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CGD Policy Blogs

 

Joe Biden speaking at the 2019 Iowa Federation of Labor Convention in Altoona, Iowa. Photo by Gage Skidmore / via Wikimedia Commons

$1.9 Trillion and No Money for the Multilateral Development Banks?

The Biden administration and the Congress rightly went big in the recently passed American Rescue Plan at a time of tremendous need. The package was appropriately focused on the domestic side, but it did not neglect the rest of the world. One might reasonably ask then why $1 billion or $2 billion could not have been included for fighting the poverty, food insecurity, and health crises driven by the pandemic. That would have amounted 0.05 to 0.1 percent of the total package. And it would have been multiplied many times over in additional poverty reduction dollars, because that it was the MDB model does.

An image of Latin American currency.

The Case for an IDB Capital Increase Is Everywhere Except in the IDB’s Lending Numbers

Today the IDB is again making the case for a capital increase to its shareholders. Yet, despite an unfolding crisis that threatens development progress in Latin America to a degree that eclipses the Global Financial Crisis,  talk of a financing cliff at the bank is absent from its appeal for more capital. That’s because a spike in crisis financing has yet to materialize in IDB’s lending numbers.