Infobrief: Private capital to create social impact - Is impact investment the future of development cooperation?

Development cooperation is changing before our eyes. The United States and European countries are cutting aid budgets in favour of national self-interest and military spending. Funding was already far from the levels needed to achieve the Sustainable Development Goals by 2030; now, the outlook is even bleaker.

One clear trend remains: the push for more private investment. Can private investors who seek to combine financial returns with a positive social and environmental impact play a meaningful role in addressing the world’s myriad development challenges?

Download This briefing note (PDF, 1.4 MB) examines the growing trend of impact investment and considers its implications for international development. It aims to clarify underlying concepts and examine empirical evidence on what impact investing can and cannot achieve.