countries have been left behind. To change this, we have focused on two levers: (a) reforms and instruments to manage risks of investing in lower-income countries, which are perceived to be of higher risk, and (b) sector policy and capacity to increase the flow of viable, high impact projects. At major gatherings in Addis Ababa, New York, Washington and Accra, we are working on these issues.