Adapting, Expanding New Financing Instruments Can Help LDCs Achieve SDGs
Devex: Big gaps and little money: Why solutions to finance SDGs in LDCs matter
Gail Hurley, policy specialist on development finance at the U.N. Development Programme (UNDP), and Marianne Mensah, adviser for innovative financing for development at the Agence Française de Développement
“…Over the past 15 years, new financing instruments have emerged both within and in addition to [official development assistance (ODA)]. These include: blended finance; guarantees; green bonds; local currency loans; diaspora financing vehicles; impact investing; performance-based loan contracts; and insurance, among others. But beyond a handful of cases, these approaches have not been widely used in the [least-developed countries (LDCs)]. … While these types of financial instruments have the potential to bring new solutions to the financing of Agenda 2030 in the LDCs, they will not be effective unless they are adapted to the specific needs and circumstances of each country and fully support national development strategies. Expanding financing to the LDCs — in ways that make sense to each country — will be critical if we are to remain true to the [Sustainable Development Goals (SDG)] promise to ‘leave no one behind'” (4/6).