CGD’s Mikaela Gavas joins Gyude to discuss barriers to private investment in health and infrastructure projects and how a new initiative—an Accelerator Hub—could help local businesses and institutions in Africa develop financially viable proposals and connect them with investors.
CGD Policy Blogs
What impact do development finance institutions (DFIs) like the IFC have on actual development? Today, George Yang and I release a paper that tries to take a sectoral approach to impact: does an IFC electricity investment lead to more power production per capita in a country, or financing provided to local banks lead to a larger proportion of people with a bank account?
For much of the last decade, the World Bank’s private sector arm, the International Finance Corporation (IFC), has delivered a share of its profits as grants to the World Bank Group’s soft lending arm for governments, the International Development Association (IDA). In the last couple of years that pattern has reversed.
Development finance institutions (DFIs) have long resisted the idea that they ought to support coordinated national development strategies in the countries that they invest in, but if conversations around private roundtables at the recent World Bank/IMF meetings are anything to go by, that’s where they may be heading. And if so, it may be the private sector itself that leads them there.
OPIC and CDC are among the largest bilateral development finance institutions (DFIs). They are designed to use their funds to attract more private capital into developing markets through, for example, lending or insuring projects against political risk. CEOs Elizabeth Littlefield and Diana Noble discuss why the DFIs' business model is successful and how their institutions can do more.
This blog was originally posted on March 7, 2011.
Regulators at the Bank for International Settlements (BIS) in Basel, Switzerland, are hard at work designing regulatory standards to avoid future financial meltdowns like the global financial crisis of 2008. Joining them for two months is Liliana Rojas Suarez, a CGD senior fellow and the founding chair of the Latin American Shadow Financial Regulatory Committee.
When Donald Kaberuka became president of the African Development Bank five years ago, he faced daunting tasks, including defining a mission for an institution that many dismissed as irrelevant.