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CGD Policy Blogs

 

Panoramic view of Bogota, Colombia

The Interdependence Between Multilateral Development Banks and Middle-Income Countries

Every MDB is now confronted with the question of what to do with middle-income countries, given the need to focus on the Sustainable Development Goals in general, but very concretely on goal #1—poverty eradication—which will be difficult to achieve based on recent trends. MDBs are very important for MICs, but at the same time MICs are vital for MDBs. This is essentially a two-way relationship. Without MICs, MDBs will be less innovative, will have less knowledge and, importantly, will require more capital from shareholders. I will explain why I believe so in this short note.

The exterior of UN plaza

Financing Development: A “Common but Differentiated” Path to 0.7%

Ministers are gathering at the UN this week to discuss the financing needs to meet the Global Goals—with the challenge that resources will clearly fall short, not least because most high-income countries are still failing to meet their financial commitments. We reviewed the pathways taken by the countries that agreed to the UN 0.7 percent target on overseas development assistance as a share of national income, and find that—perhaps unsurprisingly—aid as a share of the economy rises with per capita income.

Achieving the SDGs Will Require More than Revenue Increases

How much progress is made in achieving the Sustainable Development Goals (SDGs) is likely to depend crucially on resources low and lower-middle income countries (LIC/LMICs) can mobilize domestically. This is because the financing needed to achieve the SDGs is large.