Inputs to the Outcome Document

The global financial system faces critical challenges, particularly for developing countries, including debt crises and financing gaps. Intensified South-South and Triangular Cooperation (SSTrC) can offer innovative policy solutions. Recommendations include scaling up debt management strategies, upscaling innovative solutions, strengthening regional development banks, and creating regional infrastructure bonds to pool risks and lower borrowing costs. Expanding contingency financing mechanisms and establishing data-sharing platforms are essential for financial stability. FFD4 presents a key opportunity to advance these SSTrC-driven initiatives for sustainable development.

IFC’s brief outlines some of the necessary conditions for continued growth in the application of blended finance for private sector projects in emerging markets and developing economies to address global challenges like climate, fragility, food security, and gender. Enhanced transparency, new sources of flexible concessional finance, and continued collaboration between stakeholders are identified as key factors in helping the market scale to meet the SDG funding gap.