Overseas development assistance amounts to about $135 billion dollars annually, but the cost of paying for the Sustainable Development Goals will be in the trillions. As a result, blended finance is something of a buzz phrase these days. I left a workshop on blended finance last week in Paris excited about the potential of these new structures and instruments to deliver social returns. But I was also struck by the challenges DFIs and their advocates must overcome in order to fully realize that potential.
CGD Policy Blogs
The very first Global Goal on the new UN development agenda, formally adopted earlier this month, is to “end poverty in all its forms everywhere.” On this week’s CGD podcast, economist Montek Singh Ahluwalia, who also serves as Co-Chair of CGD’s new High Level Panel on the Future of Multilateral Development Banks (MDBs), shares his experiences of and hopes for combating poverty in India.
The Asian Infrastructure Investment Bank’s new articles of agreement contain a great deal of information about shareholding and governance in the new institution. However, the articles require some additional analysis in order to answer key questions about voting power and board composition. Based on the information provided, we are able to generate voting shares as well as some preliminary conclusions about the composition of the AIIB’s board of directors.
The Chinese government has published the Asian Infrastructure Investment Bank’s (AIIB) newly adopted articles of agreement. That’s an encouraging early sign of transparency, and more importantly, of timely transparency. Much of what’s in the articles was foreshadowed by previous comments and reporting, but there are surprises, such as stronger-than-expected veto powers for the Chinese and the possibility for non-sovereign membership.
The US failure to approve governance reforms at the IMF is what led China to create the Asian Infrastructure Investment Bank. Ben Bernanke is the latest prominent voice to employ this narrative.
Good news from the Asian Development Bank's annual meetings in Baku, Azerbaijan this past weekend, where shareholders approved a plan to almost double the amount of financing available to developing countries. Bank president Takehiko Nakao's proposal to merge the ADB's concessional and non-concessional lending was nearly two years in the making.
Candidates fielded questions about their priorities for the Bank's future from audience members, participants across Africa, and Twitter.
Jobs and economic opportunies are increasingly at the top of developing nations' agendas. According to CGD senior fellow Ben Leo, China and other emerging market nations are aligning their development tools and activities with these new priorities.
The African Development Bank almost wasn’t. Twenty years ago, the Bank lost its crucial AAA credit rating and its future was very much in doubt. Yet now it is held up as one of the largest sources of infrastructure finance for the region, a multilateral financing institution owned by 53 African and 25 non-regional governments, akin to a regional World Bank.