Report

Financing for Development in a Fragmented World

A pragmatic, data-driven approach to implementation

Ahead of the 4th International Conference on Financing for Development, this report presents a pragmatic, data-driven framework to future-proof development finance amid growing global fragmentation, economic shocks, and rising uncertainty, with actionable recommendations for both national and international policy.

By Fernando Morra, Alexandra Readhead on June 20, 2025

Since the last Financing for Development conference in Addis Ababa in 2015, development finance has faced increasing complexity and systemic risks, including reductions in aid, trade fragmentation, and rising debt vulnerabilities. This report presents a framework to identify the most critical sources of finance for low-income countries and evaluates how geopolitical shifts and systemic risks affect their stability. By analyzing the scale and exposure of financial flows, it highlights priority policy actions for countries to safeguard development progress amid a volatile global environment at the 4th International Conference on Financing for Development

In a context characterized by a “lowest common denominator” approach to international cooperation, focused coordination is both necessary and pragmatic. Efforts to strengthen domestic resource mobilization must be supported by enhanced international cooperation on debt relief, fair trade, and development assistance transparency. This targeted strategy aims to future-proof development finance by addressing geopolitical risks and guiding policy priorities toward a more resilient global financing agenda.

Join our Side-Event at FfD4

Are you in Seville for the conference? Join our side-event Navigating Uncertainty: Implementing the 4th Financing for Development Agenda in a Fragmented World

Event details

Date: July 2, 2025
Time: 8:30 AM CEST
Venue: FIBES Sevilla Exhibition and Conference Centre, side event room 22

Report details

Topic
Sustainable Finance
Sustainable Development Goals
Taxation
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2025