Outlook for global development finance: excess or shortage?

Abstract

This chapter presents an outlook for global development finance and asks whether we have an excess or shortage of available resources for the implementation of the Post-2015 Development Agenda. It begins with a discussion of current and future sources of development finance, with a focus on both products and institutions, including long-term institutions capable of funding development. Future sources include foreign capital in the form of foreign direct investments (FDI), foreign portfolio investments and foreign aid, as well as the domestic sector. The chapter then reflects on the future of development finance, emphasising three paths: deepening capital markets in emerging market economies (EMEs); meeting the strategic objectives of institutional investors such as pension funds, insurance companies, sovereign wealth funds and Islamic finance; and innovating the financing of investment. The G20 development strategy, the impact of technology on development finance, and implementation issues on financing of climate change are also analysed.