IMF and MDBs Announce $400B Financing to Boost Sustainable Development

Jul 2015
Global, July, 13 2015 - To achieve the global Sustainable Development Goals, it is essential to increase investment and resource flows to developing countries. However, this can happen only where a country has a coherent development strategy, support for key public sector services, and a business environment that promotes growth.

Multilateral Development Banks (MDBs) and the International Monetary Fund have announced plans to extend more than $400 billion in financing over the next three years and engage more closely with private business and public sector organizations to mobilize the resources needed to achieve the Sustainable Development Goals.

The MDBs include the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, and World Bank Group. Together with the IMF, they have announced the new financing plans in the run-up to the Third International Conference on Financing for Development in Addis Ababa from July 13 to 16.

The corporate sector too, is playing an increasing role in financing goods, services and infrastructure. The MDBs are committed to engaging differently with corporate partners on a wide range of interventions, including connecting investors with opportunities, helping countries make investments more attractive, and building local financial markets.

In the poorest and most fragile countries, official development assistance, estimated at $135 billion per year, provides a fundamental source of financing. However, much more is needed. Investment requirements in infrastructure alone are a staggering $1.5 trillion a year in emerging and developing economies. To meet these requirements, there is a need to optimize every dollar from every source, and draw in public and private investment.

Christine Lagarde, Managing Director, IMF, said that 2015 marks a once-in-a-generation opportunity for global development. The only way to seize it is through partnership. Jim Yong Kim, President, World Bank Group, said that trillions, not billions of dollars are needed to accomplish the goals of sustainable development, and the money must come from many sources: developing countries, private sector investment, donors, and international financial institutions.

Source : Justmeans

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