UN DESA Policy Brief Special issue
Financing the Sustainable Development Goals through mission-oriented development banks
There is an urgent need for channeling long-term risk-tolerant finance towards achieving the Sustainable Development Goals. The paper argues that National Development Banks (NDBs) and Multilateral Development Banks (MDBs) can play a crucial role in mobilizing the needed capital but only if an outcomes oriented ‘mission-oriented’ approach is adopted to galvanize, catalyze, and crowd in substantial global public and private finance (scaling it up from billions to trillions). Missions help transform broad SDG related challenges, like global health and climate change, into investment pathways where strong publicly set goals crowd in private investment. Key is to make sure that strong conditions around reciprocity determine equitable and just partnerships and direct public and private finance towards inclusive and sustainable outcomes. Low-income countries which continue to face stringent international credit conditions can benefit from diverting resources from debt repayment towards development goals, while high-income countries can unlock financialised and hoarded capital for sustainable development.
Authors
- Mariana Mazzucato | Director and Professor in the Economics of Innovation and Public Value UCL Institute for Innovation and Public Purpose
Reference
Mazzucato, Mariana (2023). Financing the Sustainable Development Goals through mission-oriented development banks. UN DESA Policy Brief Special issue. New York: UN Department of Economic and Social Affairs; UN High-level Advisory Board on Economic and Social Affairs; University College London Institute for Innovation and Public Purpose. September.