Recently, my colleague Clemence Landers argued that International Development Association (IDA), the largest source of concessional loans and grant finance for the world’s poorest countries, needs to “go big” in its next replenishment.
CGD Policy Blogs
The last eighteen months have shattered any pretense that global development can be taken as given. As ‘impatient optimist’ Bill Gates declared “The COVID-19 pandemic has not only stopped progress — it's pushed it backwards.” Beyond health, the COVID-19 crisis increased global poverty as well as national level inequality and cut into education.
The US International Development Finance Corporation has become a Rorschach test for the policy community: when they look at it, everyone sees something different.
There is not enough ODA to cope adequately with existing development challenges, and yet it is now being charged with funding a large share of donor country commitments toward global climate finance. We think it should be doubled.
Their Knowledge, Their Rights: Using Traditional Knowledge and Intellectual Property to Protect Communities
In the case of traditional knowledge, developing countries tend to be exporters rather than importers. They also tend to favor stronger protection of traditional knowledge through intellectual property laws, a position that distinctly contrasts with their calls for more flexible IP protection standards in general.
One of President Biden’s foreign policy campaign commitments was to hold a “Summit of Democracies” in the first year of his presidency. While skeptics have raised valid concerns—not least which countries should appear on the guestlist— a summit could spur useful reforms at home and abroad.
Makhtar Diop, former minister of finance in Senegal and current vice president for infrastructure at the World Bank, has been tapped to be the next head of the International Finance Corporation, the World Bank Group’s private sector investment arm. This is welcome news: Diop’s experience and talents can help steer IFC towards greater development impact during the COVID-19 pandemic and beyond.
Three ways that COP-26 could deliver for those countries are to properly define what counts as “new and additional” climate finance, make sure carbon markets rather than aid pays for the additional costs of mitigation in poorer developing countries, and agree to exempt the poorest countries from carbon tariffs.
Drugs created with billions in government support, bought almost exclusively by governments and international agencies are shrouded in secrecy: who is paying how much for delivery of what by when is a matter of guesswork and estimate.
These proposals would cost money (and so the need to work with Congress), but all are tied to America’s strategic interests and all would help the world exit the COVID pandemic and global recession with greater speed and resiliency.