- Blended finance in fragile contexts: Opportunities and risks
This paper analyses the OECD-DAC statistics on amounts mobilised from the private sector by official development finance interventions, from 2012 to 2017, against the multidimensional lens presented in the OECD 2018 States of Fragility Framework. The data shows a positive relationship between blending opportunities and economic, political and environmental security. The amounts of private finance mobilised increase, as a country’s economic, political and environmental fragility decreases. The way blended finance interplays with societal fragility and security remains unclear, as these two dimensions exert more complex influence on the trade-off between perceived risks and anticipated returns, which typically guides private investors.