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.
Last year, the Asian Development Bank (ADB) management proposed a major financial restructuring that would increase the amount of bank capital available for investment. This proposal offers many benefits in and of itself. But it also creates an opening for additional and complementary changes in governance that would greatly strengthen the bank and would ensure all of the benefits of the restructuring are fully captured. The merger proposal represents a highly credible down payment by the ADB on a set of innovations that can greatly expand the institution’s ability to respond to the region’s needs and opportunities—and in the process, stimulate similar dynamics at other MDBs.
In this paper I discuss the ownership and financial structure and related governance arrangements, including leadership selection, of the World Bank and the Inter-American Development Bank.
Climate negotiations have focused on reaching a top-down international agreement and on mobilizing a pool of financial resources. This brief explains the urgent need for a new entity to provide nonfinancial services to faciliate and augment climate action that any nations and private actors take. It explores one possible path for filling the gap: the creation of a new arm of the World Bank.
This course introduces students to the relations among growth, inequality and globalization of economic markets, with a focus on implications for the developing world.
Nancy Birdsall discusses the future role of the World Bank in addressing global commons problems, using the example of climate management and financing to set out the principal-agent problem facing the global development and climate communities.
Nancy Birdsall urges Senator Leahy to support approval by the United States of the proposed new lending instrument at the World Bank, Program for Results Financing (P4R).
In this CGD Essay, Birdsall and Subramianian argue that the World Bank faces twin crises of relevance and legitimacy in a rapidly changing world. The solution, they argue, is for the bank to become a more active catalyst for generating global public goods and knowledge and a more reluctant lender to governments. The World Bank should move, in effect, from being a bank to being a global development cooperative. The essay suggests specific, practical steps for such reforms.
In this Essay, CGD president Nancy Birdsall describes the World Bank as a global club with a structure close to that of a credit union in which the members are nations. Its mission, as originally conceived–-to promote broadly shared and sustainable global prosperity--serves the common interests of all its country members. In light of this idea of the Bank as a global credit club, Birdsall addresses the issues that arise with respect to its current governance structure and how these issues affect the Bank's legitimacy, effectiveness and relevance in the global system.
Does aid to Africa undermine the emergence of a robust African middle class? If so, what can be done about it? In this new working paper, CGD president Nancy Birdsall argues that high and unpredictable aid flows could be making life harder for Africa's small and medium-sized businesses by, for example, inflating wages and making governments less reliant on domestic revenue—and hence less accountable to taxpayers. She urges that donors systematically monitor such impacts in aid-dependent countries and suggests ways that aid could help to bolster Africa's crucial but fragile middle-income groups. Learn more
Critics allege that the World Bank is deeply flawed. Yet the world needs a strong World Bank to help manage development and the related global challenges of the 21st century. Do the Bank's shortcomings put its future at risk? If so, can the Bank be rescued? Rescuing the World Bank, a new book that includes a CGD working group report and selected essays edited by CGD president Nancy Birdsall, offers timely perspectives on challenges that are crucial to the Bank’s future success.
Each year billions of dollars are spent on thousands of programs to improve health, education and other social sector outcomes in the developing world. But very few programs benefit from studies that could determine whether or not they actually made a difference. This absence of evidence is an urgent problem: it not only wastes money but denies poor people crucial support to improve their lives.
Nancy Birdsall and Kemal Dervis propose that a "Stability and Social Investment Facility" be housed either at the IMF or the World Bank to offer emerging market economies with high debt-burdens lonas on a concessional basis. Read this CGD Working Paper to see how this Facility would be a useful step forward in promoting pro-poor growth.
This new report by a group comprising several of Latin America's most influential economic policymakers, CGD senior fellow Liliana Rojas Suarez, and CGD president Nancy Birdsall suggests ways for the IDB to become more flexible and to step up its support for market oriented reforms. The IDB's new president, Luis Alberto Moreno, warmly endorsed the recommendations, calling them "a key agenda."
Debt and Development: How to Provide Efficient, Effective Assistance to the World's Poorest Countries
Nancy Birdsall testified in front of a subcommittee of the House Committee on Financial Services concerning debt relief and IMF gold.
This report was prepared by a Working Group convened by the Center for Global Development to identify key priorities the Paul Wolfowitz at the start of his tenure at the World Bank on June 1, 2005. It argues that Wolfowitz's biggest challenge will not be managing the Bank, with its 10,000 staff, but leading its shareholders, the nations of the world. The report offers five bold but practical recommendations for restoring the legitimacy and increasing the effectiveness of the world's largest development institution.
This new CGD Note by Center for Global Development President Nancy Birdsall and Institute for International Economics Senior Fellow John Williamson argues that sale of a portion of IMF gold makes sense as a way to create a more transparent institution and use a global resource for debt relief for the world’s poorest countries.
The historic 2002 United Nations Conference on Financing for Development in Monterrey, Mexico, overlooked a crucial question: regionalism. Financing Development: The Power of Regionalism is designed to correct this omission.