Major new report on private finance urges post-2015 focus on quality not quantity
Published on Sun, 2014-04-13 10:13
The European Parliament has just released a major report with a clear message for all those engaged in the growing debate about the role of external private finance in development: quality matters far more than quantity. As the post-2015 debate on financing development continues, and the UN gears up for a major Financing for Development conference in 2015 or 2016, this timely paper – co-authored by Jesse Griffiths and three other experts - gives clear recommendations on how European governments can ensure that fighting poverty stays at the heart of this agenda. The current picture Firstly, here are the main findings of the report’s review of all available data on global private finance flows:
Things to remember about private finance The report argues that three facts about external private finance should be at the top of policy-makers minds:
Given this, efforts to incentivise or ‘leverage’ increased private investment in developing countries by development finance institutions (DFIs) and others have been disappointing. The report finds that DFIs have:
There’s a lot of confusion surrounding the term PPPs – in the classical sense, PPPs involve a private investment in a ‘public’ service area where the private investor gets repaid over a number of years, either through revenues or – very commonly – by the government. In this latter case, as the killer chart below from the report shows, PPPs are really just an extraordinarily expensive method of government borrowing. (...) Read the full blog post here: Read the full EP report here: http://eurodad.org/files/pdf/5346a6b10e9a4.pdf
Source: Eurodad. Tags: » |
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