{"id":30866,"date":"2025-06-26T11:34:22","date_gmt":"2025-06-26T15:34:22","guid":{"rendered":"https:\/\/www.bu.edu\/gdp\/?p=30866"},"modified":"2025-06-26T16:26:27","modified_gmt":"2025-06-26T20:26:27","slug":"gdp-center-round-up-4th-international-conference-on-financing-for-development","status":"publish","type":"post","link":"https:\/\/www.bu.edu\/gdp\/2025\/06\/26\/gdp-center-round-up-4th-international-conference-on-financing-for-development\/","title":{"rendered":"GDP Center Round-up: 4th International Conference on Financing for Development"},"content":{"rendered":"<figure id=\"attachment30881\" aria-describedby=\"caption-attachment30881\" style=\"width: 716px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" src=\"\/gdp\/files\/2025\/06\/agustin-nunez-jrjhAuDeQ1w-unsplash-636x424.jpg\" alt=\"\" width=\"706\" height=\"470\" class=\" wp-image-30881\" srcset=\"https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/agustin-nunez-jrjhAuDeQ1w-unsplash-636x424.jpg 636w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/agustin-nunez-jrjhAuDeQ1w-unsplash-1024x683.jpg 1024w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/agustin-nunez-jrjhAuDeQ1w-unsplash-768x512.jpg 768w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/agustin-nunez-jrjhAuDeQ1w-unsplash-1536x1024.jpg 1536w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/agustin-nunez-jrjhAuDeQ1w-unsplash-2048x1366.jpg 2048w\" sizes=\"(max-width: 706px) 100vw, 706px\" \/><figcaption id=\"caption-attachment30881\" class=\"wp-caption-text\">Seville, Spain. Photo by Agust\u00edn N\u00fa\u00f1ez via Unsplash.<\/figcaption><\/figure>\n<p>By <a href=\"https:\/\/www.bu.edu\/gdp\/profile\/samantha-igo\/\" target=\"_blank\" rel=\"noopener noreferrer\">Samantha Igo<\/a><\/p>\n<p>As a <a href=\"https:\/\/www.theguardian.com\/environment\/2025\/jun\/13\/weather-tracker-europe-china-record-breaking-heatwaves\" target=\"_blank\" rel=\"noopener noreferrer\">record-breaking heat wave<\/a> strains energy grids and risks public health across Europe, policymakers, activists and experts convene in Seville, Spain from June 30 to July 3 for the highly anticipated <a href=\"https:\/\/financing.desa.un.org\/ffd4\" target=\"_blank\" rel=\"noopener noreferrer\">4th International Conference on Financing for Development<\/a> (FFD4).<\/p>\n<p>These rather rare policy events (the last was 10 years ago in Addis Ababa, Ethiopia) <a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/18\/faqs-what-can-be-expected-from-the-4th-international-conference-on-financing-for-development\/\" target=\"_blank\" rel=\"noopener noreferrer\">provide a forum<\/a> for the international community to renew a commitment to achieving the United Nations 2030 Sustainable Development Goals (SDGs) and Paris Agreement.<\/p>\n<p>While it may be threadbare to say that FFD4 comes at a vital historical moment, it is no less true. Progress on the SDGs is <a href=\"https:\/\/dashboards.sdgindex.org\/\" target=\"_blank\" rel=\"noopener noreferrer\">stagnating or slipping entirely<\/a> less than five years out from its eponymous deadline. Countries around the world are increasingly contending with the ruthless evidence of climate change while geopolitical instability injects the global economy with uncertainty, high interest rates and erratic trade policies. Much has also <a href=\"https:\/\/www.bu.edu\/gdp\/2025\/03\/12\/10-ways-financing-for-development-has-changed-in-10-years\/\" target=\"_blank\" rel=\"noopener noreferrer\">changed in the 10 years<\/a> since FFD3 in Addis Ababa, with many development indicators worsening in the decade since.<\/p>\n<p>It is no longer possible to ignore the brittleness of the international financial architecture (IFA) in the face of global challenges, and both the timing and rarity of this FFD conference establishes it as an <a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/18\/faqs-what-can-be-expected-from-the-4th-international-conference-on-financing-for-development\/\" target=\"_blank\" rel=\"noopener noreferrer\">inflection point<\/a> toward either progress or acquiescing to an untenable status quo.