An Enquiry into the Evolving Landscape of Development Finance Flows

Abstract

This paper reviews how the landscape of global development finance flow has evolved over the last decade and a half with the evolution of the global development agenda. External flow of development finance, particularly the official development assistance (ODA), could not live up to the greater financing needs for the attainment of the ambitious Sustainable Development Goals (SDGs) by 2030. Indeed, incremental ODA has largely catered the growing need for humanitarian assistance during the early years of SDGs era. In contrast, South-South financial flows and new innovative financing sources, such as blended finance, have become more prominent. In view of the current landscape, the paper finds it imperative to rethink the issues related to harmonisation, transparency and accessibility of data for external development financial flows, both traditional and non-traditional, as they remain critical for assessing development effectiveness. The paper reinforces the significance of efficient allocation of development finance along with scaling up the volume when it comes to the generation of development results.