This week, World Bank president David Malpass took the unusual step of calling out the bank’s peer institutions, the Asian Development Bank (ADB) and African Development Bank, for lending irresponsibly into unsustainable debt environments.
CGD Policy Blogs
The US and China Have Very Different Takes on IDA and the Global Fund: Why that Matters for the Future of Multilateral Aid
When it comes to the United States, the reality is that the Global Fund is winning the fundraising game hands down. China, meanwhile, doubled its contribution to IDA—contrast that with the country’s longstanding indifference to the Global Fund. Clearly the world’s most important emerging donor views the multilateral architecture differently than the world’s most important traditional donor does.
The International Fund for Agricultural Development (IFAD) is facing big questions about how best to respond to evolving financing needs in its client countries. But does it currently have the right financial model to contribute meaningfully to the SDG 2 agenda?
HIPC with Chinese Characteristics: Why Yesterday’s Debt Relief Is the Wrong Point of Reference for Today’s Crises
Concerns about rising debt risks in developing economies were front and center at the annual meetings. HIPC is a useful reference point as we talk about a new round of debt crises. But thanks to the rise of China as a lender, the creditor community today looks much different from the HIPC creditor community—with implications for any resolution to a debt crisis.
China’s New Debt Sustainability Framework Is Largely Borrowed from the World Bank and IMF. Here’s Why That Could Be a Problem.
Is China's newly announced DSF up to the task?
The Chinese-financed effort to build a national railway through Laos is a quintessential project of the Belt and Road Initiative.
SDGs. Billions to trillions. South-South development cooperation. Development finance. If these terms resonate with you (positively or negatively), and you’ve never heard of the International Development Finance Club (IDFC), you should rectify that. At least, that’s the conclusion we’ve drawn after a year-long study of the IDFC and its member institutions. This work has culminated in a new CGD report, The International Development Finance Club and the Sustainable Development Goals: Impact, Opportunities, and Challenges.
CGD senior fellow Scott Morris on how the International Development Finance Club institutions could increase their development impact, and, in light of the passage of the BUILD act earlier this year, how the new US Development Finance Corporation can get off to a good start.
CGD research has become Exhibit A virtually every time the charge of “debt trap diplomacy” has been leveled against China in the media this past year. Yet, our research shows that many of China’s borrowers are managing their debts just fine and seem unlikely to fall into any traps.
In warning APEC leaders last week of China’s “constricting belt” and “one-way road,” Vice President Mike Pence provided the clearest signal yet that the US approach to foreign assistance will be shaped, if not determined, by competition with China. In the context of the administration’s trade war with China, this may not come as much of a surprise. But when it comes to the conduct of foreign assistance, it marks a striking turn away from the bipartisan approach to aid since the end of the Cold War—an approach defined around cooperation and one aimed at curbing the bad practices that arise when donors compete for the allegiance of aid recipients.