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As US aid falters, development finance trends to watch in 2025

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From private capital mobilization, to MDBs, a key question in a year that features a pivotal Fourth International Conference on Financing for Development will be how to do more with less.
The article from Devex discusses several key trends in development finance as U.S. aid faces challenges in 2025. It highlights the increasing role of private sector investment in development, with a focus on blended finance mechanisms that combine public and private funds to mitigate risk and attract investment in developing countries. There's a noted shift towards more strategic and catalytic use of aid, aiming to leverage larger sums of private capital. Additionally, the article points out the growing importance of multilateral development banks (MDBs) and their efforts to reform to better address global challenges like climate change and pandemics. It also mentions the rise of non-traditional donors like China, which are reshaping the aid landscape with different models of development finance. Lastly, there is an emphasis on the need for more transparency, accountability, and effectiveness in aid distribution, as well as the integration of technology and innovation in development projects to enhance impact and efficiency.

Read the Full Devex Article at:
[ https://www.devex.com/news/as-us-aid-falters-development-finance-trends-to-watch-in-2025-109355 ]