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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.

 

2013 World Bank Group / Fund Annual Meetings. 2013 Development Committee. Photo By: Eugene Salazar / World Bank

What CGD Experts are Watching at This Year’s World Bank/IMF Meetings in Bali

Why should countries invest in human capital? As emerging technologies impact economies and societies, how can we ensure that the most vulnerable are protected? Who will step up to finance the SDGs? Next week’s Annual Meetings of the World Bank and the IMF will convene 13,000 global policymakers, private sector executives, academics, and civil society members in Bali, Indonesia as they work to address these questions and more.

Figure 1: Predicted probability of private investment

The Elusive Quest for Additionality

After toiling away for decades in relative obscurity, DFIs have found themselves thrust into the limelight and told to transform “billions to trillions,” to fill the yawning SDG financing gap.

The Pitfalls of Leverage Targets

Since the 2015 financing for development agreement, donor governments and their development finance institutions have all been singing from the same hymn sheet: we must do more to mobilize private investment. Here I will argue that setting leverage targets in isolation might not get us what we want: more investment in developing countries. Overall investment volumes in chosen markets may make a better target, but any incentives must be soft to minimize the temptation to put public money where it is not needed.

DFIs Embark on a Voyage of Rediscovery

Development finance institutions (DFIs) have long resisted the idea that they ought to support coordinated national development strategies in the countries that they invest in, but if conversations around private roundtables at the recent World Bank/IMF meetings are anything to go by, that’s where they may be heading. And if so, it may be the private sector itself that leads them there.