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.

 

Getting to Yes on a World Bank Recapitalization

World Bank President Jim Kim is hoping the bank’s 189 shareholders will agree to increase the current capital of the bank’s “hard” window sometime in 2018. But the US wants to link any support for a recapitalization to World Bank “graduating” China—and perhaps other member countries with good access to private capital markets who don’t seem to “need” the World Bank. There are sensible arguments on both sides of this divide.

The IMF on Protecting the Poor during Fiscal “Consolidations”: Better Late Than Never

Inequality and inclusive growth were high on the agenda of the Annual Meetings of the International Monetary Fund and World Bank earlier this month. We are glad about that, but the under-reported story here is that this prominence marks a dramatic shift in the IMF over the last two decades in the IMF’s approach to the relevant challenges for the poorest countries, including on the issue of social safety nets and social expenditures.

Five Innovations at the AIIB

We visited the AIIB a few weeks ago, and heard more about the emerging AIIB model: What is likely to be the same—as at the five big legacy banks (the World Bank and the four regional development banks) and what is likely to be different.

The Time Is Right for Expanding the Use of the IMF’s Precautionary Credit Lines

Many emerging economies could benefit from insurance against this backdrop of volatility. Fortunately, cheap and no-strings-attached liquidity insurance exists, in the form of the IMF’s Flexible Credit Line (FCL) for countries with very strong policy fundamentals; for countries with somewhat weaker, but still sound fundamentals, the Precautionary and Liquidity Line (PLL) offers a similarly good deal. But these precautionary instruments remain underutilized. We have some suggestions on how the IMF could fix this.

Two Smart Ideas to Achieve a ‘Learning Generation’

Is big money really necessary, or even sufficient, to improving learning outcomes for children in the developing world? CGD’s background research submitted to the Commission has convinced us that the key to faster progress is not incremental money; it is focused action in two critical areas. The first necessary, unavoidable step is for political leaders, education officials, and parents in low-income countries to recognize the depth of the problem (children’s lives and public money wasted) in their country, and have the information to design and implement local solutions. The second is to shift education funding to paying for results, rather than inputs and plans.

Finding Up-to-Date Median Income Data Just Got Much Easier (Thanks, PovcalNet!)

We have long advocated for more widespread use of median income or median consumption to compare individuals’ material well-being between countries and its development over time, and we are happy to report that the World Bank team that manages the (impressive) PovcalNet database has come through: as of October 1, the median monthly per capita income or consumption for each country is now part of the standard indicators displayed for any country query on PovcalNet.

Four Comments and a Suggestion for the World Bank Board

Last week the World Bank Board closed the three-week window, announced in late August, for member countries to nominate candidates for the presidency of the World Bank. Jim Kim, the US nominee and incumbent since his election in 2012, was formally nominated by the United States at 12:01 a.m. at the opening bell, so to speak. He is the sole candidate in what appears to have been a kind of insider coup by the United States (called a “charade” in a World Bank Staff Association letter to its members) of the procedures agreed by World Bank members in 2011.

Pages

Tags