Innovative Finance/

Build Global Economic Resilience

Mobilizing fit-for-purpose development finance for an inclusive, sustainable future
OVERVIEW

Forging a More Ambitious Development Finance System

Global

To achieve the United Nation’s Sustainable Development Goals (SDGs), Paris Agreement climate goals, and address the biggest challenges of our time, the global community faces a sizeable financing gap. With the onset of the Covid-19 pandemic, the Organization for Economic Co-operation and Development estimates that the annual financing gap for achieving the SDGs now exceeds $3.7 trillion. Since then, compounding health, food, fuel, and economic crises, along with rising global interest rates, are further straining countries’ financial resources.

A more ambitious development and climate finance system – comprised of aid, multilateral development banks (MDBs), private capital, domestic resources, and philanthropic capital – is needed to close the financing gap and facilitate the achievement of local, national, and global goals.

  • 240million

    people who have been pushed into poverty as a result of the pandemic

  • $550billion

    estimated by IMF, is needed by low-income countries through 2025 to recover from the pandemic and return to their pre-crisis convergence path with advanced economies

  • ~$3.7trillion

    in annual investments through 2025 to attain net zero emissions

Our Approach

At The Rockefeller Foundation, we aim to foster a development finance system that channels funding at the scale, quality, and pace necessary to manage crises, achieve sustainable development the SDGs, and fight climate change.

The Rockefeller Foundation’s Global Economic Resilience team works with thought leaders to develop new policy solutions, convenes decisionmakers to build consensus, and supports advocacy movements to deliver key reforms. We focus on areas of the global financial architecture that have the highest potential for mobilizing substantially more public and private financing for the purpose of achieving the SDGs and Paris Agreement goals.

Until recently, developing countries’ GDPs had grown considerably faster than those of advanced countries. This led to convergence between wealthy and poor nations that enabled the spread of peace and democracy. Yet, multiple compounding crises including the Covid-19 pandemic and the war in Ukraine has reversed progress toward the SDGs and slowed the pace of urgent climate action. Unfortunately, the global development model is not meeting the moment — failing to rebuild resilience while the climate crisis undermines it.

We support the evolution of the global financial system in a way that rebalances resources consistent with climate-related goals and sustainable development.

  • Climate change requires a new financial architecture for us all.
    Mia Mottley
    Prime Minister of Barbados
  • Report

    Reimagining the Role of Multilateral Development Banks

    We must reimagine the decades-old global economic order and unlock the full potential of its institutions. Just as World War II established these organizations, this crisis now requires us to urgently reimagine them and put them to better use. This roadmap identifies actionable recommendations and short-term priorities that would allow the multilateral development banks (MDBs) to increase their lending powers without diminishing their financial standing or their credit ratings.
    Download PDF
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