If traditional donor grants have become politically toxic or financially burdensome for rich countries, why don’t they instead issue 100-year, ultra-low-interest bonds to multilateral development banks? This simple idea is neither radical nor unprecedented, and it would be a game-changer for developing economies.
BEIJING – In recent years, the world’s poorest and most climate-vulnerable countries have made one thing clear: the current system for financing development in low- and middle-income economies is not working. At annual climate conferences and through landmark reform efforts like the Bridgetown Initiative, these governments have been demanding – loudly and persistently – that richer countries do more and do it better.
BEIJING – In recent years, the world’s poorest and most climate-vulnerable countries have made one thing clear: the current system for financing development in low- and middle-income economies is not working. At annual climate conferences and through landmark reform efforts like the Bridgetown Initiative, these governments have been demanding – loudly and persistently – that richer countries do more and do it better.