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Cranes in Vietnam

Trillions for the SDGs? Time for a Rethink

In 2015, the world enthusiastically signed on to the challenge of transforming billions to trillions of dollars of private finance for the Sustainable Development Goals (SDGs). The idea was to use public and private development aid to unlock much more commercial private finance for sustainable growth and poverty reduction in developing countries.

pen on document

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.

Martin Chrisney at conference

Financing the SDGs with Martin Chrisney – CGD Podcast

Martin Chrisney, Director of the International Development Assistance Services Institute at KPMG, on why private sector investment is critical to financing the SDGs, how development finance institutions can “blend” together public and private finance, and what governments can do to kickstart economic growth.

 
watercolor paint

Don’t Let Development Finance Institutions Water Down Principles on Subsidizing Private Companies

In my last blog post on the IDA Private Sector Window, I noted the strong principles on subsidies to the private sector that were agreed by the heads of the multilateral development banks (MDBs) in 2012 as part of the Multilateral Development Bank Principles to Support Sustainable Private Sector Operations. Those principles can be summarized as “start with the public policy problem, use open offers or competitive approaches, maximize transparency.” It is interesting to compare the MDB principles to the principles which later emerged from the DFI Working Group on Blended Concessional Finance for Private Sector Projects.

 
international currencies

Redesigning the IDA Private Sector Window for Impact: Some Principles and Potential Practices

I have previously suggested that the current design of the $2.5 billion World Bank/IDA Private Sector Window (PSW) seemed an inefficient use of scarce aid resources, didn’t follow the World Bank’s own guidance on disclosure and design of subsidies to the private sector, and is noncompetitive, nontransparent, and unstructured. In this blog post, I offer some ideas on how the World Bank Group could reconstruct the PSW towards real development impact in the next round of IDA funding, to be negotiated in 2019.

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