The European financial architecture for development in a changing world

Global discussions on climate change, debt crises and food insecurity underscore the need for a more robust European financial architecture for development (EFAD), which seeks to enhance the coordination and effectiveness of European developmental investments outside the EU. San Bilal and Karim Karaki offer an overview of the EFAD’s purpose and objectives in a rapidly evolving global context.

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    Summary


    The European financial architecture for development (EFAD) aims to improve the coordination, coherence, inclusiveness, visibility and efficiency of European investments outside of the EU, strengthening their policy direction and increasing their impact, particularly in the world’s most vulnerable regions. The need for a stronger EFAD has grown more urgent, as global discussions on issues like climate change, debt crises and food insecurity increasingly highlight the financing gap as a key challenge. 

    In this paper, we provide a brief overview of Europe’s financial architecture for development, outlining its purpose and objectives in a rapidly evolving context that has introduced new challenges and complexities. We analyse the current state of the EFAD, examining ongoing initiatives and the extent to which it is delivering on its objectives, particularly in terms of inclusiveness, resilience and sustainability. This includes a focus on challenging environments  such as fragile countries and least-developed countries. We conclude by outlining key issues and recommendations to ensure that the EFAD is fit for purpose and delivers impactful and transformative investments in partner countries.

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