Ideas to Action:

Independent research for global prosperity

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.

 

Cranes in Vietnam

Trillions for the SDGs? Time for a Rethink

In 2015, the world enthusiastically signed on to the challenge of transforming billions to trillions of dollars of private finance for the Sustainable Development Goals (SDGs). The idea was to use public and private development aid to unlock much more commercial private finance for sustainable growth and poverty reduction in developing countries.

The 'Declaration of Independence' by John Trumbull (1819)

Thomas Jefferson, the Original Debt Trap Diplomat

CGD research has become Exhibit A virtually every time the charge of “debt trap diplomacy” has been leveled against China in the media this past year. Yet, our research shows that many of China’s borrowers are managing their debts just fine and seem unlikely to fall into any traps.

Abstract graphic of different connections and nodes

Development Agencies: Fit for the Future?

Official bilateral and multilateral development agencies are under strain from opposing forces: on the one hand, they are confronted with a world in which the development challenges are interconnected and daunting, and the risks are systemic and increasing; on the other, they are grappling with a world in which ardent nationalism, protectionism, and populism are rising, and rules-based multilateralism is declining.

question-mark

Answering the World Bank’s $75 Billion Question

Next week in Zambia, donors to the World Bank’s financing window for low-income countries, the International Development Association (IDA), meet to discuss IDA’s future. This “mid-term review” is both a stocktaking session and a teeing up of the next round of fundraising for the world’s largest concessional lending fund. Formal negotiations will commence next year, but the meetings in Zambia set the scene for those negotiations.

The International Finance Facility for Education: The Wrong Answer to the Right Question?

Donors are considering a proposal for a new “innovative finance mechanism” to increase funding for education, based on recommendations from Gordon Brown’s Education Commission. We agree that we need to finance an expansion of education in the developing world. But sadly, the International Finance Facility for Education (IFFEd) proposal is too good to be true. Using donor guarantees to increase lending by multilateral banks could increase the supply of loans—but there are simpler ways to do that without setting up a new facility.

UK aid supplies on pallets

How Should UK Development Finance Count as Aid?

The UK Secretary of State for International Development Penny Mordaunt spoke powerfully last week about the opportunities for expanding investment in developing countries, including through CDC, the UK’s development finance institution. But a new proposal to count the reinvestment of returns on development finance towards the aid target would contradict the principle underpinning the rules on measuring aid, reduce the UK’s aid effort, and create volatility for other aid (and HM Treasury).

Two stacked bar graphs, one with the total assets of the IDFC members (totaling 3.7 billion) and the other with the MDBs (totalling 1.5 billion).

Rising to the SDG Challenge: The Unique Contribution of the International Development Finance Club

The IDFC represents a unique mix of bilateral agencies, national development banks, and regional development banks. As such, it holds promise for bringing new and productive collaborations to the SDG agenda that extend well beyond the work of the major multilateral development institutions. In a new brief, our efforts to map the scale and scope of IDFC members’ development financing through a membership survey and public databases provide some interesting takeaways:

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