Private finance for sustainable development

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Sarker, T
Cadman, T
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Cadman, Timothy

Sarker, Tapan

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2022
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Abstract

Private financing is an important aspect of sustainable finance for economic development and financial inclusion. Various forms of private sector financing need to be mobilised to achieve environmentally or socially sustainable outcomes as well as the United Nations' Sustainable Development Goals (SDGs). Strategically leveraging public finance through systemic change and stimulating private investment are both necessary to achieve a paradigm shift in the global economy (Clark, Reed, and Sunderland 2018). In the absence of the private sector progress will remain insufficient. A wide variety of impediments to incentivising private sector engagement persists. For private finance to make a positive contribution, fundamental systemic modifications and policy reforms are required to ensure that sustainable socioeconomic development happens within planetary boundaries (Steffen et al. 2015). This chapter consequently explores the unlocking of private sector finance to fulfil sustainability goals. However, not all is well in the private realm. Green bonds, while an innovative vehicle for investment, are problematic and wealth generation continues to be propped up by extreme poverty at the base of the economic pyramid. While new technologies, such as blockchain, offer a way forward for those at the base, progress will be limited unless and until the activities of all sectors are recognised and valued to the same extent as business as society emerges from the COVID-19 pandemic.

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De Gruyter Handbook of Sustainable Development and Finance

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© 2022 Walter de Gruyter GmbH. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the publisher’s website for further information.

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Development studies

Banking, finance and investment

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Sarker, T; Cadman, T, Private finance for sustainable development, De Gruyter Handbook of Sustainable Development and Finance, 2022, pp. 251-263

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