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Policymakers knew that aid alone would never be able to meet the financing needs of development. But the SDGs were accompanied by the optimistic “billions to trillions” vision, in which many believed that an abundance of commercially-viable SDG-related investments were ready and waiting for trillions in profitable private investment—if only development finance institutions (DFIs) and others could clear away the obstacles that stood between those opportunities and private investors.
We need to stretch the limits of what we can do to mobilize more finance for development. This is why we propose new model, which we’re calling “the stretch fund.”