The Capital Continuum: A framework for understanding how to use capital to generate impact

Over the past few decades, a significant portion of development financing in Latin America has depended on international cooperation and traditional philanthropy. However, the global financing architecture is changing rapidly. Official Development Assistance (ODA), one of the main sources of development funding, is facing a sustained decline: the OECD projects a decline of between 9% and 17% by 2025, following a 9% decrease recorded in 2024. At the same time, climate change, geopolitical tensions, fiscal constraints, and growing competition for resources are transforming the way social and environmental solutions are financed.

In this new context, development challenges can no longer rely exclusively on subsidies, donations, or international cooperation. Solving complex problems requires mobilizing a much broader combination of resources: philanthropy, private investment, catalytic capital, public mechanisms, and innovative financial instruments that make it possible to distribute risks, attract new actors, and scale up solutions.