This week, MCC edged one step closer to securing new authorities that would better position the agency to undertake regional programming. Similar provisions were included in fully five bills in the 114th Congress, but none made it over the finish line. Hopefully 2018 will be the year.
CGD Policy Blogs
As world leaders convene in Davos this week, the global migration crisis finds itself buried in the agenda.
In a world with the 2030 Agenda for Sustainable Development, the international investment policy system stands as an obsolete regime in urgent need of revision and reform. This is the main conclusion of the analysis that the think tank CIECODE conducted for CGD’s 2017 Commitment to Development Index (CDI). The analysis measures the amount of “sustainable development content” included in International Investment Agreements (IIAs) signed between developing and developed countries. Here, we look at best practices, main issues and which countries could do better.
Chart of the Week #3: Why the World Bank Should Ditch the "Doing Business" Rankings—in One Embarrassing Chart
Last week the World Bank's Chief Economist, Paul Romer, told the Wall Street Journal the Bank had manipulated its own competitiveness rankings to undermine Chile's socialist government, and hinted Chile might not be alone—then he retracted the claim. Romer's conspiracy theories probably aren't credible, but neither are the Doing Business numbers.
Can Taxes Postpone Millions of Deaths Worldwide? A New Task Force Led by Michael Bloomberg and Lawrence Summers Inquires
This week, Mayor Michael Bloomberg and former Treasury Secretary Lawrence Summers announced a new Task Force on Fiscal Policy for Health. This is the first time such a high-level group of respected economic and fiscal policy opinion leaders has convened on this issue, creating an opportunity to acknowledge the importance of taxes for promoting health and to take action to save lives.
Sometime around 2045, Nigeria’s population will pass the United States in size. Nigeria isalready the world’s most under-powered country in the world relative to its income—nearly 80 percent below global trends. As large as the power gap is today, what will Nigeria’s electricity generation capacity look like in 30 years?
Vijaya Ramachandran, Ben Leo, Jared Karlow and I have just published two papers looking at where and in what capacity the IFC, OPIC, and selected European development finance institutions (DFIs) are investing their money. The core of the papers is a dataset that Jared painstakingly put together by scraping public documentation about DFI projects. It wasn’t easy because DFIs are considerably behind many aid agencies in releasing usable data on their portfolios. And that lack of transparency presents a significant problem if those same DFIs spend aid money on subsidizing the private sector.
The International Finance Corporation’s Mission Is Facilitating Risky Investments—So Why Is It Taking on Less and Less Risk?
The IFC is designed to catalyze investments in countries that investors might consider too risky to invest in alone. But our recent analysis of IFC’s portfolio found that it is shying away from risky investments, raising serious questions about whether the IFC is focusing on the places where it can make the most difference.
On Friday, the World Bank’s chief economist, Paul Romer, told the Wall Street Journal that the Bank unfairly influenced its own competitiveness rankings. He highlighted the case of Chile which suffered lower rankings on the Doing Business index during the Bachelet administration versus the Piñera years, and recalculated these rankings on his personal blog. Today, he issued a clarification of his views.
In recent months, USAID has been working diligently to craft its approach to “strategic transitions,” framing the principles it will follow, the benchmarks that will help inform transition decisions, and the programs and tools it can bring to bear. This Thursday, in a public discussion with the agency’s Advisory Committee on Voluntary Foreign Aid (ACVFA), USAID will outline its initial thinking about strategic transitions. Our recent paper, Working Itself Out of a Job: USAID and Smart Strategic Transitions, offers some advice to the agency as it charts the course ahead. Here are the main takeaways.