<\/p>\n<p>Ahead of FFD4, the Boston University Global Development Policy Center (GDP Center) has published a slew of research on IFA reform, the emerging debt crisis in developing countries, China\u2019s overseas lending, resource mobilization and more to inform policy dialogues. Brief summaries of key issue areas and accompanying resources are provided below.<\/p>\n<h6><strong>FFD4 Resources:<\/strong><\/h6>\n<ul>\n<li><strong>Blog: <\/strong><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/18\/faqs-what-can-be-expected-from-the-4th-international-conference-on-financing-for-development\/\" target=\"_blank\" rel=\"noopener noreferrer\">FAQs: What Can be Expected from the 4th International Conference on Financing for Development?<\/a><\/li>\n<li><strong>Blog: <\/strong><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/03\/12\/10-ways-financing-for-development-has-changed-in-10-years\/\" target=\"_blank\" rel=\"noopener noreferrer\">10 Ways Financing for Development has Changed in 10 years<\/a><\/li>\n<\/ul>\n<hr \/>\n<h5><strong>Reimagining a fit-for-purpose international financial system<\/strong><\/h5>\n<figure id=\"attachment30196\" aria-describedby=\"caption-attachment30196\" style=\"width: 383px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" src=\"\/gdp\/files\/2025\/03\/tunde-buremo-xayCN6mrMZ8-unsplash-e1742577964617-636x449.jpg\" alt=\"\" width=\"373\" height=\"263\" class=\" wp-image-30196\" srcset=\"https:\/\/www.bu.edu\/gdp\/files\/2025\/03\/tunde-buremo-xayCN6mrMZ8-unsplash-e1742577964617-636x449.jpg 636w, https:\/\/www.bu.edu\/gdp\/files\/2025\/03\/tunde-buremo-xayCN6mrMZ8-unsplash-e1742577964617-1024x722.jpg 1024w, https:\/\/www.bu.edu\/gdp\/files\/2025\/03\/tunde-buremo-xayCN6mrMZ8-unsplash-e1742577964617-768x542.jpg 768w, https:\/\/www.bu.edu\/gdp\/files\/2025\/03\/tunde-buremo-xayCN6mrMZ8-unsplash-e1742577964617-1536x1084.jpg 1536w, https:\/\/www.bu.edu\/gdp\/files\/2025\/03\/tunde-buremo-xayCN6mrMZ8-unsplash-e1742577964617-2048x1445.jpg 2048w\" sizes=\"(max-width: 373px) 100vw, 373px\" \/><figcaption id=\"caption-attachment30196\" class=\"wp-caption-text\">Lagos, Nigeria. Photo by Tunde Buremo via Unsplash.<\/figcaption><\/figure>\n<p>The international financial system that emerged in the wake of World War II and during the slow disintegration of colonialism was <span><a href=\"https:\/\/www.bu.edu\/gdp\/2024\/07\/22\/the-bretton-woods-institutions-at-80-towards-a-bigger-better-and-more-inclusive-global-economic-governance-architecture\/\" target=\"_blank\" rel=\"noopener noreferrer\">not designed<\/a><\/span> for a modern world contending with climate change. Today, leaders are futilely relying on the institutions of the past to solve the problems of the present and future.<\/p>\n<p>To remedy this misalignment, the international financial system should be made bigger, better and more inclusive. Experts <span><a href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/finance-for-climate-action-scaling-up-investment-for-climate-and-development\/\" target=\"_blank\" rel=\"noopener noreferrer\">estimate<\/a><\/span> that emerging market and developing economies (EMDEs), excluding China, will need to mobilize $3 trillion annually by 2030 to meet shared climate and development goals. As the World Bank chief economist <span><a href=\"https:\/\/www.worldbank.org\/en\/programs\/debt-statistics\/idr\/products\" target=\"_blank\" rel=\"noopener noreferrer\">admits<\/a><\/span> that the \u201cbillions to trillions\u201d strategy of leveraging public money to catalyze private investment has \u201cproved to be a fantasy,\u201d development finance institutions (DFIs) must play a central role in closing this finance gap. Domestic efforts to secure resources need to be reinforced by a retooling of the <span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/26\/investing-in-climate-and-development-the-evolving-role-of-the-international-financial-and-tax-architectures\/\" target=\"_blank\" rel=\"noopener noreferrer\">global tax architecture<\/a>.