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About Innovative Finance

What is innovative finance?

"The ILO understands innovative finance as a set of financial solutions and mechanisms that create scalable and effective ways of channelling both private money from the global financial markets and public resources towards solving pressing global problems. This concept incorporates two distinct facets: first, innovative financing is a complementary source of capital to development aid; and second, innovative financing is a way of making development more effective and efficient by linking financing to results, redistributing risk, improving the availability of working capital, and leveraging technology. Innovative finance is not a homogenous mass of initiatives, mechanisms or solutions, but it can be categorized on the basis of key technical attributes and goals."