In recent years, many commentators have asked if the World Bank is still relevant. We’re about to find out. To track the World Bank’s response to COVID-19, we’ve built a small interactive tool to display how much each country has received to date, and what’s currently in the pipeline for approval.
CGD Policy Blogs
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.
Calling All Official Bilateral Creditors to Poor Countries: Switch to IDA Concessional Terms as Part of COVID-19 Response
Overall public debt in IDA countries has risen rapidly since before the global financial crisis; and while debt to private creditors (mostly in the form of bonds or bank loans) has increased, the biggest increases have come from multilateral and official bilateral credits.
As part of their efforts to contain the economic, social, and political fallout from the COVID-19 crisis, many African countries have announced large fiscal stimulus packages. But planned fiscal responses will need to be crafted with caution to be most effective.
COVID-19 has become the biggest stress test in decades for international cooperation. Will donors be able to deliver effective, sustainable development for the world’s poor while also scrambling to support health systems cope with this crisis?
We are so accustomed to the Chinese government’s lack of transparency that the opaqueness of China’s overseas loans seems unremarkable at this point. But as we face what inevitably looks like a global debt crisis, one that is likely to hit low-income countries particularly hard, a clear accounting of the scale of the problem is critical.
This is a crisis of truly global scale and it will place enormous constraints on traditional humanitarian operations.
The COVID-19 response amounts to a significant expansion in the scale and scope of direct cash transfers as well as other social assistance—a huge increase in government-to-people (G2P) payments. As we explain in our new report, delivering on these programs will require an enormous increase in the capacity of states to implement them.
While the vast majority of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed into law late last week is devoted to domestic response and relief, the measure does include modest supplemental foreign aid funding and pending authorizations for international financial institutions to support the international response. These provisions, combined with the foreign aid funding provided as part of the initial supplemental legislation, are important.