December 8, 2020
Some Thoughts on Country Platforms
Here are five questions that the G20 IFA Working Group might want to answer if it is to harness the energy of the enthusiasts and quell the skepticism of the cynics.
Publications
July 24, 2020
Transparency at Development Finance Institutions: Moving to Better Practice
Development finance institutions (DFIs) suggest that transparency is important to their development impact, and many aim to be in a leadership position on reporting about their work, but actual practice on transparency varies significantly between DFIs.
July 22, 2020
Harder Times, Softer Terms: Assessing the World Bank’s New Sustainable Development Finance Policy Amidst the COVID Crisis
The World Bank’s non-concessional borrowing (NCBP) policy for IDA countries was introduced in 2006 following major rounds of debt relief and debt cancellation for a large subset of these countries through the Heavily Indebted Poor Country Initiative and the Multilateral Debt Relief Initiative.
May 6, 2020
Making the IMF’s Special Drawing Rights Work for COVID-19 Economic Relief
Many prominent people have advocated that the IMF undertake an “SDR allocation” to assist countries in dealing with the global financial crisis brought about by the COVID-19 pandemic. If IMF shareholders show some leadership and bureaucratic flexibility, there are ways to allay the American government’s concerns and quickly get liquidity in the hands of countries who desperately need it.
April 14, 2020
Eight Principles for the DFI Crisis Response
DFIs are not central banks. They do not drive monetary policy stances and overall lending conditions in their countries of operations. Rather, during economic and other shocks, they must find ways to restart or boost financial intermediation for direct and systemic impact on target populations, sectors, and countries. But they must do so with an eye on their own balance sheets.
April 3, 2020
Confronting the Macroeconomic Challenges of Climate Change: The Road Ahead for the IMF
Adapted from a seminar with the IMF and climate experts that CGD co-sponsored with the European Climate Foundation, this note looks at the role that the IMF can take to help tackle climate change.
March 27, 2020
What to Do When You Can’t Prove DFI Additionality
“Additionality” is central to claims of impact by development finance institutions (DFIs). At its core is the notion that DFIs are necessary to solve a market failure by providing capital, risk mitigation, or some other benefit to a market that is not delivering these services strictly through private actors. But what exactly constitutes additionality, how do we know when it is real, and how can we measure it?
March 4, 2020
Why Congress Should Authorize the IFC Capital Increase
In May 2018, the shareholders of the International Finance Corporation (IFC)—the private sector arm of the World Bank—agreed to increase its paid-in capital by $5.5 billion as part of the $13 billion capital increase for the World Bank Group (WBG). The US administration agreed to the increase but declined to contribute to the additional capital. But for the increase to take effect, Congress must authorize it. Thus far, it has not done so. Why?
February 6, 2020
The Subsidy Sorting Hat
In the Harry Potter novels, a magic hat decides which of four school houses new pupils should join. Development finance institutions (DFIs) need something like that when trying to decide which private firms to subsidise, although applicants only need sorting into two groups: firms that are doing something socially valuable and which genuinely require a subsidy, and firms that are merely trying their luck to get a subsidy for a project they would undertake in any case.
November 21, 2017
Toward Better Multilateral Development Banks: Can the United States and China Lead Together?
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.
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