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.
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.
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.
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.
With two major announcements on trade and climate at November’s APEC meetings, the United States and China have leaped into a highly productive bilateral relationship in the economic sphere. It’s all the more striking then to hear the discordant tone struck around the Asian Infrastructure Investment Bank (AIIB).
The World Bank should declare the IDA-17 replenishment its last and move to replace it with a broader bank resource review. Sticking with the status quo risks an underfunded institution and one that is increasingly isolated from its shareholders (yes, that would be a bad thing).
The spotlight may be on Jim Kim’s new strategy for the World Bank this year, but Luis Alberto Moreno is busy pursuing an overhaul of his own at Washington’s other multilateral development bank (MDB).
The World Bank should be ambitious in working toward clean energy approaches in its development strategies, but it would be a mistake to definitively rule out coal in all circumstances. Such a decision would be bad for development and would also undermine the very goals that the bank’s coal critics espouse by further pitting developing and developed countries against each other in the climate debate occurring within the bank. The key challenges are to identify the relevant development needs related to coal-fired generation, to define the role of the bank, and to elaborate guidelines to direct decisions. In this essay, we discuss the broad issues and then summarize what the guidelines likely would mean in practice.
William Savedoff looks at the long history of global multipolarity and forecasts what recent geopolitical changes mean for the future of international cooperation.
In this short essay, senior fellow David Wheeler compares the world’s foreign assistance architecture to how the rest of the world operates in the digital age. He suggests that multilateral and bilateral transactions from one behemoth to another may be stuck in the past now that technology can and should create more person-to-person foreign aid programs.
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.
Paul Collier's new book, The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It, argues that many developing countries are doing just fine and that the real development challenge is the 58 countries that are economically stagnant and caught in one or more "traps": armed conflict, natural resource dependence, poor governance, and geographic isolation. In a review of the book recently published in Foreign Affairs, CGD research fellow Michael Clemens explores whether or not Collier's proposed solutions constitute a practical middle path between William Easterly's development pessimism and Jeffrey Sach's development boosterism.
Chinese foreign aid is rising fast and Western aid agencies are concerned: will Chinese aid undermine efforts to promote reform in Africa and elsewhere? Will Chinese loans burden poor countries with fresh debt? In this new essay, CGD visiting fellow Carol Lancaster provides a concise and accessible overview of what is known--and not known--about the Chinese aid system. She advises aid agencies in Europe, North America and Japan to increase communication and to seek opportunities for collaboration with Beijing.
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.