Research reports and studiesApril 2019Samantha Attridge and Lars EngenFacilitating Cross-Border Transport in the Central Asia Regional Economic Cooperation Region in Pakistan. Photo: Asian Development Bank CC-BY-NC-NDThe need to mobilise private finance is at the heart of international discussions on how to finance the Sustainable Development Goals (SDGs) and move the needle from ‘billions’ of dollars in development aid to ‘trillions’ of dollars in investment.With an estimated SDG financing gap of $2.5 trillion a year in developing countries alone, the international development community is placing an increasing emphasis on blended finance. This report aims to provide hard evidence to inform the discussion on the role of blended finance in plugging the SDG financing gap in developing countries. We found that:Expectations that blended finance can bridge the SDG financing gap are unrealistic: ‘billions-to-billions’ is more plausible than ‘billions to trillions’.The big push on blended finance risks undermining the poverty eradication agenda in the poorest countries.Policy-makers need a better understanding of the poverty and development impact of blended finance, as well as its true costs, to ensure value for money and effective policy-making and allocation of aid.Multilateral development banks and development finance institutions need to collectively adopt a more distinct and tailored approach to blended finance in low-income countries.Read the research Blended finance in the poorest countries: the need for a better approachDocumentpdfRelated Blended finance: what donors can learn from the latest evidence The buzz around the potential of blended finance is clouding decision-making. Here’s what donors should consider when deciding to invest aid in this way.Articles and blogs26 April 2019 Financing the end of extreme povertyWhat actions do donors need to take in order to eradicate extreme poverty in the next 12 years?Public event18 September 2018 How international financial institutions can be more effective on the groundPutting governments in the driving seat and investing in inclusive partnerships is key to making country coordination platforms work.Articles and blogs12 September 2018 Can blended finance work for the poorest countries?As blended finance continues its vertiginous ascent to the top of the ‘billions to trillions’ agenda, we assess when and where it can and won’t work.Articles and blogs1 June 2018See more:public financefinancedevelopment financeGlobal