40 Sustainable Development Governance for Recover Forward
Sustainable Development Governance / Targeted Investments to Recover Forward and to Catalyse Transformative Change
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Targeted Investments to Recover Forward and to Catalyse Transformative Change

English

Theme

Financing

Function

Financing Instruments and Funds

2022
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AUTHORS, EDITORS & FUNDING PARTNERS

Financial cooperation seeks to support the development of resilient and sustainable economies through green and social investments that catalyse action for the Sustainable Development Goals (SDGs), for example by generating income, reducing inequality, and protecting the environment and climate. Policy-based lending focused on advancing the 2030 Agenda can steer investment towards reform areas in order to multiply efforts. It can set important fiscal incentives to leverage development processes that integrate the three dimensions of sustainability towards greener and fairer economies and societies. In this context, the German development cooperation discourse refers to SDG-aligned concessional policy-based loans by bilateral and multilateral donors, with the potential to foster a better, forward-oriented recovery from the pandemic, as SDG loans.

 

The study presented here, led by the United Nations Research Institute for Social Development (UNRISD), explores how policy-based lending can contribute effectively to better crisis recovery and accelerated implementation of the 2030 Agenda. It explores how development lending has changed since the adoption of the 2030 Agenda, including the Addis Ababa Action Agenda (AAAA) and the SDGs. Taking a multi-disciplinary perspective, the study focuses on how financial and technical cooperation can best collaborate to enhance the effectiveness and impact of lending to support achievement of the SDGs, and what an effective technical advisory approach might look like. It examines the role of long-term policy advice in enhancing the effectiveness and transformative potential of lending in light of the 2030 Agenda.

 

Interviews with officials from development banks and other stakeholders assess perspectives on the qualitative characteristics, posited benefits, and current trends and realities of lending in the context of the 2030 Agenda. Integrating this diverse expertise from a policy and practitioner level, the study examines current practices, lessons learnt, and innovations in concessional loan-based financing in support of the SDGs through a variety of case studies. The case studies highlight both good practices and areas for improvement, particularly in relation to the provision, use and effectiveness of policy advice.