German Institute for Development Evaluation
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29.01.2019 - How can the private sector help achieve the development goals?

It will take considerably greater financial resources to achieve the 17 Sustainable Development Goals (SDGs) than are currently available through public funding. Public donors are increasingly attempting to mobilise private resources to close this funding gap. Magdalena Orth from DEval presented initial recommendations on evaluating these kinds of partnerships with the private sector at the Organisation for Economic Co-operation and Development (OECD) in Paris.

The combination of public and private funds for development cooperation, also referred to as ‘blended finance’, is creating new challenges for evaluation. The involvement of the private sector is leading to an increase in the number of stakeholders involved and hence the range of different approaches to monitoring and evaluation. As Magdalena Orth explained, ‘We need to understand how and when blended finance works in order to harness it to achieve the SDGs. To do so, we need to increase the quality and comparability of blended finance evaluations. Evaluations to date have used a variety of different definitions of blended finance, for example. That makes it more difficult to compare these evaluations and thus learn from them.’

The content of the OECD Working Paper was discussed by representatives of state institutions, funds and development banks at the Private Finance for Sustainable Development Week in Paris. Magdalena Orth and Gunnar Gotz from DEval wrote the paper in collaboration with other international evaluation experts from OECD, the Danish Institute for International Studies (DIIS) and the Policy and Operations Evaluation Department of the Ministry of Foreign Affairs of the Netherlands (IOB). It contains recommendations to the international evaluation community on developing joint definitions and standards for blended finance evaluations.

The OECD Working Paper on Blended Finance Evaluation is published on the OECD website.

Magdalena Orth bei der Präsentation in Paris
Magdalena Orth and Irene Basile (OECD) at the presentation


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