Emerging markets and developing economies (EMDEs) face a historic investment opportunity: delivering USD 7.5 trillion annually of investment to reignite growth, reduce poverty, and meet the broader set of Sustainable Development Goals. While public finance remains crucial, private finance must fill the bulk of the gap. Three critical barriers, however, constrain private investment flows to EMDEs, including the lack of robust data and transparency on private finance, the shortcomings of development finance in mobilising private investment, as well as policy and regulatory frameworks that limit capital flows.
To address these barriers, the OECD proposes a systemic approach grounded in data, more and better development finance, and supportive policy environments. Unlocking the right kind of finance at the right time and scale will require bold political leadership and international co-ordination. This paper sets the foundation for that effort - turning the promise of private capital into tangible outcomes for people, the planet and prosperity.