<\/span><\/p>\n<p>However, bigger does not alone imply better. A big investment push must be accompanied by appropriate lending and governance practices. For example, debt sustainability analyses (DSAs) at the International Monetary Fund (IMF) and World Bank <span><a href=\"https:\/\/www.bu.edu\/gdp\/2024\/09\/30\/room-to-grow-integrating-climate-change-in-debt-sustainability-analyses-for-low-income-countries\/\" target=\"_blank\" rel=\"noopener noreferrer\">should account<\/a><\/span> for both climate investments and shocks, and these institutions should move away from austerity-backed programs toward <span><a href=\"https:\/\/www.bu.edu\/gdp\/2024\/10\/09\/imf-2030-a-transformative-action-agenda-for-achieving-climate-and-development-goals\/\" target=\"_blank\" rel=\"noopener noreferrer\">investment-led structural transformation<\/a><\/span>. Policy advice needs to be <a href=\"https:\/\/www.bu.edu\/gdp\/2023\/03\/24\/the-international-monetary-fund-climate-and-development-a-preliminary-assessment\/\" target=\"_blank\" rel=\"noopener noreferrer\">context-specific<\/a> and recognize that common prescriptions like carbon taxes alone <span><a href=\"https:\/\/www.bu.edu\/gdp\/2023\/11\/27\/economic-and-fiscal-implications-of-climate-change-for-vulnerable-countries-in-central-america-and-the-caribbean\/\" target=\"_blank\" rel=\"noopener noreferrer\">will not offset<\/a><\/span> the financial strain many countries will experience during a low-carbon transition.<\/p>\n<p>Finally, voting power at neither the IMF nor the World Bank <span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/04\/14\/a-challenging-imperative-imf-reform-the-17th-quota-review-and-increasing-voice-and-representation-for-developing-countries\/\" target=\"_blank\" rel=\"noopener noreferrer\">accurately reflects<\/a><\/span> the economic weight of EMDEs, instead awarding outsized influence to advanced economies like the United States. Not only does this leave developing countries with little sway over institutional governance, but it also <span><a href=\"https:\/\/www.bu.edu\/gdp\/2023\/10\/05\/counting-on-the-international-monetary-fund-aligning-the-imf-quota-system-with-global-need\/\" target=\"_blank\" rel=\"noopener noreferrer\">risks the very legitimacy<\/a><\/span> of the Bretton Woods institutions.<\/p>\n<p><strong>The bottom line: <\/strong>An unreformed IFA cannot help deliver on shared climate and development goals and will instead lock countries into catastrophic climate and development trajectories. The system must be made bigger to deliver the scale of lending required, better with enhanced lending and governance practices, and more inclusive with realigned voice and representation for Global South countries.<\/p>\n<h6><strong>Resources on IFA reform:<\/strong><\/h6>\n<ul>\n<li><strong>Policy brief: <\/strong><span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/26\/investing-in-climate-and-development-the-evolving-role-of-the-international-financial-and-tax-architectures\/\" target=\"_blank\" rel=\"noopener noreferrer\">Investing in Climate and Development: The Evolving Role of the International Financial and Tax Architectures<\/a><\/span><\/li>\n<li><strong>Policy brief: <\/strong><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/04\/16\/back-to-the-future-how-the-pre-oecd-global-tax-landscape-offers-lessons-for-today\/\" target=\"_blank\" rel=\"noopener noreferrer\">Back to the Future: How the Pre-OECD Global Tax Landscape Offers Lessons for Today<\/a><\/li>\n<li><strong>Working paper: <\/strong><span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/03\/24\/the-international-financial-architecture-and-sustainable-prosperity\/\" target=\"_blank\" rel=\"noopener noreferrer\">The International Financial Architecture and Sustainable Prosperity<\/a><\/span><\/li>\n<\/ul>\n<hr \/>\n<h5><strong>A debt and development crisis stymies developing countries<\/strong><\/h5>\n<figure id=\"attachment30611\" aria-describedby=\"caption-attachment30611\" style=\"width: 391px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" src=\"\/gdp\/files\/2025\/05\/roberto-zuniga-Wt4siPOV3z4-unsplash-636x424.jpg\" alt=\"\" width=\"381\" height=\"254\" class=\" wp-image-30611\" srcset=\"https:\/\/www.bu.edu\/gdp\/files\/2025\/05\/roberto-zuniga-Wt4siPOV3z4-unsplash-636x424.jpg 636w, https:\/\/www.bu.edu\/gdp\/files\/2025\/05\/roberto-zuniga-Wt4siPOV3z4-unsplash-1024x682.jpg 1024w, https:\/\/www.bu.edu\/gdp\/files\/2025\/05\/roberto-zuniga-Wt4siPOV3z4-unsplash-768x512.jpg 768w, https:\/\/www.bu.edu\/gdp\/files\/2025\/05\/roberto-zuniga-Wt4siPOV3z4-unsplash-1536x1023.jpg 1536w, https:\/\/www.bu.edu\/gdp\/files\/2025\/05\/roberto-zuniga-Wt4siPOV3z4-unsplash-2048x1364.jpg 2048w\" sizes=\"(max-width: 381px) 100vw, 381px\" \/><figcaption id=\"caption-attachment30611\" class=\"wp-caption-text\">Masachapa, Nicaragua. Photo by Roberto Zuniga.