It is time to move beyond the hollow ‘billions to trillions’ mindset and ensure that the billions we do have are spent wisely. This requires boosting LMICs’ public revenues by facilitating sovereign-debt reductions, enhancing co-operation to ensure that multinational companies and the super-rich are properly taxed, and advancing new allocations of special drawing rights (the IMF’s reserve asset). Together, these measures are far more likely to generate the trillions of dollars needed to close development- and climate-financing gaps in the developing world.
Jayati Ghosh recently penned an article for Project Syndicate “The ‘billions to trillions’ charade” critiquing the illusion that mobilizing private investment will be enough to help developing countries address climate and development needs:
