Allocation of concessional resources for development and global public goods. Ten questions and principles for the G7, based on FERDI’s works

CategoryPolicy briefs
Published on28 April 2026
PublishersFERDI

The allocation of concessional resources, presently reduced, is a crucial issue. How to protect flows to the poorest and most vulnerable countries.
Allocation criteria among countries are even more important than the eligibiliy thresholds.
Final allocation depends on the balance between bilateral and multilateral.
It also depends on the treatment of vertical funds, excessively fragmented.
Different allocation criteria are required according to goals: development, climate, GPGs.
Allocation also depends on how concessional resources are mobilized.
Balance between needs and effectiveness allocation criteria depends on the goals.
Structural vulnerability is a criterion to be considered if consistent with the goals.
For MDBs, it is relevant and possible to incorporate vulnerability into the PBA.
To be accountable the current system is to be assessed with regard to allocation criteria.

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Citation

FERDI (2026) "Allocation of concessional resources for development and global public goods. Ten questions and principles for the G7, based on FERDI’s works", FERDI Policy Brief B293

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