The United Nations Development Programme (UNDP), which focuses on the world’s least developed countries, will be consulting with the international finance sector in the coming weeks on ESG, impact and SDG finance.
The UN is keen that private finance helps to achieve its 17 Sustainable Development Goals (SDGs), but with emerging markets suffering the largest ever recorded outflow of finance as a result of the current downturn, this agenda is under pressure.
Washington-based finance trade body the Institute of International Finance (IIF) has been tracking emerging market outflows since the COVID-19 crisis and oil price instability rocked financial markets. Such outflows are not unusual during times of economic stress, but Jonathan Fortun, a macroeconomist at the IIF, says that the current levels are unprecedented.
“Since 2008 you have seen a lot of liquidity in the markets because of QE, and this has been pushing out money from developed m…