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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.

 

changes in EU agricultural budget over time

What the EU Budget Means for Developing Countries: Agriculture and Development

Three weeks ago, the European Commission published its initial proposal for the EU’s budget from 2021 to 2027. The headlines? Overall spending would rise despite the loss of the UK, and development spending and ‘external action’ could see increases. But both agriculture and regional spending would be cut. This blog post is the first in a series analyzing the Commission’s proposals for its “long-term budget” and looks specifically at the agriculture budget and its global development impact.

Development Cooperation Has Emerged a Winner in the EU’s 2021-2027 Budget Proposal, but the Odds Are Stacked against It

The long-awaited European Commission Communication on the Multiannual Financial Framework (MFF) 2021-2027—the EU’s long-term budget—has been unveiled, and so begins the EU’s big battle over money and priorities. Brace yourselves for a long arduous struggle that will expose divisions in the bloc in all sorts of ways—payers vs. recipients, east vs. west, north vs. south, federalists vs. intergovernmentalists, values vs interests. This is also the review that will shape the future of EU development cooperation and the credibility of the EU as a major player in the international development sphere. Does the Commission’s proposal live up to the challenge?

The World Bank’s Preference for Private Finance: Explained

Last year the World Bank adopted a new “cascade” approach that intended to maximise finance for development by prioritising private solutions wherever possible. In what world would this “cascade” algorithm make sense? Without a good answer to that question, the cascade risks looking like ideology rather than sound development finance advice.

Dude, Where’s My Cat Bond?

 “Cat” bonds are effectively a cheaper source of large-scale insurance coverage against clearly measured risks like earthquakes, storms, or even disease outbreaks. Generally, though, coverage hasn’t trickled down to the poorer and most at-risk countries—precisely those which are most vulnerable when aid fails to arrive or arrives piecemeal. Scaling up this market for lower-income countries would provide better shielding against many risks that undermine development overseas.

Destination Havana: Getting Investment Flowing Might Be Tougher Than You Think

Lifting the trade and investment embargo on Cuba is a laudable policy objective that would allow Cubans better access to American goods and services. It might also give American businesses a boost, including from places that could do with one, like rural Louisiana. Changing the law will be an uphill struggle unless November’s elections transform Congress. But even if Congress can agree, changes to the law might not be sufficient to convince investors to go to Cuba.

Four Challenges for Blended Finance and Development Finance Institutions

Overseas development assistance amounts to about $135 billion dollars annually, but the cost of paying for the Sustainable Development Goals will be in the trillions. As a result, blended finance is something of a buzz phrase these days. I left a workshop on blended finance last week in Paris excited about the potential of these new structures and instruments to deliver social returns. But I was also struck by the challenges DFIs and their advocates must overcome in order to fully realize that potential. 

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