On September 26, the Economic Development Club hosted Clint Bartlett, MAM ‘17—a consultant to the United Nations Development Programme (UNDP) and expert in impact investing—for an engaging session on the critical role that blended finance will play in addressing global inequalities. Clint has dedicated his career to finding innovative financial solutions for underfunded regions, particularly in the Global South. His insights provided the group with a deeper understanding of the mechanisms by which finance can drive impact.

At the core of Clint’s talk was the challenge of scaling impact investment in regions that need it most. He explained that while blended finance—where philanthropic and traditional capital are combined—can unlock much-needed funds, market dynamics are still hindering progress. One key issue is the accurate pricing of resilience, with traditional investors often overestimating the risks of financing projects in low-income areas. This mispricing, he convincingly argued, prevents capital from flowing where it is needed most.

Blended finance is crucial for lowering the cost of capital for projects in the Global South. By reducing the barriers to investment, these structures help ensure that more projects focused on the problems facing local communities can get off the ground. However, Clint cautioned that blended finance is a temporary fix. “These assets aren’t going to fundamentally change,” he said, emphasizing that small and medium-sized businesses (SMEs) in agriculture or other relatively low-risk sectors should not be expected to deliver the high returns that traditional investors demand.

During the session, Clint also reflected on his experiences in his native South Africa, noting the stark inequalities that persist in the country. His observations resonated with the group, sparking a thoughtful discussion on the broader implications of financing decisions for marginalized communities around the world. Students asked about the role of governments, pension funds, and financial institutions in addressing the financing gap.

One of the major takeaways from Clint’s talk was the urgent need to rethink how the financial system values low-risk, high-impact projects. As long as these projects are benchmarked against market rates, they will struggle to attract the capital needed to scale. The session came to the conclusion that the solution lies in creating a system that values social outcomes as much as financial returns, with significant work still required to make the system more equitable and sustainable.