Low- and lower-middle- income countries (LMICs) are home to 50 percent of global population but have only 10.4 percent of the world’s investment (capital formation). Indeed, for these developing countries, the financing gap for achieving the Sustainable Development Goals (SDGs) will amount to US$4.2 trillion annually until 2030 (OECD, 2020). To help close this gap, this Policy Brief proposes that the G20: 1) Review the existing development financing scheme; 2) Develop domestic credit markets in LMICs; 3) Reform the private capital market credit rating system; 4) Restructure existing official debts for long-term low-interest finance; 5) Integrate blended financing in development financing schemes involving philanthropies and private companies; 6) Create a coordination and cooperation body involving global, regional and national development financial institutions; and 7) Establish national-level development banks.
Register for Updates
Would you like to receive updates on the Global Solutions Initiative, upcoming events, G7 and G20-related developments and the future of multilateralism? Then subscribe here!
1 You hereby agree that the personal data provided may be used for the purpose of updates on the Global Solutions Initiative by the Global Solutions Initiative Foundation gemeinnützige GmbH. Your consent is revocable at any time (by e-mail to contact@global-solutions-initiative.org or to the contact data given in the imprint). The update is sent in accordance with the privacy policy and to advertise the Global Solutions Initiative’s own products and services.