Private sector lending by international financial institutions (IFIs) is soaring. Guillermo Perry finds it’s a mixed bag and suggests improvements, including more support to small and medium firms and avoidance of procyclical lending.
Guillermo Perry assesses whether arguments in favor of such MDB direct support are valid and whether MDBs are living up to priorities coherent with such arguments and finds that they do so only partially.
In this timely new book, CGD non-resident fellow Guillermo Perry proposes an innovative risk-management toolkit for multilateral banks to help developing countries become more stable, prosperous, and resilient to external shocks. The book is an important reminder of why the multilaterals must move beyond lending, despite a temporary uptick in demand for traditional loans.