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.
CGD Policy Blogs
It’s time for the MDBs to launch a realistic program for financing African infrastructure—a program that is appropriate for the realities of the region and the urgency of its infrastructure needs, writes Gyude Moore.
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.
Can Blended Finance and Industrial Policy Work Together to Provide the Financing Developing Countries Need?
There are two discussions—on blended finance and industrial policy—that have been happening largely in parallel, but it’s becoming clear that they must intersect.
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.