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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

The (Sometime) Tyranny of (Somewhat) Arbitrary Income Lines

As Lant Pritchett reports, the World Bank has introduced two new poverty lines: $3.20 for lower middle income countries, and $5.50 for upper middle income countries. I’m with Lant that this is broadly a good thing. But the process by which the World Bank came up with its new poverty lines suggests it might be worth revisiting some of the pitfalls of income thresholds at the individual or national level. 

Please, Can You Help Me Understand IDA's New Private Sector Window?

The World Bank’s soft lending arm for poorer countries, IDA, is busy rolling out a new $2.5 billion Private Sector Window. (See last year’s outline proposal for reference.) Bigger private sectors in IDA countries would be hugely welcome, so there is much to like in the broad thrust of the proposal, as suggested by Nancy Lee. But I’m left a little baffled by the details, and would love some reactions as to what I’m missing.