Domestic revenue mobilization (DRM) is critical for developing countries to finance the spending necessary to enable sustainable development.
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.
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.
The Commitment to Development Index ranks 40 countries on their development policies. How did your country do this year?
We explore the impact of major revenue mobilization episodes on income distribution dynamics using a new “narrative” database of major policy changes in tax and revenue administration systems, covering 45 emerging and low-income countries from 2000 to 2015.
The global impact of the COVID-19 pandemic on economic output and public finances in 2020 and beyond is projected to be massive. Fiscal policy can have a crucial role in mitigating the pandemic’s overall economic impact and promoting a quick recovery. It can help save lives and shield the most-affected segments of population.
The rising budget deficits and associated increases in public debt confronting the government of Papua New Guinea (PNG) make it difficult for the government to comply with the legislated debt ceiling of 45 percent of GDP within the foreseeable future.
Over the past two decades, China has become a major global lender, with outstanding debt claims from direct loans and trade advances alone exceeding 1.5 percent of world GDP. This surge in lending has financed many projects in infrastructure, mining, and energy. The problem is that there is little official data beyond those aggregate numbers, mainly because China has not released a breakdown of its lending activities.
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.
Around the turn of the century, there was a broad recognition that the debt burden of many developing countries was impeding their growth. Much of the debt had accumulated in the context of the Cold War and had not resulted in productive investment.
A new US government agency began as scrawl on a napkin in a think tank seminar room just off Dupont Circle in Washington, DC. Fast forward nine years, in early 2020, the US International Development Finance Corporation was born.
In this paper, we estimate short- and long-term tax buoyancy for 44 sub-Saharan African (SSA) countries during 1980-2017 using time series and panel techniques.
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.
Finance for International Development (FID): A New Measure to Compare Traditional and Emerging Provider Countries’ Official Development Finance Efforts, and Some Provisional Results
In this working paper we present a new indicator—Finance for International Development (FID)—that attempts to fill this gap by measuring in a comparable way the flows of official, cross-border concessional finance provided by 40 major economies
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.
China’s lending volumes in developing countries far surpass those of other bilateral creditors and compare in scale only to World Bank lending practices. Where World Bank lending terms, volumes, and policies are publicly available, the state of knowledge on official Chinese financing terms remains limited due to a lack of official transparency.
There is a little-noticed but important difference between the World Bank’s original goal for poverty reduction and the subsequent UN Sustainable Development Goal (SDG). While both target the “$1.90 a day” poverty rate, the Bank’s goal was a 3% rate by 2030, while the SDG is to “eradicate” poverty by 2030.
“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?