Blending Public and Private Finance

Following international agreement on the sustainable development goals, governments are now confronting the critical issue of funding the enormous investments - especially in infrastructure - required to meet those goals. Yet governments clearly lack the fiscal space to finance all the investments, as well as the skills needed to design and manage them. So the focus is on how to crowd in private investment and private management. Since not enough private investment is flowing today, donor governments are exploring how to blend public aid money with private finance to make aid spending go further and crowd in more private investment.