The Development Effectiveness of Supporting the Private Sector With ODA Funds

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Development funding is increasingly being channeled through Development Finance Institutions. These national institutions are particularly solicited when using development aid money to free up further investment, known as leveraging. When used well, these tools have the potential to allow sectors of developing countries’ economies that would not otherwise attract investment to strengthen and expand. However, this publication highlights a number of alarming shortfalls in how these institutions operate that can seriously undermine international development goals. This new report, entitled: Тhe development effectiveness of supporting the private sector with ODA funds examined nine Development Finance Institutions (DFIs). Five case studies provided a background for the study which found that DFI practice is lacking in three vital areas: ownership, development results and mutual accountability. More information is available here.
Source: CSO Partnership for Development Effectiveness

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