Blending 2.0: Could mobilising private capital work in poorer countries, too?
News from 2019-04-17 / KfW Research, KfW Development Bank
Development in Brief
Private direct investment (FDI) is decreasing in developing countries and emerging economies, while ODA and tax revenue are stagnating. Calls for additional private funds in development financing have therefore become louder and louder since the 3rd International Conference on Financing for Development in Addis Ababa, and an ever-increasing number of organisations other than the traditional donors are now responding to this demand.
The latest edition of Development in Brief will look at Blending 2.0. This instrument continues to grow in importance in light of the significant financing needed to achieve the global sustainability goals. It describes the strategic use of government development financing to mobilise additional private funds in developing countries and emerging economies.