<\/figcaption><\/figure>\n<p>Developing countries face historic levels of external debt, with 3.3 billion people living in countries <span><a href=\"https:\/\/unctad.org\/publication\/world-of-debt\" target=\"_blank\" rel=\"noopener noreferrer\">spending more<\/a><\/span> on servicing their debt than on health and education. At least 30 African countries alone <span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/05\/15\/diverting-development-the-g20-and-external-debt-service-burden-in-africa\/\" target=\"_blank\" rel=\"noopener noreferrer\">spend more<\/a><\/span> on debt service than public health.<\/p>\n<p>Climate-vulnerable countries in particular are left to contend with a relentless debt and climate cycle: without the <span><a href=\"https:\/\/www.bu.edu\/gdp\/2024\/04\/14\/defaulting-on-development-and-climate-debt-sustainability-and-the-race-for-the-2030-agenda-and-paris-agreement\/\" target=\"_blank\" rel=\"noopener noreferrer\">fiscal space<\/a><\/span> to invest in climate and development measures, climate-vulnerable development countries are left worse off in the aftermath of a climate event. A bloc of climate-vulnerable countries called the Vulnerable Group of 20 (V20) <span><a href=\"https:\/\/www.v-20.org\/resources\/publications\/climate-vulnerable-economies-loss-report\" target=\"_blank\" rel=\"noopener noreferrer\">found<\/a><\/span> that these countries would have been 20 percent wealthier today had it not been for the losses and damages incurred from climate change.<\/p>\n<p>Recognizing the severity of the moment, Pope Francis <span><a href=\"https:\/\/ipdcolumbia.org\/event\/jubilee-commission-on-addressing-the-debt-and-development-crises-in-countries-from-the-south\/\" target=\"_blank\" rel=\"noopener noreferrer\">convened<\/a><\/span> a Jubilee Commission, mirroring the Jubilee year in 2000 and the Heavily Indebted Poor Countries Initiative that ultimately <span><a href=\"https:\/\/www.worldbank.org\/en\/topic\/debt\/brief\/hipc\" target=\"_blank\" rel=\"noopener noreferrer\">relieved<\/a><\/span> 37 countries of more than $100 billion in debt. A <span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/25\/the-jubilee-report-a-blueprint-for-tackling-the-debt-and-development-crises-and-creating-the-financial-foundations-for-a-sustainable-people-centered-global-economy\/\" target=\"_blank\" rel=\"noopener noreferrer\">new report<\/a><\/span> from the Jubilee Commission calls for a comprehensive rethink of the international debt architecture and provides a blueprint for enabling developing countries to achieve sustainable debt levels while also investing in critical social spending.<\/p>\n<p><strong>The bottom line: <\/strong>Without enhanced DSAs and <span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/05\/15\/diverting-development-the-g20-and-external-debt-service-burden-in-africa\/\" target=\"_blank\" rel=\"noopener noreferrer\">reformed debt restructuring mechanisms<\/a><\/span>, such as the Group of 20 (G20) Common Framework, the SDGs and Paris Agreement will be unattainable, and the social costs for developing countries will be dire. This is a pivotal policy moment to free many debt-distressed developing countries of the vicious debt-climate cycle and instead invest in structural change.<\/p>\n<h6><strong>Resources on debt:<\/strong><\/h6>\n<ul>\n<li><strong>Report: <\/strong><span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/25\/the-jubilee-report-a-blueprint-for-tackling-the-debt-and-development-crises-and-creating-the-financial-foundations-for-a-sustainable-people-centered-global-economy\/\" target=\"_blank\" rel=\"noopener noreferrer\">The Jubilee Report: A Blueprint for Tackling the Debt and Development Crises and Creating the Financial Foundations for a Sustainable People-Centered Global Economy<\/a><\/span><\/li>\n<li><strong>Report: <\/strong><span><a href=\"https:\/\/debtnatureclimate.org\/reports\/healthy-debt-on-a-healthy-planet-towards-a-virtuous-circle-of-sovereign-debt-nature-and-climate-resilience\/\" target=\"_blank\" rel=\"noopener