Inputs to the Outcome Document

Remittances and diaspora investments are a major source of external private finance crucial for achieving SDGs, but their full potential remains largely untapped. Member States should acknowledge their potential and renew and expand their commitments to maximize their impact to development, ensuring access to formal, affordable, and secure remittance services through supportive regulations, improved payment systems, digital solutions, and promoting financial inclusion for both migrants and their families back home. At the same time, Member States should facilitate and support diaspora investments to homeland SMEs by creating diaspora engagement strategies and supportive environments, capacity-building for diaspora members, involve them in policy development, remove investment barriers, and provide adequate mechanisms to crowd in their investment.

This policy brief describes the evolving landscape of the global aid architecture and the critical role of multilateral banks, like IDA, in promoting a more equitable and more effective distribution of resources. It analyzes the need for a rebalancing in the allocation of aid to ensure greater effectiveness and impact. The brief highlights the importance of better funding MDBs, strengthening country ownership, improved collaboration among donors, transparency, and accountability in achieving sustainable development goals.

This briefing is part of the Financing Policy Brief Series developed by PRI and other members of the Inter-agency Task Force on Financing for Development. The objective of the briefing is to inform the substantive preparations for the Fourth Conference on Financing for Development (FfD4).

This briefing addresses two action areas of the Addis Ababa Action Agenda (the outcome document of FfD3): 1) domestic and international private business and finance; and 2) systemic issues. It is based on PRI’s 2023 policy white paper, Investing for the Economic Transition: The Case for Whole-of-Government Policy Reform