Think tank calls for new Australian development finance institution

On September 19, 2022, the Sydney-based Lowy Institute put forward the case for an Australian development finance institution (DFI) in response to the Australian government's announcement of a Development Finance Review.

The Lowy Institute outlined five reasons for the establishment of an Australian DFI, namely that a DFI would:

  • Allow Australia to increase overseas development finance by mobilizing resources from the private sector;
  • Provide guarantees and loans at a greater scale than Australia’s normal ODA grant financing;
  • Improve development effectiveness in assisting emerging economies, particularly where projects could expect financial returns;
  • Increase domestic support for ODA spending, partly because it might return a financial profit; and
  • Signal Australia's intent to become a more substantial partner while extending its regional influence.

Report – The Lowy Institute