noreferrer\">Healthy Debt on a Healthy Planet: Towards a Virtuous Circle of Sovereign Debt, Nature and Climate Resilience<\/a><\/span><\/li>\n<li><strong>Journal article: <\/strong><span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/05\/27\/debt-sustainability-analysis-as-if-development-really-mattered\/\" target=\"_blank\" rel=\"noopener noreferrer\">Debt Sustainability Analysis as if Development Really Mattered<\/a><\/span><\/li>\n<li><strong>Working paper: <\/strong><span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/05\/15\/diverting-development-the-g20-and-external-debt-service-burden-in-africa\/\" target=\"_blank\" rel=\"noopener noreferrer\">Diverting Development: The G20 and External Debt Service Burden in Africa<\/a><\/span><\/li>\n<li><strong>Blog: <\/strong><span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/18\/the-cost-of-inaction-explaining-africas-debt-distress-in-10-charts-and-five-fixes-for-the-g20\/\" target=\"_blank\" rel=\"noopener noreferrer\">The Cost of Inaction: Explaining Africa\u2019s Debt Distress in 10 Charts \u2014 and Five Fixes for the G20<\/a><\/span><\/li>\n<\/ul>\n<hr \/>\n<h5><strong>China\u2019s overseas finance shifts toward green energy and away from individual project finance<\/strong><\/h5>\n<figure id=\"attachment30733\" aria-describedby=\"caption-attachment30733\" style=\"width: 347px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" src=\"\/gdp\/files\/2025\/06\/luka-korica-EkjkHpDyVZI-unsplash-636x476.jpg\" alt=\"\" width=\"337\" height=\"252\" class=\" wp-image-30733\" srcset=\"https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/luka-korica-EkjkHpDyVZI-unsplash-636x476.jpg 636w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/luka-korica-EkjkHpDyVZI-unsplash-1024x767.jpg 1024w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/luka-korica-EkjkHpDyVZI-unsplash-768x575.jpg 768w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/luka-korica-EkjkHpDyVZI-unsplash-1536x1151.jpg 1536w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/luka-korica-EkjkHpDyVZI-unsplash-2048x1534.jpg 2048w\" sizes=\"(max-width: 337px) 100vw, 337px\" \/><figcaption id=\"caption-attachment30733\" class=\"wp-caption-text\">Vi\u0161egrad, Bosnia and Herzegovina. Photo by Luka Korica via Unsplash<\/figcaption><\/figure>\n<p>For over 15 years, China has been a vital source of development finance for low- and middle-income countries (LMICs) around the world, committing nearly a half-trillion dollars in public and publicly guaranteed (PPG) finance since 2008.<\/p>\n<p>New research from two databases maintained by the GDP Center reveals two key trends for China\u2019s overseas finance. First, the composition of Chinese overseas energy finance for both foreign direct investment (FDI) and DFIs has <a href=\"https:\/\/www.bu.edu\/gdp\/2025\/04\/28\/no-new-coal-a-shift-in-the-composition-of-chinas-overseas-power-plant-portfolio\/\" target=\"_blank\" rel=\"noopener noreferrer\">shifted to green energy<\/a>, and there has been no new investment in coal-fired power plants since Chinese leader <span>Xi Jinping&#8217;s pledge to stop coal funding in 2021<\/span>. <span>However, while China has not financed coal since its no new coal policy, previously approved projects already in the pipeline are being completed and still coming online.<\/span> This means that China\u2019s overseas energy portfolio will remain heavily carbon intensive for some time, despite this nascent shift toward green energy.<\/p>\n<p>Second, for the first time from 2020-2024, China\u2019s overseas development finance is <a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/10\/peer-to-peer-lending-chinas-overseas-development-finance-pivots-to-national-and-regional-development-banks\/\" target=\"_blank\" rel=\"noopener noreferrer\">shifting away from direct project finance<\/a> and toward support of development finance intermediaries, like national and regional development banks. This is a notable shift, as direct support for energy and infrastructure projects comprised the lion\u2019s share of its overseas development finance prior to 2020, and could indicate a maturation of the Belt and Road Initiative (BRI).