Publication

This paper discusses how governments, donors and public sector agencies attempt to create incentives for private sector actors to invest capital in tackling international development challenges. The authors first argue that the existing financial instruments used to create such incentives are problematic as they shift risk from private firms to taxpayers. They then outline what they believe is a better approach to providing incentives for private sector actors, which involves enhancing the returns the private sector would receive by linking payments to specific, measurable and agreed-upon goals.