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Blended Finance - the way to better development

Danish contribution to the
OECD/DAC work on definitions, approaches and tools for blending public
development assistance with private investments

During the last two years, a Working Group with participation from Norway, Germany and Denmark, and under the leadership of OECD/DAC EvalNet, has produced knowledge and evidence to develop a common understanding within the global evaluation community and among operational parties of how to evaluate blended finance operations. 

The Working Group has now finalized its work and the major outcomes are to be found at the web site Evaluating Blended Finance and Private Sector support - OECD.

The web site has references to the three technical papers produced by the Working Group:

1.Core concepts in blended finance: Assessment of uses and implications for evaluation

2.Evaluating financial and development additionality in blended finance operations

3.Evaluating blended finance instruments and mechanisms

Denmark has a special stake in paper #2 on additionality, produced by researchers from DIIS and University of Copenhagen.

The Working Group has not just been about the various technical papers produced but as much trying to create dialogue and critical reflections on evaluations of blended finance operation with the view to improve implementation. The value proposition of doing better evaluations of blended finance operations is high for all involved, ensuring accountability for desired development outcomes (results) of blended finance operations as well as improving learning on how development financing can be as effective and impactful as possible in the parts of the developing World where we urgently need more financial investments. 

Doing better evaluations is key to understanding the context for blended finance investments and hereby inform an enabling environment for blended finance investments that create the “fair deal” between investors doing business while at the same time supporting the goals and values of public development assistance.