<\/p>\n<p><strong>The bottom line: <\/strong>The data reflect an interregnum for China\u2019s overseas finance. As China moves away from direct project lending and its overseas energy portfolio no longer matches its previous scale, developing a <a href=\"https:\/\/www.bu.edu\/gdp\/2024\/06\/20\/evaluating-regional-prefeasibility-facilities-expanding-renewable-energy-and-energy-access-in-the-sadc-region\/\" target=\"_blank\" rel=\"noopener noreferrer\">stronger project pipeline<\/a> that better addresses environmental and social risks while promoting renewable energy will become increasingly important.<\/p>\n<h6><strong>Resources on China&#8217;s economic activity:<\/strong><\/h6>\n<ul>\n<li><strong>Database: <\/strong><a href=\"https:\/\/www.bu.edu\/gdp\/chinas-overseas-development-finance\/\" target=\"_blank\" rel=\"noopener noreferrer\">China\u2019s Overseas Development Finance Database<\/a><\/li>\n<li><strong>Database: <\/strong><a href=\"https:\/\/www.bu.edu\/cgp\/\" target=\"_blank\" rel=\"noopener noreferrer\">China\u2019s Global Power Database<\/a><\/li>\n<li><strong>Policy brief:<\/strong> <a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/10\/peer-to-peer-lending-chinas-overseas-development-finance-pivots-to-national-and-regional-development-banks\/\" target=\"_blank\" rel=\"noopener noreferrer\">Peer-to-Peer Lending: China\u2019s Overseas Development Finance Pivots to National and Regional Development Banks<\/a><\/li>\n<li><strong>Working paper: <\/strong><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/23\/empowering-africa-the-impact-of-chinas-power-finance-on-energy-poverty\/\" target=\"_blank\" rel=\"noopener noreferrer\">Empowering Africa: The Impact of China\u2019s Power Finance on Energy Poverty<\/a><\/li>\n<li><strong>Working paper: <\/strong><a href=\"https:\/\/www.bu.edu\/gdp\/2024\/05\/20\/direct-impacts-and-spatial-spillovers-the-impact-of-chinese-infrastructure-projects-on-economic-activities-in-sub-saharan-africa\/\" target=\"_blank\" rel=\"noopener noreferrer\">Direct Impacts and Spatial Spillovers: The Impact of Chinese Infrastructure Projects on Economic Activities in sub-Saharan Africa<\/a><\/li>\n<\/ul>\n<hr \/>\n<h5><strong>Scaling up multilateral development banks to meet global need<\/strong><\/h5>\n<figure id=\"attachment30871\" aria-describedby=\"caption-attachment30871\" style=\"width: 318px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" src=\"\/gdp\/files\/2025\/06\/elim1129-5E4Cp014Bvc-unsplash-636x413.jpg\" alt=\"\" width=\"308\" height=\"200\" class=\" wp-image-30871\" srcset=\"https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/elim1129-5E4Cp014Bvc-unsplash-636x413.jpg 636w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/elim1129-5E4Cp014Bvc-unsplash-1024x665.jpg 1024w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/elim1129-5E4Cp014Bvc-unsplash-768x499.jpg 768w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/elim1129-5E4Cp014Bvc-unsplash-1536x998.jpg 1536w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/elim1129-5E4Cp014Bvc-unsplash-2048x1330.jpg 2048w\" sizes=\"(max-width: 308px) 100vw, 308px\" \/><figcaption id=\"caption-attachment30871\" class=\"wp-caption-text\">Beijing, China. Photo by \u65b9 \u67aa\u67aa via Unsplash.<\/figcaption><\/figure>\n<p>Multilateral development banks (MDBs) are <span><a href=\"https:\/\/www.bu.edu\/gdp\/2024\/09\/04\/negotiating-in-the-dark-how-to-account-for-the-multilateral-development-banks-in-the-new-collective-quantified-goal\/\" target=\"_blank\" rel=\"noopener noreferrer\">poised<\/a><\/span> to be an indispensable driver of climate finance but are, as of yet, <span><a href=\"https:\/\/www.bu.edu\/gdp\/2024\/10\/25\/energizing-mdb-financing-capacity-identifying-and-filling-gaps-to-raise-ambition-for-the-2030-agenda-and-beyond\/\" target=\"_blank\" rel=\"noopener noreferrer\">not appropriately scaled<\/a><\/span> to meet such demand. And with governments around the world <a href=\"https:\/\/www.forbes.com\/sites\/globalcitizen\/2025\/02\/25\/foreign-aid-is-shrinking-what-happens-next\/\" target=\"_blank\" rel=\"noopener noreferrer\">cutting<\/a> their aid budgets and private capital still hesitant to move into emerging markets, DFIs must play a key role in closing this finance gap.