In the 117th Congress, US lawmakers have introduced four separate proposals to establish a national development bank. Three would set up national green finance institutions; the fourth would focus more broadly on providing public financing for high-tech domestic manufacturing, including green technology. (A version of the National Climate Bank proposal—or “Clean Energy Accelerator”—could soon come to the House floor as part of the Democratic budget reconciliation measure).
CGD Policy Blogs
2021 has been a big year for global gender equality advocates, practitioners, and investors. The Generation Equality Forum brought together donor governments, multilateral organizations, philanthropists, activists, and youth leaders to accelerate progress toward Sustainable Development Goal (SDG) 5: “Achieve gender equality and empower all women and girls.” This event, and the commitments made at it, are made even more critical by the backdrop of the COVID-19 crisis, which is exacerbating gender disparities around the world, threatening to dramatically set back progress toward SDG 5.
To help developing countries meet their financing needs, the multilateral development bank (MDB) system needs to get much bigger. Key to a bigger MDB system is a more financially efficient one.
Among the multilateral development banks, the Asian Development Bank (ADB) stands out for its strong financial support for COVID-19 response relative to its overall lending volume. While ADB has proven to be responsive to government’s general financing needs during the crisis, has ADB’s performance matched the specific needs of the governments and populations facing the crisis in the region? Have the greater volumes of support actually targeted the people, places, and sectors that most need it? In a new policy paper, we tackle these questions.
Today, the World Bank and the Center for Global Development (CGD) have published a new report exploring how new mutually beneficial migration partnerships can be built between Nigeria and Europe. In this blog, we outline three roles that multilateral organizations such as the World Bank can play to support such partnerships.
The G7 countries pledged a massive scale-up in support of developing-country financing at their recent summit in the UK. How it will be financed remains an open question. But analyzing trends in recent debt flows by lenders to developing countries, and taking stock of the Debt Service Suspension Initiative (DSSI), can provide some important lessons for the G7’s new ambitions.
The puzzle for development finance experts has been that the capital flows from developed financial markets to developing countries are nowhere large enough to meet financing needs for the Sustainable Development Goals (SDGs), even if official assistance were to be ramped up significantly. Cyclically low investment returns in the developed world should make investment in developing countries quite attractive, yet investments in frontier markets, particularly in Africa, do not begin to meet the development needs of these countries.
You may have missed a recent dry-sounding but groundbreaking report,. It summarizes data from the Global Emerging Markets (GEMs) Risk Database for a set of 11 multilateral development banks (MDBs) and development finance institutions (DFIs) on default rates on their credits to private and sub-sovereign borrowers, which accounted for 82 percent of exposure in 2019.
How have the MDBs responded to the COVID-19 crisis? A CGD note just published assembles data published so far for four of the major MDBs on their financial commitments to governments and the private sector in 2020 compared to 2008-2009 during the Global Financial Crisis. Here we summarize the sobering results.
COVID-19 and the economic crisis it unleashed have spurred unprecedented action from governments and international institutions. Multilateral development banks (MDBs) like the Asian Development Bank (ADB) swiftly committed resources to COVID-19 response and recovery efforts in 2020 and 2021, including a $20 billion countercyclical support facility and a $9 billion facility specifically for COVID-19 vaccine procurement and vaccination program implementation.