As more public finance is channelled to the private sector in the name of development, we need to know: are these investments genuinely adding value, or are they just substituting what the market could do on its own? This is where additionality comes in: the idea that ODA should only be used when it delivers something that private capital cannot.
Our latest research explores how well donors and their bilateral DFIs are disclosing the additionality of their private sector instrument (PSI) investments using the new OECD-DAC reporting requirements.