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Views from the Center

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A Review of the Mid-Term Review of the IDA Private Sector Window

A few weeks ago, the World Bank’s soft-lending arm IDA held the mid-term review of its 18th round of funding. As background for the meeting, the World Bank produced a status update of the new IDA Private Sector Window (PSW) that I have blogged about before. The update provides valuable insight into how the $2.5 billion of PSW funding is being used at the halfway mark of its spending cycle but leaves some big unknowns.

It’s Time for a Code of Conduct on Transparency for Financiers Backing PPPs

Public-Private Partnership models continue to proliferate, backed by multilateral development banks old and new. But the volume of PPPs in developing countries has stagnated since the global financial crisis, and they won’t deliver unless they are designed and implemented well. Making more and better public-private investments will take a far greater commitment to transparency from participants in the deals. Financiers—MDBs in particular—should take the lead.

Can the Private Sector Deliver on the Infrastructure SDGs?

In two weeks, a teaming mass of world leaders are going to descend on New York to sign up to the Sustainable Development Goals. Among the targets to be met by 2030 are global universal access to water, sanitation, reliable modern energy, and communications technologies. Back-of-the-envelope calculations suggest that meeting these infrastructure targets would involve a trillion or more dollars in additional infrastructure investment in developing countries every year. That begs the question: where is the money going to come from?

How Much Scope for Private and Market Rate Infrastructure Finance at Addis?

Meeting the SDG targets for infrastructure in developing countries is going to cost around USD 1 trillion a year. With official development assistance at around $150 billion, other official flows at $27 billion, and investment in infrastructure with private involvement at about $181 billion, it is clear that the majority of infrastructure finance will have to come from domestic resource mobilization in developing countries (which comes to about $9.2 trillion per year).