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Mobilising private funding of development finance

Mobilising private funding of development finance
Mobilising private funding of development finance
Successful delivery of the United Nations Sustainable Development Goals (SDGs) is dependent upon mobilising private sector finance. From a lending perspective, this requires banks to co-invest or otherwise divert more resources to development finance. To provide insights into the effectiveness of this important initiative, this paper reviews key literature across Scopus, Web of Science and Google Scholar using a defined set of keyword searches. Four main themes of future research are identified. First, the international political economy has an influence on the competitive conditions in development finance and these forces need to be explained. Second, the structure of development projects affects the extent to which private sector capital is willing to be mobilised. More insights are needed into how private sector banks can be influenced. Third, the manner in which development banks participate in development projects affects the availability of credit. A greater understanding of their role could unlock greater financing flows. Finally, it is shown that risk appetite and mitigation of development finance affects pricing and credit availability which is another critical component of delivering the SDGs.
Sustainable Development Goals, blended finance, capital mobilisation, development banks, development finance, loan pricing
1979-2001
McHugh, Christopher, Andrew
20a2c756-a537-4eb4-a86d-443b01892385
McHugh, Christopher, Andrew
20a2c756-a537-4eb4-a86d-443b01892385

McHugh, Christopher, Andrew (2021) Mobilising private funding of development finance. The Journal of Development Studies, 57 (12), 1979-2001. (doi:10.1080/00220388.2021.1945042).

Record type: Article

Abstract

Successful delivery of the United Nations Sustainable Development Goals (SDGs) is dependent upon mobilising private sector finance. From a lending perspective, this requires banks to co-invest or otherwise divert more resources to development finance. To provide insights into the effectiveness of this important initiative, this paper reviews key literature across Scopus, Web of Science and Google Scholar using a defined set of keyword searches. Four main themes of future research are identified. First, the international political economy has an influence on the competitive conditions in development finance and these forces need to be explained. Second, the structure of development projects affects the extent to which private sector capital is willing to be mobilised. More insights are needed into how private sector banks can be influenced. Third, the manner in which development banks participate in development projects affects the availability of credit. A greater understanding of their role could unlock greater financing flows. Finally, it is shown that risk appetite and mitigation of development finance affects pricing and credit availability which is another critical component of delivering the SDGs.

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Accepted/In Press date: 7 June 2021
e-pub ahead of print date: 7 July 2021
Published date: 2 December 2021
Additional Information: Funding Information: The author would like to thank Renatas Kizys at the University of Southampton and two anonymous reviewers for their comments and suggestions on earlier versions of this article. The author receives support from The London Institute of Banking & Finance for research conducted at the University of Southampton.
Keywords: Sustainable Development Goals, blended finance, capital mobilisation, development banks, development finance, loan pricing

Identifiers

Local EPrints ID: 450578
URI: http://eprints.soton.ac.uk/id/eprint/450578
PURE UUID: cf8f9731-becf-4bf0-b5ab-4fd33b72db47
ORCID for Christopher, Andrew McHugh: ORCID iD orcid.org/0000-0002-1569-5277

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Date deposited: 04 Aug 2021 16:33
Last modified: 16 Jun 2022 01:57

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Author: Christopher, Andrew McHugh ORCID iD

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