Policy makers face a multitude of obstacles and challenges in financing sustainable development. The financing needs, financing landscape and risk assessments identify financing policy challenges, opportunities and risks. They flag areas where underlying market, policy or capacity constraints may be inhibiting effective mobilisation and use of financing.
The binding constraints diagnostic deepens the analysis of impediments and their root causes, drawing on the experience and knowledge of local institutions and actors and relevant tools, and in so doing helps shape the focus of the financing strategy and prioritisation in particular.
Developed by the IATF, this module suggests a structured dialogue with local experts and practitioners, along with the use of relevant analytical tools. It guides identification of financing policy priorities that are sensitive to local contexts and preconditions, consider trade-offs and underlying problem drivers, and would have the greatest impact on the ability to finance sustainable development outcomes. It thus supports more efficient and effective prioritisation and sequencing of policy action and reforms across the action areas of the Addis Ababa Action Agenda.
