Following the lead of other G8 countries, in recent years Canada has shifted to promote blended finance initiatives as part of its international development policy. New initiatives such as FinDev Canada and the International Assistance Innovation Program (IAIP) use public money to attract and subsidize private investment in projects that claim to promote sustainable development. But not much is known about how this turn to blended finance has affected Canadian organizations that work on development cooperation and solidarity.
The report published by the Blended Finance Project, ‘Mapping Blended Finance: What is the experience of the development cooperation and solidarity organizations?’ finds that opinion is divided. Some organizations welcome blended finance initiatives, others are unsure, while some are highly skeptical. The report makes recommendations for financing development cooperation at a time when the IAIP pilot program is up for renewal, including alternatives to blended finance that enable the success and promote the sustainability of small and medium-sized organizations that are key to Canada’s engagement in the world.
The research for the report was financed by the Faculty of Social Sciences at the University of Ottawa.
The report is also available in French.