Policies put in place to counter financial crimes have unfortunately had a chilling effect on banks’ willingness to do business in markets perceived to be risky—due in part to the high price of compliance. Even as changes are being made to address this problem, financial institutions are developing solutions in the form of new cutting-edge technologies to help them comply better and faster with anti-money laundering regulations.
CGD Policy Blogs
For the policymaker looking to improve services and the delivery of benefits, or for the financial institution trying to expand its customer base, the gap between technical solutions and the situation of the average technology user represents fertile ground for the many new opportunities that the digital economy provides.
Digital identification has become a focus for development policies and programs, and not a moment too soon. Identification Revolution: Can Digital ID be Harnessed for Development considers where these trends are heading.
How well do your country's policies make a positive difference for people in developing nations? That’s the question CGD seeks to answer each year in our Commitment to Development Index (CDI). The team behind the CDI, deputy director of CGD Europe Ian Mitchell and policy analyst Anita Käppeli, join me to discuss why these rankings matter, how countries stack up, and how their scores may be impacted by the shifting political environment.
Today, we published this year’s Commitment to Development Index (CDI), which ranks 27 of the world’s richest countries in how well their policies help to spread global prosperity to the developing world.
A year ago, I requested comments on a draft manuscript about corruption. Last week, we launched the resulting book: Results Not Receipts: Counting the Right Things in Aid and Corruption. I think the text was considerably improved by the comments process (and I hope the commenters agree). So I’m hoping the discussion can continue even though the book is now out.
Each year, as ministers gather from all corners of the world for the World Bank/IMF Spring Meetings, Washington DC resounds with a cacophony of differing perspectives on future prospects, like a giant, multinational orchestra tuning up. Yet this time, in both public and private gatherings, with both developed and developing country dignitaries, as well as leading technocrats from the international financial institutions, one refrain kept recurring, defining the mood of the whole symphony. I would summarize it as 'The numbers are looking better, so why don't I feel good about them?'
Cost-effectiveness analysis (CEA) can help countries attain and sustain universal health coverage (UHC), as long as it is context-specific and considered within deliberative processes at the country level. Institutionalising robust deliberative processes requires significant time and resources, however, and countries often begin by demanding evidence (including local CEA evidence as well as evidence about local values), whilst striving to strengthen the governance structures and technical capacities with which to generate, consider and act on such evidence. In low- and middle-income countries (LMICs), such capacities could be developed initially around a small technical unit in the health ministry or health insurer. The role of networks, development partners, and global norm setting organisations is crucial in supporting the necessary capacities.
One of the questions reportedly from the Presidential transition team to the State Department was: “With so much corruption in Africa, how much of our funding is stolen?” During the nomination hearings for Rex Tillerson to be Secretary of State, Senator Rand Paul provided one answer: seventy percent of aid is “stolen off the top.” The question is a fair one to ask. The bad news is that the short answer is “we don’t know.” The better news is that the slightly longer answer is “nowhere near 70 percent.” And the best news is that if we spent more time tracking the results of aid projects, we’d have a much better idea of where corruption was a problem and if our efforts to reduce it were working.