2020 Financing for Sustainable Development Report: Domestic and International Private Business and Finance

Cover of the 2020 Financing for Sustainable Development Report

Unlocking private business and finance is one of the greatest challenges to achieving sustainable development and reinvigorating the economy following the impact of the COVID-19 crisis.

On a country level, Governments have several levers that they can use to create a thriving business environment and reduce investment risks. To help prioritize actions, policymakers should identify and target binding constraints to private sector development in support of the Sustainable Development Goals. This could include a range of areas: The first area is strengthening the legal and regulatory environment. The second is providing infrastructure services essential for sustainable development and the functioning of the economy. Despite all the initiatives in this area, infrastructure gaps remain considerable between developed and developing countries. The international community should further help countries build the internal capacity necessary to deliver cost-efficient and resilient infrastructure solutions, including developing “investible projects” when feasible. The third is addressing financial constraints, particularly affecting micro, small and medium-sized enterprises. This requires harnessing techno- logical advancements, for instance to overcome data gaps for credit risk assessment.