Finance for Development Lab

🆕 🌍 Read our new opinion piece on Devex: "The World Must Reshape Global Finance at the 2025 UN Summit in Seville this June." The 4th International Conference on Financing for Development (#FfD4) is a crucial opportunity to elevate African voices, prioritise transformative investments, and tackle structural inequities. Don't miss out on this important discussion featuring insights from:  - Mma Amara Ekeruche, Centre for the Study of the Economies of Africa (CSEA)  - Rob Floyd, African Center for Economic Transformation (ACET)  - Martin Kessler, Finance for Development Lab  - Beverly Musili, Oxfam #FinanceForDevelopment #UN2025 #GlobalFinance #AfricanVoices Link to article 👇 https://lnkd.in/g2Ccf3gT

📢 🔔 WEBINAR: Be part of our discussion TODAY on global debt relief initiatives and strategies for meeting the financing needs of developing nations. Find more information and the registration link below 👇. #FfD4 #G20 #DevelopmentFinance International Institute for Sustainable Development

📆 WEBINAR December 10th |  Paving the Way for Debt Relief: Strategic Collaboration Between the G20 Presidency and the #FfD4 On December 10, 2024, join us for a virtual roundtable exploring global debt relief initiatives and strategies to address the financing needs of developing countries through the #G20 South African Presidency & the Fourth International Conference on Financing for Development  #FfD4 🌍 🔗 Register here ➡️ https://lnkd.in/eyxX38rq   Discussion moderated by Anahí Wiedenbrüg with speakers: 🔹daniel bradlow, Professor of International Development Law and African Economic Relations, University of Pretoria  🔹Martin Kessler, Executive Director, Finance for Development Lab  🔹Marina Zucker-Marques, Senior Academic Researcher, Global Economic Governance Initiative, Boston University  🔹Rodolfo Reta Mexican Representative to the FfD4 Negotiations on Behalf of His Regional Grouping 📢 Event open to everyone, with interpretation in French & Spanish #DebtRelief #G20 #FfD4 #SustainableDevelopment #GlobalFinance

🌍 💸 Dette et Climat : dans cet entretien avec Grégoire Normand, publié aujourd'hui dans La Tribune, Simon Cueva examine le cercle vicieux de l'endettement qui entrave la capacité des Etats à financer la transition écologique. Il y aborde aussi les résultats du récent Rapport Intermédiaire de l'Examen d'Experts sur la Dette, la Nature et le Climat co-financé par les gouvernements de la Colombie, du Kenya, de la France et de l'Allemagne. 📚 Lien vers le Rapport: 🔗https://lnkd.in/dTY77BWe 📰 Lien vers l'Article: 👉 https://lnkd.in/g5khQHZz Le Rapport d'experts a été établi pour catalyser une réponse à la triple crise. Ce Rapport intérimaire fournit un diagnostic de l'ampleur des problèmes dans l'espoir d'établir une plus grande collaboration internationale et formuler des solutions. Le Rapport final sera publié au printemps 2025 et fournira une série de recommandations pour rendre la dette plus durable, tant sur le plan fiscal qu'environnemental. ↗️ Suivez-nous pour en savoir plus #Climat #Dette #Nature #Developpement #COP29

📢 NEW Report! 📚 The interim report from the Expert Review on Debt, Nature, and Climate has just been released, drawing attention to the alarming ‘triple crisis’ of 📈soaring debt, 🌱declining nature, and 🔥increasing climate impacts. Commissioned by Colombia, Kenya, France, and Germany, this report highlights how vulnerable low- and middle-income countries are caught in a vicious circle of rising debt and intense climate shocks, hindering investments in climate resilience and sustainable development. 🌟 Ultimately, this 'vicious circle' means there is no addressing the climate crisis without addressing the debt crisis 📊 Key Findings include: ➡️ Nations are forced to borrow more for disaster recovery, worsening their debt situation.  ➡️ The current Debt Sustainability Frameworks of the World Bank and IMF fail to address the interconnectedness of debt, climate, and nature loss.  ➡️ Urgent reforms are needed to create a more sustainable fiscal environment. The report emphasizes that a ‘virtuous circle’ of inclusive and environmentally sustainable growth is achievable, but it requires strong domestic policies and international financial support. Vera Songwe and Moritz Kraemer, co-chairs of the Expert Review, urge the global community to unite in addressing these pressing challenges. 📚 Read the full interim report here ⬇️ 🔗 https://lnkd.in/dnCiCP_w #ClimateCrisis #DebtSustainability #SustainableDevelopment #WBGMeetings

📢 NEW PAPER ! 📚💡 📈 🇵🇰 Pakistan’s economic challenges are deepening. Aasim Husain's latest paper dives into persistent macroeconomic imbalances, unsustainable deficits, and the pressing need for reform, proposing a fresh strategy to tackle the country’s critical debt situation. 🚀 Rather than endorsing default and restructuring, which carry well-known complexities and economic disruptions, this paper proposes a path focused on sustainable growth, structural reforms, and strategic fiscal adjustments. 🔎 To achieve this, it emphasizes the necessity for substantial and coordinated liquidity support from official creditors at concessionary interest rates, along with enhanced transparency. 👉 🔗 Dive into the analysis and read the full paper here: https://lnkd.in/dFkeFD-S #PakistanEconomy #DebtCrisis #Macroeconomics #FiscalPolicy #SustainableGrowth #IMF #EconomicResearch    

