Financing the SDGs in the Least Developed Countries (LDCs): Diversifying the Financing Tool-box and Managing Vulnerability

This joint report, published in May 2016, by UNDP and the French Development Agency (AFD) looks at how the Least Developed Countries (LDCs) can make better use of a more diverse financing for development ‘tool-box’. It looks at ways they can leverage more blended finance, guarantees and local currency financing, and how this financing can be used to support priority interventions such as investments in infrastructure and local private sector development. Financial instruments exist to support LDCs to manage their vulnerability. These include innovations such as GDP-indexed bonds and countercyclical loan contracts. Can these innovations be scaled-up and how can we ensure all financing is ‘risk-informed’? The report concludes with an action to improve LDCs’ access to the financing ‘tool-box’.

This report has been prepared as a contribution to the mid-term review of the Istanbul Programme of Action for the Least Developed Countries (LDCs), Antalya, Turkey 27-29 May 2016.

Download here.