Judith Karl is the Executive Secretary of the UN Capital Development Fund. The UN Capital Development Fund makes public and private finance work for the poor in the world’s 48 least developed countries (LDCs).
These are the personal views of the author and do not necessarily reflect the views of the United Nations.
Moving from traditional resource transfer models to innovative financing solutions that shift the dynamics of where finance flows within a country is important for meeting the Sustainable Development Goals (SDGs). There is untapped potential for blended finance models to use international public finance, notably Official Development Assistance (ODA), to unlock additional resources and channel them to the families, local governments and Small- and Medium-sized Enterprises (SMEs) that are underserved and where resources are most scarce. This can be achieved by deploying ODA in the form of technical assistance as well as capital grants, concessional loans and guarantees in ways that de-risk and catalyse public and private, domestic and international, investments to support economic transformation at the local level and tackle entrenched inequities and exclusions.