Tag: Investment

 

When China Looks at MDBs, It Sees Infrastructure

Blog Post

When the Chinese government launched a new multilateral development bank (MDB) with “infrastructure” in the name—the Asian Infrastructure Investment Bank (AIIB)—it hardly seemed far-fetched to assume a strong Chinese preference for infrastructure-related MDB financing. Everything we know about China’s bilateral development financing suggests the same. Yet, a closer look at the AIIB’s charter suggests openness to a broader range of sectors and activities, pointing to potential for investments in “other productive sectors.”

Publications

Funding the global public good of technology is a useful way for donors to leverage the impact of their aid. Different types of technologies appear to be important to development progress, and to spread, in different ways. ‘Lab coat technologies’ (inventions) spread easily and improve quality of life, ‘process technologies’ (institutions) spread with difficulty and are important to economic growth. For all donor interventions, however, it appears that context matters—the same technology or investment has varied impact in different environments. Donors should take the importance of context on board when designing their technology interventions.

Is OPIC Focused on the Private Sector’s Biggest Constraints?

Blog Post

In an ideal world, development finance institutions (DFIs) should focus on the biggest constraints for businesses in developing countries. This helps to expand their impact beyond a single project or investment, thereby producing more systemic benefits. However, this is a particularly challenging issue for many DFIs given their operating models, which are typically driven by investor priorities.

Publications

Emerging market countries that manage to diversify and upgrade their production and export base grow more rapidly and enjoy greater welfare gains than those that do not.  Foreign direct investment in manufacturing is concentrated in middle- and upper-skilled activities -- not lowest-skilled operations -- and thus offers many opportunities for structural transformation of the host economy.  But the challenge of using FDI to diversify and upgrade the local production and export base is fraught with market failures and tricky obstacles.  Contemporary debates about industrial policy as a development tool focus on how best to overcome these market failures and other difficulties.

Dealing with Big Tobacco Bullies Part 2: The Trade and Investment Angle

Blog Post

Colleagues Amanda Glassman and Bill Savedoff posted an excellent piece on the role of the World Bank, the US Agency for International Development, and other nontrade agencies in helping developing countries fend off the “Big Tobacco Bullies.” They argue that agencies like the World Bank could use their money, technical assistance, and policy dialogue to provide big visible support for developing countries to implement their anti-tobacco policies.

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