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Financing Options for Low-Income Countries

The global narrative on development finance centers on enabling all countries to achieve the Sustainable Development Goals (SDGs) by 2030. This cascades into a set of questions about how much financing is needed, how it should be mobilized, and how it will be used. While the SDGs motivate action and have a reasonable prospect of being met in middle-income developing countries, achieving the SDGs in low-income countries (LICs), which have further to travel and more binding resource and institutional constraints, will be harder. The challenge will be most acute in Africa, where pockets of absolute poverty are increasingly concentrated and environmental degradation and conflict add to state fragility.  

Figure 3. Number of IDFC institutions active within each SDG

The Biggest Club You’ve Probably Never Heard Of

SDGs. Billions to trillions. South-South development cooperation. Development finance. If these terms resonate with you (positively or negatively), and you’ve never heard of the International Development Finance Club (IDFC), you should rectify that. At least, that’s the conclusion we’ve drawn after a year-long study of the IDFC and its member institutions. This work has culminated in a new CGD report, The International Development Finance Club and the Sustainable Development Goals: Impact, Opportunities, and Challenges

graph compares median private capital inflow/GDP ratios over time for LICs, lower-middle-income countries (LMICs), and upper-middle-income countries (UMICs

Three Surprises about Private Capital Flows to Low-Income Countries

The formidable challenge of financing the Sustainable Development Goals has focused attention on the role of private capital in filling huge finance gaps. But for low-income countries (LICs), which receive only about 5 percent of total cross-border private capital flows to developing countries, there is little confidence that external private capital will make a significant contribution.

Two stacked bar graphs, one with the total assets of the IDFC members (totaling 3.7 billion) and the other with the MDBs (totalling 1.5 billion).

Rising to the SDG Challenge: The Unique Contribution of the International Development Finance Club

The IDFC represents a unique mix of bilateral agencies, national development banks, and regional development banks. As such, it holds promise for bringing new and productive collaborations to the SDG agenda that extend well beyond the work of the major multilateral development institutions. In a new brief, our efforts to map the scale and scope of IDFC members’ development financing through a membership survey and public databases provide some interesting takeaways:

2013 World Bank Group / Fund Annual Meetings. 2013 Development Committee. Photo By: Eugene Salazar / World Bank

What CGD Experts are Watching at This Year’s World Bank/IMF Meetings in Bali

Why should countries invest in human capital? As emerging technologies impact economies and societies, how can we ensure that the most vulnerable are protected? Who will step up to finance the SDGs? Next week’s Annual Meetings of the World Bank and the IMF will convene 13,000 global policymakers, private sector executives, academics, and civil society members in Bali, Indonesia as they work to address these questions and more.

Stock photo of various currencies

Announcing an International Conference on Blended Development Finance and the New Industrial Policy

CGD and the Centre for Finance and Development are teaming up to bring together international finance practitioners who are thinking about how to marry public and private international financing for development (so-called blended finance) and researchers who are rethinking government strategies to encourage private activity in sectors viewed as key to economic development (known as the new industrial policy).

Davos and Development: What to Expect at this Year’s World Economic Forum

As world leaders gather to kick off the World Economic Forum Annual Meeting in Davos, Switzerland, CGD’s experts weigh in to shed some light on the ongoing debates, with innovative evidence-based solutions to the world’s most urgent challenges, and also discuss what’s not on the agenda but should be.

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