<\/p>\n<p>The G20 Brazilian Presidency took up energizing MDBs as a cornerstone of its platform, resulting in the <span><a href=\"https:\/\/coebank.org\/documents\/1577\/G20_Roadmap_towards_better_bigger_and_more_effective_MDBs_q3jhd4A.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">G20 Roadmap on Bigger, Better and More Effective MDBs<\/a><\/span>, and the FFD4 <span><a href=\"https:\/\/financing.desa.un.org\/sites\/default\/files\/ffd4-documents\/2025\/Compromiso%20de%20Sevilla%20for%20action%2016%20June.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">outcome document<\/a><\/span> now calls for the tripling in size of MDBs. A core recommendation from the G20 roadmap was establishing the use of resource needs reviews. MDBs currently have <span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/25\/multilateral-development-banks-and-financing-for-development-the-role-of-resource-needs-reviews\/\" target=\"_blank\" rel=\"noopener noreferrer\">no institutionalized means<\/a><\/span> of increasing capital, and past increases reflect path dependencies based on previous increases, rather than an evidence-based approach that adequately accounts for need and individual MDB risk profile. These resource needs reviews would do <span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/25\/are-multilateral-development-banks-big-enough-and-how-can-we-tell\/\" target=\"_blank\" rel=\"noopener noreferrer\">three important things<\/a><\/span>: they would increase transparency, shifting away from ad hoc capital injections; they would help MDBs navigate trade-offs of expanding financing while reducing risk to the MDB itself; and they would better facilitate MDBs working together as a system, in tandem with regional and national development banks.<\/p>\n<p><strong>The bottom line: <\/strong>MDBs must evolve to meet the needs of current global challenges. They must grow to reflect a scale commensurate with the aspirations of their borrowers, and the whole system of MDBs must work more closely to realize its as of yet largely untapped potential in supporting this transformation.<\/p>\n<h6><strong>\u00a0<\/strong><strong>Resources on scaling up MDBs:<\/strong><strong>\u00a0<\/strong><\/h6>\n<ul>\n<li><strong>Report: <\/strong><span><a href=\"https:\/\/www.bu.edu\/gdp\/2024\/10\/25\/energizing-mdb-financing-capacity-identifying-and-filling-gaps-to-raise-ambition-for-the-2030-agenda-and-beyond\/\" target=\"_blank\" rel=\"noopener noreferrer\">Energizing MDB Financing Capacity: Identifying and Filling Gaps to Raise Ambition for the 2030 Agenda and Beyond<\/a><\/span><\/li>\n<li><strong>Report: <\/strong><span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/02\/18\/blending-from-the-ground-up-multilateral-and-national-development-bank-collaboration-to-scale-climate-finance\/\" target=\"_blank\" rel=\"noopener noreferrer\">Blending from the Ground Up: Multilateral and National Development Bank Collaboration to Scale Climate Finance<\/a><\/span><\/li>\n<li><strong>Working paper: <\/strong><span><a href=\"https:\/\/www.bu.edu\/gdp\/2025\/06\/25\/multilateral-development-banks-and-financing-for-development-the-role-of-resource-needs-reviews\/\" target=\"_blank\" rel=\"noopener noreferrer\">Multilateral Development Banks and Financing for Development: The Role of Resource Needs Reviews<\/a><\/span><\/li>\n<\/ul>\n<hr \/>\n<h5><strong>Events<\/strong><\/h5>\n<figure id=\"attachment30817\" aria-describedby=\"caption-attachment30817\" style=\"width: 372px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" src=\"\/gdp\/files\/2025\/06\/nerina-crivaro-ra-jWI9X8ng-unsplash-636x404.jpg\" alt=\"\" width=\"362\" height=\"230\" class=\" wp-image-30817\" srcset=\"https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/nerina-crivaro-ra-jWI9X8ng-unsplash-636x404.jpg 636w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/nerina-crivaro-ra-jWI9X8ng-unsplash-1024x651.jpg 1024w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/nerina-crivaro-ra-jWI9X8ng-unsplash-768x488.jpg 768w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/nerina-crivaro-ra-jWI9X8ng-unsplash-1536x977.jpg 1536w, https:\/\/www.bu.edu\/gdp\/files\/2025\/06\/nerina-crivaro-ra-jWI9X8ng-unsplash-2048x1303.jpg 2048w\" sizes=\"(max-width: 362px) 100vw, 362px\" \/><figcaption id=\"caption-attachment30817\" class=\"wp-caption-text\">Buenos Aires, Argentina. Photo by Nerina Crivaro via Unsplash.