Long-term investment plans are essential for national success in achieving sustainable development. Economic development is a high-return activity. High-priority investments in developing countries – whether for electrification, water and sanitation, public transport, or schooling – have economic returns far above the cost of capital. Yet sovereign borrowers in the emerging economies are often in a bind. They face very poor credit ratings and very high borrowing costs. The result is that they are unable to finance essential capital needs and their sustainable development is starkly impeded.
Careful research by the SDSN and the International Monetary Fund have revealed the very large financing gap facing the nations in the poorer half of the world.
Through our work we emphasize the need for increased access to financing in developing countries (a) at long maturities and low interest rates; (b) directed at high-return activities including education, health, and infrastructure. We work with UN agencies, the OECD, Multilateral Development Banks and other key partners to unlock SDG financing. We also work with countries to channel larger funds into long-term sustainable development which requires sound long-term budget and investment frameworks. In our work, we also provide special analyses and support to countries that are structurally vulnerable, including Small Island Developing States (SIDS), which face particular SDG financing, implementation and data challenges.
We seek to increase our engagement with global, national and local stakeholders,
including the private sector, to scale-up and align international financial
flows to SDG needs and commitments.
If you want to learn more about SDG Financing, please contact our experts: Isabella