In 2019/2020 donor governments are anticipated to pledge up to $170 billion to various multilateral organisations as part of their replenishment cycles. This unusual bunching of replenishments of some of the largest organisations in 2019 provides an opportunity to think more coherently about multilateral funding and to address key systemic problems, such as overlapping mandates and under-funding of some parts of the system.
MDB private sector operations or windows (PSWs) are essential actors in mobilizing private finance for development, but their mobilization track record to date falls far short of a meaningful contribution to annual SDG financing gaps in the trillions
This paper attempts a first-cut listing of global public goods and international spillover activities, as well as providing some data on their global distribution alongside basic correlational analysis. Few if any goods are “pure” global public goods and there is a spectrum of the extent of spillovers. Some global public goods are not well measured. The listing is far from exhaustive, nor is it based on rigorous selection criteria. But it does suggest considerable diversity in trends, levels and sources of public good and spillover activities.
Development Finance Institutions (DFIs)—which provide financing to private investors in developing economies—have seen rapid expansion over the past few years. This paper describes and analyses a new dataset covering the five largest bilateral DFIs alongside the IFC which includes project amounts, standardized sectors, instruments, and countries. The aim is to establish the size and scope of DFIs and to compare and contrast them with the IFC.
Inside the Portfolio of the International Finance Corporation: Does IFC Do Enough in Low-Income Countries?
IFC’s portfolio is not focused where it could make the most difference. Low income countries are where IFC has the scale to make a considerable difference to development outcomes. While an excessive portfolio shift might imperil IFC’s credit rating, the evidence suggests that there is considerable scope for increasing commitments to low income countries without significant impact to IFC’s credit scores.
The purpose of this note is to provide a realistic analysis of where MDBs have made progress in improving performance and governance, the risks and challenges they and their shareholders confront today, possible areas of US-China collaboration, and a specific recommendation for a joint effort.
It is time to take a fresh look at the PSWs and to ask some basic questions about their role and instruments. The aim of this essay is to raise issues that need to be addressed as we think about how PSWs should evolve and adapt to meet the formidable challenges ahead. These questions and the answers gained through careful research can help chart the right course and set the right expectations for MDB PSWs, DFIs, and impact investors generally.
Under managing director Christine Lagarde, the International Monetary Fund (IMF) has become a champion for gender equality. This note examines how much the IMF’s dialogue with its member countries has changed as a result of the labeling of gender as a "macrocritical" issue. In short, there has been increased attention to the issue as reflected in word counts and discussion of women’s labor force participation, but there is still a long way to go.
The Asian Infrastructure Investment Bank (AIIB) has enjoyed considerable success in its young life. The challenge going forward is to translate this resounding political success into operational effectiveness and sound strategy. Given the political dimensions of this new institution, it is also worth considering what it will mean for other MDBs like the World Bank and the ADB. There are large questions of political leadership in the multilateral “system” but also an array of issues on which the AIIB could help shape a new system-wide approach, whether defined by some division of labor among the MDBs or by introducing institutional innovations.
Having more women peacekeepers is linked with large reductions in sexual misconduct by peacekeepers and more sustainable peace. The UN could potentially raise the proportion of women peacekeepers to 20 percent for around $75 million.A small multilateral trust fund would offer supplementary payments to troop contributingcountries for each woman peacekeeper provided.
At present rates of progress, it will take more than three centuries for the UN to see the same number of women as men in peacekeeping operations, even though evidence suggests that increasing the proportion of women in operations will improve the success rate of peacekeeping missions and reduce levels of sexual misconduct. One method to speed up the march to equality could be financial incentives directed at troop contributing countries. These could significantly increase the proportion of women peacekeepers, potentially for as little as $77 million per year.
In the face of growing U.S. indifference to multilateral development institutions, China is stepping up. The circumstances around the creation of the Asian Infrastructure Investment Bank (AIIB) have usefully brought to light a longer trend that will ultimately lead to a diminution of U.S. leadership in the multilateral development system.
Multilateral Development Banking for this Century's Development Challenges: Five Recommendations to Shareholders of the Old and New Multilateral Development Banks
Recognizing the growing global premium on environmental sustainability in a climate-challenged world, we call on member governments of the World Bank to take the first step in that direction by renaming the International Bank for Reconstruction and Development (IBRD) as the International Bank for Reconstruction and Sustainable Development (IBRSD)—and to reshape its mission accordingly, toward leadership on issues of the global commons or global public goods that are squarely in the development domain and require a global shareholder base to respond collectively. Shareholders should in turn look to the regional MDBs to take leadership in supporting the new imperative of sustainable development through country and regional operations across all sectors, but particularly in increasing investment in infrastructure that takes into account the logic of low-carbon and climateresilient economies in the developing world. In line with this approach to differentiated roles within an MDB system, the panel makes five recommendations to better realize the MDB system’s potential for meeting today’s development challenges.
The United States Government has the requisite technical know-how, financial and logistical resources, and bipartisan political support to lead the response to enduring global health challenges, and it is critical that the United States is prepared to meet them. This memo’s six recommendations are the result of a roundtable discussion on how the next administration and Congress can update and improve on the US global health engagement model.
The European Union is a unique and inspiring association. We are alarmed that a narrow majority of the British people might choose to destroy that by voting to leave the European Union, undermining our ability to secure our foreign, economic, and international development interests. This would be harmful for Britain and for the rest of the world.
Many developing countries need the World Bank’s capital less and less. What role should the Bank play in the 21st century? This paper argues that many features of the Bank today reflect a new role. That role, resting on the economic theory of bargaining and public good provision, is to reduce extreme poverty. Donor subsidies to the Bank already reflect this role, which implies new ways to structure and evaluate the Bank’s work.
The Role of Industrial Policy as a Development Tool: New Evidence from the Globalization of Trade-and-Investment
Emerging market countries that manage to diversify and upgrade their production and export base grow more rapidly and enjoy greater welfare gains than those that do not. Foreign direct investment in manufacturing is concentrated in middle- and upper-skilled activities -- not lowest-skilled operations -- and thus offers many opportunities for structural transformation of the host economy. But the challenge of using FDI to diversify and upgrade the local production and export base is fraught with market failures and tricky obstacles. Contemporary debates about industrial policy as a development tool focus on how best to overcome these market failures and other difficulties.
The United States has been at the forefront of providing several development-related global public goods, including peace and security via its contributions to international peacekeeping, the monitoring of international sea trade routes, its engagement in forums such as the Financial Action Task Force to stem flows of funding to terrorist organizations, and more. Yet it has not fully capitalized on its comparative advantage in research and development at home that matters especially for the world’s poor, or on its opportunities for globally transformative investments abroad in such areas as clean power and disease surveillance. We propose two areas where the United States should lead on providing even more transformative global public goods.