The Future of IDA Working Group shows how IDA could adapt to changing circumstances. By 2025, IDA-eligible countries will be half as large in number and one-third as large in population; they will also be almost exclusively African and much lower performing economically. The working group explores the options available to IDA, from small tweaks to the status quo to bold alternatives for the future.
No Longer Poor: Ghana’s New Income Status and Implications of Graduation from IDA - Working Paper 300
Ghana’s rapid economic growth and the recent GDP rebasing exercise put Ghana suddenly above the income limit for IDA eligibility. This paper considers the implications of the country’s new middle-income status.
This brief on the General Capital Increase is one of a suite of policy briefs that provides basic background information and practical analysis of the financial and governance issues facing the international financial institutions.
By 2025, the number of IDA client countries will likely shrink substantially and primarily be smaller in size and overwhelmingly African. This working paper predicts how these changes will impact IDA's operational and financial models and recommends the World Bank begin addressing the implications of these developments sooner rather than later.
After dramatically increasing their lending during the global financial crises, the international financial institutions are requesting an unusual General Capital Increase. Senior fellow Todd Moss and co-authors explain what this means—and why it’s important.
This CGD working group report offers five practical recommendations for strengthening the International Development Association (IDA)--the World Bank's soft-loan facility for the world's poorest countries--as donors begin replenishment talks that will shape IDA's course from mid-2008 through mid-2011. Among the recommendations: affirm IDA's central role in the international aid system; focus on core tasks; don't hold IDA hostage to broader geopolitical issues; get serious about finding ways to help fragile states; and sharpen incentives for performance.Learn more
China's bid for a leading role in Africa gained sudden visibility on the weekend with an unprecedented gathering of leaders from 48 African countries in Beijing. Chinese president Hu Jintao pledged to double aid and to offer $5 billion in loans by 2009. China's newly high-profile overtures towards Africa have raised eyebrows—and a fair bit of anxiety—among Africa’s traditional development partners. Will Chinese lending lead to a new African debt crisis? In a new CGD Note, senior fellow Todd Moss and research assistant Sarah Rose examine the growing clout of a little-known instrument of China's Africa policy, the Export-Import Bank of China, and offer some advice for the West. Learn more
In this CGD Note, CGD vice president Dennis de Tray and senior fellow Todd Moss argue that international financial institutions should transform their boards of resident executive directors into non-resident, non-executive bodies. Doing so would force the governing bodies to focus on their core responsibilities, increase accountability and reduce costs of all kinds. They urge the African Development Bank to go first. Learn more
Donald Kaberuka, the new president of the African Development Bank, leads an institution whose financial standing has been restored from the near collapse of 1995, but whose operational credibility remains a work-in-progress. This CGD working group report offers external, independent advice to Kaberuka and the Bank's board of directors on broad principles to guide the Bank’s renewal. The report contains six bold yet achievable recommendations for management and shareholders as they address the urgent task of reforming Africa's development bank. Prominent among the recommendations is a strong focus on infrastructure.
The international goal for rich countries to devote 0.7% of their national income to development assistance has become a cause célèbre for aid activists and has been accepted in many official quarters as the legitimate target for aid budgets. The origins of the target, however, raise serious questions about its relevance.
Nigeria has $33 billion in external debt. The government has been trying unsuccessfully for years to cut a deal with creditors to reduce its external obligations but to date has only managed to gain non-concessional restructuring. The major creditors also have good reasons for wanting to seek a resolution, yet agreement has been elusive. Fortunately, there is a brief window of opportunity in 2005 to find a compromise that can meet the needs of both sides. This note briefly outlines a proposal for striking such a deal through a discounted debt buyback.
Double-Standards, Debt Treatment, and World Bank Country Classification: The Case of Nigeria - Working Paper Number 45
Nigeria is currently classified by the World Bank as a ‘blend’ country, making it the poorest country in the world that does not have ‘IDA-only’ status. This paper uses the World Bank’s own IDA eligibility criteria to assess whether Nigeria has a case for reclassification.
The Trouble with the MDGs: Confronting Expectations of Aid and Development Success - Working Paper 40
*REVISED Version September 2004
The Millennium Development Goals (MDGs) are unlikely to be met by 2015, even if huge increases in development assistance materialize. The rates of progress required by many of the goals are at the edges of or beyond historical precedent. Many countries making extraordinarily rapid progress on MDG indicators, due in large part to aid, will nonetheless not reach the MDGs. Unrealistic targets thus may turn successes into perceptions of failure, serving to undermine future constituencies for aid (in donors) and reform (in recipients). This would be unfortunate given the vital role of aid and reform in the development process and the need for long-term, sustained aid commitments.