Ideas to Action:

Independent research for global prosperity

Publications

 

July 20, 2015

Bringing US Development Finance into the 21st Century

The future of development policy is in development finance. Developing countries need aid less and less as their incomes rise and economies grow. What they need now is private investment and finance. US development policy, however, has failed to bring its development finance tools in line with this reality. Related US efforts have not been deployed in an efficient or strategic manner because authorities are outdated, staff resources are insufficient, and tools are dispersed across multiple agencies.

Other players are doing more. Well-established European development finance institutions (DFIs) are providing integrated services for businesses, and these services cover debt and equity financing, risk mitigation, and technical assistance. Moreover, emerging-market actors — including China, India, Brazil, and Malaysia — have dramatically increased financing activities in developing regions such as Latin America and Sub-Saharan Africa.

USDFC
March 17, 2015

Bringing US Development Finance into the 21st Century: Proposal for a Self-Sustaining, Full-Service USDFC

The imperative for US development finance has increased significantly due to a number of factors over the last decade. There is growing demand for private investment and finance from businesses, citizens, and governments in developing countries. Given the scale of challenges and opportunities, especially in promoting infrastructure investments and expanding productive sectors, there is an increasingly recognized need to promote private sector-based solutions. 

November 4, 2010

Commitment to Development Index 2010

The Commitment to Development Index (CDI) ranks 22 of the world’s richest countries on their dedication to policies that benefit the five billion people living in poorer nations. Moving beyond standard comparisons of foreign aid volumes, the CDI quantifies a range of rich country policies that affect poor people in developing countries.

October 10, 2007

The 2007 Commitment to Development Index: Components and Results

This CGD brief summarizes the results of the 2007 Commitment to Development Index (CDI), which ranks 21 of the world's richest countries on their dedication to policies that benefit the five billion people living in poorer nations. The Netherlands comes in first on the 2007 CDI on the strength of ample aid-giving, falling greenhouse gas emissions, and support for investment in developing countries. Close behind are three more big aid donors: Denmark, Sweden, and Norway.

June 15, 2006

Why Global Development Matters for the U.S.

Development refers to improvements in the conditions of people’s lives, such as health, education, and income. It occurs at different rates in different countries. The U.S. underwent its own version of development since the time it became an independent nation in 1776.Learn more about Rich World, Poor World: A Guide to Global Development

March 13, 2006

Building and Running an Effective Policy Index: Lessons from the Commitment to Development Index

The Commitment to Development Index (CDI), which ranks 21 countries across six policy areas, is widely seen as the most comprehensive and substantive measure of rich country policies towards development. In response to requests from other would-be index builders, CDI architect David Roodman describes the work of the interdisciplinary team that builds and runs the Index. Among the lessons: to work well, policy indexes must combine humility with a clear sense of purpose.

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June 7, 2005

Grants for the World’s Poorest: How the World Bank Should Distribute Its Funds

Time to put to rest the stale debate over whether the World Bank should disburse grants or loans to the world’s poorest countries. It is critical that the Bank provide more of its funding as grants, but in a more rational manner than has been the case to date. A third Bank window should distribute grants – and grants only – to very poor countries, for example, with incomes below $500 per capita. Shifting to grants-only for the very poorest countries would ensure they never again find themselves with unpayable debt burdens, and would allow them to re-invest resources into their own economies rather than repay the Bank.

February 5, 2005

From Pushing Reforms to Pulling Reforms: The Role of Challenge Programs in Foreign Aid Policy - Working Paper Number 53

This paper considers what role pull instruments or challenge programs (such as the World Bank's Poverty Reduction Support Credits or the United States' Millennium Challenge Account) could play within the overall framework of foreign aid, asking how they could be designed to function as effective and efficient incentive instruments and how they could best complement other aid modalities.

November 23, 2004

Underfunded Regionalism in the Developing World - Working Paper Number 49

This paper argues that regional public goods in developing countries are under-funded despite their potentially high rates of return compared to traditional country-focused investments. In Africa the under-funding of regional public goods is primarily a political and institutional challenge to be met by the countries in this region. But the donor community ought to consider the opportunity cost – for development progress itself, in Africa and elsewhere – of its relative neglect, and explore changes in the aid architecture that would encourage more attention to regional goods.

June 22, 2004

An Index of Donor Performance - Working Paper 42

The Commitment to Development Index of the Center for Global Development rates 21 rich countries on the “development-friendliness” of their policies. It is revised and updated annually. In the 2004 edition, the component on foreign assistance combines quantitative and qualitative measures of official aid, and of fiscal policies that support private charitable giving.

June 10, 2004

Is Africa’s Skepticism of Foreign Capital Justified? Evidence from East African Firm Survey Data - Working Paper 41

The world has increasingly recognized that private capital has a vital role to play in economic development. African countries have moved to liberalize the investment environment, yet have not received much FDI. At least part of this poor performance is because of lingering skepticism toward foreign investment, owing to historical, ideological, and political reasons. Results from our three-country sample suugest that many of the common objections to foreign investment are exaggerated or false. Africa, by not attracting more FDI, is therefore failing to fully benefit from the potential of foreign capital to contribute to economic development and integration with the global economy.

Todd J. Moss , Vijaya Ramachandran and Manju Kedia Shah
April 1, 2003

From Promise to Performance: How Rich Countries Can Help Poor Countries Help Themselves

At the United Nations Millennium Summit in 2000 the nations of the world committed to join forces to meet a set of measurable targets for reducing world poverty, disease, illiteracy and other indicators of human misery—all by the year 2015. These targets, later named the Millennium Development Goals, include seven measures of human development in poor countries. At the same summit, world leaders took on several qualitative targets applicable to rich countries, later collected in an eighth Goal. The key elements of the eighth Goal, pledge financial support and policy changes in trade, debt relief, and other areas to assist poor countries'domestic efforts to meet the first seven Goals. Combined, the eight Goals constitute a global compact between poor and rich to work today toward their mutual interests to secure a prosperous future.

February 27, 2003

New Data, New Doubts: Revisiting "Aid, Policies, and Growth" - Working Paper 26

The Burnside and Dollar (2000) finding that aid raises growth in a good policy environment has had an important influence on policy and academic debates. We conduct a data gathering exercise that updates their data from 1970-93 to 1970-97, as well as filling in missing data for the original period 1970-93. We find that the BD finding is not robust to the use of this additional data. (JEL F350, O230, O400)

Ross Levine and David Roodman

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