Ideas to Action:

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CGD Policy Blogs

 

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A Review of the Mid-Term Review of the IDA Private Sector Window

A few weeks ago, the World Bank’s soft-lending arm IDA held the mid-term review of its 18th round of funding. As background for the meeting, the World Bank produced a status update of the new IDA Private Sector Window (PSW) that I have blogged about before. The update provides valuable insight into how the $2.5 billion of PSW funding is being used at the halfway mark of its spending cycle but leaves some big unknowns.

Martin Chrisney at conference

Financing the SDGs with Martin Chrisney – CGD Podcast

Martin Chrisney, Director of the International Development Assistance Services Institute at KPMG, on why private sector investment is critical to financing the SDGs, how development finance institutions can “blend” together public and private finance, and what governments can do to kickstart economic growth.

 
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Don’t Let Development Finance Institutions Water Down Principles on Subsidizing Private Companies

In my last blog post on the IDA Private Sector Window, I noted the strong principles on subsidies to the private sector that were agreed by the heads of the multilateral development banks (MDBs) in 2012 as part of the Multilateral Development Bank Principles to Support Sustainable Private Sector Operations. Those principles can be summarized as “start with the public policy problem, use open offers or competitive approaches, maximize transparency.” It is interesting to compare the MDB principles to the principles which later emerged from the DFI Working Group on Blended Concessional Finance for Private Sector Projects.

 
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Redesigning the IDA Private Sector Window for Impact: Some Principles and Potential Practices

I have previously suggested that the current design of the $2.5 billion World Bank/IDA Private Sector Window (PSW) seemed an inefficient use of scarce aid resources, didn’t follow the World Bank’s own guidance on disclosure and design of subsidies to the private sector, and is noncompetitive, nontransparent, and unstructured. In this blog post, I offer some ideas on how the World Bank Group could reconstruct the PSW towards real development impact in the next round of IDA funding, to be negotiated in 2019.

graph compares median private capital inflow/GDP ratios over time for LICs, lower-middle-income countries (LMICs), and upper-middle-income countries (UMICs

Three Surprises about Private Capital Flows to Low-Income Countries

The formidable challenge of financing the Sustainable Development Goals has focused attention on the role of private capital in filling huge finance gaps. But for low-income countries (LICs), which receive only about 5 percent of total cross-border private capital flows to developing countries, there is little confidence that external private capital will make a significant contribution.

2013 World Bank Group / Fund Annual Meetings. 2013 Development Committee. Photo By: Eugene Salazar / World Bank

What CGD Experts are Watching at This Year’s World Bank/IMF Meetings in Bali

Why should countries invest in human capital? As emerging technologies impact economies and societies, how can we ensure that the most vulnerable are protected? Who will step up to finance the SDGs? Next week’s Annual Meetings of the World Bank and the IMF will convene 13,000 global policymakers, private sector executives, academics, and civil society members in Bali, Indonesia as they work to address these questions and more.

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