International Financial Institutions

The international financial institutions (IFIs) – the IMF, World Bank, and other multilateral development banks – are major sources of financial and technical support for developing countries. While their influence on development outcomes is often less then their more virulent critics contend, nonetheless it can be quite substantial, especially in smaller low-income countries. Yet the policies of these institutions are largely determined by the major shareholders – the rich countries that provide most of the capital – rather than by the borrowers.

CGD research and analysis offers innovative, practical suggestions for making the IFIs more responsive to the needs of the developing countries, thereby increasing the positive impact of the IFIs work on global development. For example, CGD research contributed to a series of policy changes in the World Bank and elsewhere that have opened the way for debt relief for Nigeria.  The Center's most recent publications on the IFIs are Rescuing the World Bank and "The Hardest Job in the World: Five Crucial Tasks for the New President of the World Bank."

Kemal Dervis and Nancy Birdsall propose a new lending instrument, The Stability and Growth Facility, to be housed either at the IMF or the World Bank. The Stability and Growth Facility would provide a predictable source of long-term funds at a cost low enough to help high-debt emerging market countries reduce their debt burdens without having to forego vital pro-poor expenditure programs.