<\/figcaption><\/figure>\n<p>GDP Center researchers and staff are participating in several official FFD4 events on topics ranging from sovereign debt and sustainable development to China and the future of development finance. Find more event details below.<\/p>\n<p><strong>June 30<\/strong><\/p>\n<p><span><strong><a href=\"https:\/\/www.bu.edu\/gdp\/events\/?eid=309011\" target=\"_blank\" rel=\"noopener noreferrer\">China and the Future of Global Development Finance<\/a><\/strong>: An o<\/span>fficial Offsite Side Event evaluating the past and considering the promise of Chinese development finance moving forward.<\/p>\n<p><strong>July 1<\/strong><\/p>\n<p><span><a href=\"https:\/\/www.bu.edu\/gdp\/events\/?eid=309012\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Sovereign Debt and Sustained Development: Breaking the Vicious Cycle and Building New Patterns of Resilience<\/strong><\/a>: An o<\/span>fficial Offsite Side Event seeking to deepen understanding of the vicious cycle of debt and climate and explore alternative approaches to debt resolution and sustainable development.<\/p>\n<p><strong>July 2<\/strong><\/p>\n<p><span><strong><a href=\"https:\/\/www.bu.edu\/gdp\/events\/?eid=309030\" target=\"_blank\" rel=\"noopener noreferrer\">Powering the Investment Push for Sustainable Development through International Financial Architecture Reform<\/a><\/strong>: An o<\/span>fficial Side Event exploring how FFD4 can help spur a systemic transformation necessary for the investment push to achieve the SDGs.<strong>\u00a0<\/strong><\/p>\n<p><span><a href=\"https:\/\/www.bu.edu\/gdp\/events\/?eid=309031\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Redesigning the System: Proposals for International Debt Architecture Reform<\/strong><\/a>: An o<\/span>fficial Offsite Side Event evaluating practical steps to building a debt architecture fit for responding to 21st century challenges and better equipping to support the world\u2019s most vulnerable nations.<\/p>\n<p><strong>July 3\u00a0<\/strong><\/p>\n<p><span><strong><a href=\"https:\/\/www.bu.edu\/gdp\/events\/?eid=309064\" target=\"_blank\" rel=\"noopener noreferrer\">Rethinking Debt Sustainability to Kickstart Growth<\/a><\/strong>: An o<\/span>fficial Side Event assessing the impact of debt sustainability analyses on how LMICs tackle not only their debt burden but also their economic growth and sustainable development.<\/p>\n<ul><\/ul>\n<ul><\/ul>\n<ul><\/ul>\n<p>*<\/p>\n<p><em>Never miss an update: <\/em><span><a href=\"http:\/\/gdpcenter.org\/GDPC-Subscribe\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Subscribe to the GDP Center Newsletters.<\/em><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Samantha Igo As a record-breaking heat wave strains energy grids and risks public health across Europe, policymakers, activists and experts convene in Seville, Spain from June 30 to July 3 for the highly anticipated 4th International Conference on Financing for Development (FFD4). These rather rare policy events (the last was 10 years ago in [&hellip;]<\/p>\n","protected":false},"author":19363,"featured_media":30881,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[398,66,73,1070,55,156,72,77,144,1074,1247,1958],"tags":[4670,757,394,501,800,500,505,592,4443,4839,4840,4679,4680,4717,4621,4040,429,2056,1514,558,465,4828,1243,1205,440,4820,3907,4822],"_links":{"self":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts\/30866"}],"collection":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/users\/19363"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/comments?post=30866"}],"version-history":[{"count":17,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts\/30866\/revisions"}],"predecessor-version":[{"id":30895,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts\/30866\/revisions\/30895"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/media\/30881"}],"wp:attachment":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/media?parent=30866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/categories?post=30866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/tags?post=30866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}