ORIENTATING FINANCE FOR OUR COMMON FUTURE

This briefing from the Institute for Economic Justice (IEJ) outlines the organization's efforts to advocate for reformed development finance to support a green and just transition, particularly in the Global South and South Africa. The IEJ emphasizes the need for state-led development strategies, democratic oversight of international loans, and human-rights-based approaches to sovereign debt restructuring.

• Developing countries face significant barriers to development financing, including geopolitical tensions, debt distress, high capital costs, and the climate crisis, all occurring alongside strained government finances used to support populations with limited revenue.
• The IEJ advocates for nationally-owned development strategies where the state takes a leading role, utilizing central bank and development finance institution (DFI) lending to strategic sectors to encourage private sector capital release.
• Regarding South Africa, the IEJ's investigation into International Financial Institutions' (IFIs) Covid-19 lending found a lack of transparency and accountability in the borrowing process, which could threaten national sovereignty and human rights. This led to a parliamentary recommendation to establish a law within three years requiring parliamentary scrutiny and approval for all sovereign loan agreements.
• In analyzing South Africa's Just Energy Transition Partnership (JET-P), the IEJ argues that public-private partnerships (PPPs) must utilize fair risk-sharing arrangements that do not prioritize private profits over public goods for disadvantaged people.
• To address debt distress in the Global South, the IEJ proposes that loans be provided on concessional terms—including long grace periods, significant local currency shares, and below-market-rate interest—and calls for a human-rights-based approach to debt restructuring.

APA

Institute for Economic Justice (2025). ORIENTATING FINANCE FOR OUR COMMON FUTURE. https://iej.org.za/wp-content/uploads/2025/02/Orientating-Finance-for-Our-Common-Future-February-2025-1.pdf

Chicago

Institute for Economic Justice. ORIENTATING FINANCE FOR OUR COMMON FUTURE. 2025. https://iej.org.za/wp-content/uploads/2025/02/Orientating-Finance-for-Our-Common-Future-February-2025-1.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=ORIENTATING FINANCE FOR OUR COMMON FUTURE |date=February 2025 |url=https://iej.org.za/wp-content/uploads/2025/02/Orientating-Finance-for-Our-Common-Future-February-2025-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2025orientating, author = {{Institute for Economic Justice}}, title = {{ORIENTATING FINANCE FOR OUR COMMON FUTURE}}, institution = {Institute for Economic Justice}, year = {2025}, month = feb, url = {https://iej.org.za/wp-content/uploads/2025/02/Orientating-Finance-for-Our-Common-Future-February-2025-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }