Country cases: Blended finance in development

Keywords : Technical document ATUDN

How do governments use blended finance to attract private sector in development cooperation projects? The Trade Union Development Cooperation Network (TUDCN) has conducted field studies in Chile and the Philippines. Through them, the TUDCN shows that governments and donors must revise their use of blended finance and align private investments in development programs with the Sustainable Development Goals.

Whether investing in solar energy in Chile’s Atacama Desert or modernising Manila’s light rail lines, the involvement of private sector in development cooperation has not delivered any sustained and sustainable improvement for the populations in these countries. On the contrary, the studies show that short-term business objectives have driven the projects instead of the principles of development effectiveness and the SDGs.


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