Ideas to Action:

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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.

 

How Can We Make Illicit Finance Less Illicit?

The truth is: we don’t know much about illicit finance. We don’t have exact figures on the volume of transactions which could fall within this category, and we also don’t know whether these transactions have any significant impact in developing countries and elsewhere. Adding up estimates of different types of illicit flows provides lurid headline figures (one trillion dollars a year) but more specific analysis is needed to determine whether, and how much, better policies might improve development.

Let’s Not Help the Philippines Like We Helped Haiti

The immediate aftermath of a natural disaster, such as that the typhoon which devastated part of the Phillipines on Friday, can bring out the best of the global community. There will come a time to discuss how we can do more to prevent the environmental changes which make such events more likely; but the immediate priority is to get water, food and shelter to people who urgently need it. 

What WOULD It Take for the US and Europe to Give Up Control of World Bank and IMF Leadership?

This is a joint post with David Roodman.

The Dominique Strauss-Kahn debacle has unexpectedly forced the first leadership turnover at a Bretton Woods institution since the global financial crisis—the first leadership transition in what we might call the G-20 world. The tacit deal that has long put an American atop the World Bank and a European in charge of the IMF, rooted in the geopolitics of the 1940s, looks more archaic than ever. That’s why this time around, the calls have grown even louder to make the leadership selection process of the World Bank and IMF open, transparent, and meritocratic. Owen Barder suggests on his widely read blog that transparency and merit are key to maintain the reputation and relevancy of these international institutions, and Nancy Birdsall agrees that the decision needs to be based on merit, not nationality. The Financial Times and others news media say that it is time for everyone to acknowledge that we are in the 21st century with several emerging powers that must have a larger role in the Bank, the Fund and other multilateral organizations. One of us (Vij) has made this argument too, constructing a model of global governance that factors in GDP and population as of 2011, not 1941.