📢 NEW PAPER! 📚💡 We are thrilled to share the release of our latest paper by Clemens Graf von Luckner on the Debt Sustainability Framework for Low-Income Countries (LIC-DSF) and its underlying mechanisms. 📊 The LIC-DSF plays a vital role in evaluating debt risks. With increased debt challenges following the COVID-19 pandemic, its significance has grown. How can we ensure it effectively addresses the needs of vulnerable economies? 🌟 This paper identifies major shortcomings in the current framework and suggests innovative solutions. 🔍 It explores 3️⃣ key proposals to enhance the LIC-DSF: ✅ an automatic model for crisis detection, ✅ tailored assessments of individual country risks, and ✅ balanced risk weights. 🎯 These aim to provide LICs with a clearer, more transparent, and accurate framework while upholding fiscal responsibility. 🌍 With the 2026 review approaching, it is essential for policymakers and advocates to engage with this crucial research to ensure the LIC-DSF effectively balances development goals with responsible debt management. 💡 This paper is the first in a series about Debt Sustainability Frameworks and their potential to better serve the needs of developing countries. We would like to thank The Rockefeller Foundation for their support. 👉 🔗 Read the full paper here: https://lnkd.in/dDcH4SnM #AnnualMeetings #IMF #WorldBank #LICDSF #DebtSustainability #DSF

📢 🌟Our #Newsletter is out 🌟 Meet our new team members and get a glimpse of our latest updates & publications. 👉 https://lnkd.in/gg9GvmsY

🌟 Exciting News ! 🌟 FDL is thrilled to announce that Sima Kammourieh Petrov has joined our team as the 🌏 Executive Director for Climate. Jointly with Martin Kessler, and under Ishac Diwan's intellectual leadership, Sima will help us advance FDL’s mission to improve the fairness of the international financial system and architecture. 🌐 Drawing on her extensive expertise in public policy and private finance, as well as her experiences at E3G, French Ministries, and BNP Paribas, she will play a pivotal role in crafting an ambitious research program on transition finance. This will not only expand on existing initiatives like the ☘️ Expert Review on Debt, Climate, and Nature, but also pave the way for new endeavours, with a specific focus on the role of financial regulation in accelerating the transition in developing countries.   🚀 With Sima on board, we are excited to progress and expand, and look forward to seeing what the future holds!    🙏 A big thank you to all our supporters, funders, partners, and brilliant team for trusting us over the last three years and making this possible. We have exciting times ahead! #FinanceForDevelopment #ClimateFinance #EconomicResearch #DevelopmentFinance #InternationalDevelopment #SovereignDebt Bill & Melinda Gates Foundation, Adil Ababou, The Rockefeller Foundation, Open Society Foundations, Direction générale du Trésor, Paris School of Economics, CEPREMAP, OECD - OCDE, African Center for Economic Transformation (ACET), Economic Research Forum, South African Institute of International Affairs (SAIIA), CONICET, Centre for the Study of the Economies of Africa (CSEA), Consortium for Development Policy Research, United Nations Economic Commission for Africa, ECLAC, Research and Information System for Developing Countries (RIS), Development Reimagined, Hamouda Chekir, Vera Songwe, Philippe Le Houérou, Hafez Ghanem, Simon Cueva, Francois Bourguignon, Maï-Linh Florentin, Brendan Harnoys-Vannier, Clemens Graf von Luckner, Yoan Raïh, Antoine Gaudin, Emanuele Properzi, Simon Azuélos, Simon Desmet

🚨 New Policy Note Alert: "The Pitfalls of Value Recovery Instruments (VRIs) in Sovereign Debt Restructuring" 🚨 In a new paper published by the Finance for Development Lab (with thanks to Ishac Diwan and Martin Kessler), I explore the potential and limitations of VRIs in debt restructuring. While VRIs hold promise, several key challenges are hindering their effectiveness: 🔑 Asymmetry: VRIs reward creditors in good times but fail to protect debtors in bad times, creating imbalances that can lead to costly outcomes for countries. 💡 Valuation and Liquidity Issues: Design flaws like complex valuation and lack of liquidity limit VRIs' potential to provide meaningful relief. 🏆 Key Takeaway: For VRIs to work effectively in the future, they must include better debtor protections and deeper haircuts for creditors. It's about sharing both risks and rewards fairly. Just like the Wright brothers we should not give up on the idea, but like them (who wisely chose Kitty Hawk over the Grand Canyon for their flight tests) we should approach VRIs with a careful and thoughtful strategy. Read the full policy note here 👉 https://lnkd.in/e9brdwnb #DebtRelief #EconPolicy #SovereignDebt #VRIs #PolicyAnalysis #FinDevLab Geneva Graduate Institute CFD - Centre for Finance and Development