Financing
in sentence
2025 examples of Financing in a sentence
The search for additional and more stable funding to meet the MDG’s has led to various proposals for innovative
financing
mechanisms and debt relief, in particular by British Chancellor of the Exchequer Gordon Brown.
But the broad range of proposed schemes to bolster resources for development assistance raises hard questions about the appropriate balance between objective needs and sound and effective
financing.
Donors as well as recipients must ensure consistency between
financing
and absorptive capacity.
They must also ensure that additional official
financing
and debt relief will not distort incentives or create moral hazard.
In addition to these issues,
financing
proposals to achieve the MDG’s should be discussed from a central banker’s perspective.
“Innovative”
financing
solutions might also undermine the clear assignment of responsibilities for raising and using public money.
Indeed, the term “innovative
financing
mechanism” conjures the idea that there is an easy way to meet the MDG’s.
But, in the end, there are only three ways to secure additional
financing
for development aid or debt relief: higher taxes, increased indebtedness (that is, higher taxes for future generations), and/or monetary expansion.
Financing
development aid with SDR’s – or even to replace budget-financed aid with such allocations – is comparable to
financing
budget deficits with central bank money.
But doing so makes sense only if that
financing
is used to move the world economy in a direction consistent with the United Nations Sustainable Development Goals (SDGs) and the 2015 Paris climate agreement.
Although global economic growth is accelerating, private-sector
financing
of infrastructure has been falling, according to the World Bank, from $210 billion in 2010 to $38 billion in 2017.
And while national governments provide more than 75% of
financing
for infrastructure, they tend to avoid massive expenditures for new projects, particularly sustainable infrastructure.
To that end, in 2015, the World Bank and other MDBs launched a strategy to increase development
financing
“from billions to trillions,” by using public finance to “crowd in” private investment, especially from large institutional investors like pension and insurance funds.
That said, a blank check would be disastrous, given that the current
financing
pattern of the MDBs – and particularly the World Bank Group – is highly carbon-intensive.
The concern is that countries that are dependent on foreign
financing
could be hit by sudden outflows of international capital, or that currency depreciation following the Fed hike could raise debt-servicing costs for countries and businesses.
One of the UNFCCC’s top priorities is to secure
financing
to scale up developing countries’ mitigation and adaptation efforts, thereby mobilizing the capacity and goodwill of historical emitters to catalyze further innovation.
Second, the focus of debate about development
financing
has broadened from the quantity of aid to its quality – including its power to leverage other sources of finance.
In this changing economic landscape,
financing
a transformative development agenda will require an unprecedented level of cooperation among governments, donors, and the private sector, as well as policies and institutions that facilitate more efficient use of existing resources and attract new and diverse sources of funding.
The WBG report points to four foundational pillars of development financing: domestic resource mobilization; better and smarter aid; domestic private finance; and external private finance.
On the contrary, better and smarter aid is critical to
financing
the post-2015 development agenda.
As a result, over the last few decades, ODA has played a central role in lifting people from extreme poverty,
financing
investments in human and physical infrastructure, and smoothing the path of economic reform.
For example, they can channel aid toward sectors like health care and education, where private finance is unlikely to materialize, while using ODA to attract more private-sector financing, such as through public-private partnerships or mitigation of investment risk.
This approach to development
financing
is not entirely new.
In 2002, the United Nations International Conference on
Financing
for Development produced the Monterrey Consensus, which emphasized the importance of domestic resource mobilization, aid, investment, trade, institutions, and policy coherence in
financing
development.
A “Monterrey II” meeting would help countries obtain a clearer and more realistic picture of the
financing
sources available, enabling them to prioritize the needed investments – and thus contribute to the successful launch of the post-2015 development agenda.
The switchover to new technologies is not mainly a matter of negotiation but of engineering, planning, financing, and incentives.
The negotiations would discuss the range of options open to each country and region – from CCS to solar, wind, and nuclear power – and would sketch a timetable for a new generation of low-emission automobiles, recognizing that market competition as well as public
financing
will set the actual pace.
By focusing the QE debate on risk-sharing, Draghi managed to distract Germany from an infinitely more important issue: the enormous size of the QE program, which completely defied the German taboo against monetary
financing
of government debts.
Main Street entrepreneurs do, however, have two major – and underused –
financing
options.
Others – such as Bridges Ventures and Pacific Community Ventures – are using Community Development Financial Institutions and insurance-company balance sheets to expand the
financing
pool available to start-ups in disadvantaged communities.
Back
Next
Related words
Countries
Which
Would
Their
Investment
Development
Public
Private
Banks
Government
Should
Governments
Infrastructure
Could
Global
Financial
Capital
Projects
Billion
Other