The UN Conference on Financing for Development (FfD) took place in Doha, Quatar from November 30th through December 2nd. The World Bank, Agence Française de Développement (AFD) and the Bill and Melinda Gates Foundation jointly organized a side event on "Lessons for Practitioners: Innovative Financing for Development."
The main objective of this session was to discuss how innovative financing mechanisms and instruments can be better tailored to the needs of developing countries and make development finance more effective.
For long-term growth and poverty reduction, developing countries need both “smart” public finance-based mechanisms and innovative “market-based” (i.e., private-to-private) financing instruments. In the current crisis situation, facilitation of cross-border capital channeled to the private sector is of particular significance.
The panelists shared experiences and perspectives on the use of innovative financing using market-based and public finance-based financing tools, and public-private partnerships. They also discussed the role of various stakeholders and facilitators including bilateral and multilateral institutions in the development and promotion of these instruments. In light of the scarce resources available for developing countries:
- Will market-based innovative funding sources such as diaspora bonds, securitization of future remittances and the role of shadow sovereign ratings contribute to development financing?
- What are the lessons emerging from public finance based mechanisms and public-private partnerships in providing complementary funds for official development assistance (ODA)?
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