Municipal Finance Task Force Proposal to Cities Alliance

In order for cities to be able to scale up their slum upgrading programs or implement their city development strategies, a significant amount of long term capital investment will need to be mobilized. It is clear that the multilateral development banks and other donor organizations will never have enough resources to directly address the long term capital requirements of all developing cities for slum upgrading. If the international development banks, donors, and national governments have insufficient funds, then the only alternative is to seek private capital. In particular, the mobilization of local long term private capital will be essential (because international long term capital is very constrained by foreign exchange risk).