Let’s unpack our arguments for why a debt standstill would be the wrong move for IDA at this point in time.
CGD Policy Blogs
Even as the COVID-19 curve begins to flatten in the Northern Hemisphere, the developing world is just starting to feel its onslaught. Just as in the United States, where some of the most effective responses to the global pandemic are generated locally, the success of developing countries will also be determined by the actions of local leaders, citizens, and organizations—including fiscal responses.
DFIs are well positioned to address five pressure points in the COVID-19 response that need financing. Let’s unpack these one by one.
Virtually all countries in the world have responded to the COVID-19 crisis by implementing fiscal and monetary measures, significantly larger in relation to national output than those employed during the 2008 financial crisis. The magnitude of fiscal measures to counter the shock varies across developing and advanced economies.
Think tanks are supposed to float new ideas to make government work better. One such crazy idea that started with Ben Leo and me turned into the US International Development Finance Corporation (DFC). How did this possibly happen? And what might we learn from this experience?
Revisiting HIPC as Part of the COVID-19 Response: How did Commercial Debt Relief for Poorest Countries Work Last Time?
The G20 is calling on commercial creditors to follow their lead and extend a moratorium on their debt. But if past is precedent external commercial debt could be shaping up to be major fault line in the debt relief process moving forward.
The coronavirus is spreading and for the first time in history virtually all people on earth are faced with the same, imminent common threat. With multifold stories of individual suffering and an unprecedented global lockdown, there is an intensifying call for an internationally coordinated response; it is in every country’s interest to think and act globally.
Is the crisis a signal on how devastating the great problems confronting our future could be in a world that is not prepared for them, in particular to face challenges such as major inequalities, the climate emergency, and the loss of nature. The way in which our world produces and consumes, calls for a recovery that would also imply a structural transformation towards a more inclusive and sustainable economic model. DBs could be a great contributor to such a transformation.
A Good Idea Executed Badly: Why the World Bank Should Not Renew the Pandemic Emergency Facility Insurance Window
As the coronavirus spreads across the globe and claims an increasing number of victims, calls have been made for the international community to raise and disburse huge sums of money to protect poorer countries, whose poverty and weak health systems make them especially vulnerable.
In a new working paper, we aim to address this gap with a new measure of cross-border, concessional finance—Finance for International Development (FID). FID is designed to be a measure which is more consistent across all development actors—going beyond just OECD members.