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CGD Policy Blogs

 

FY2016 Omnibus – Naughty or Nice?

While you might not know it from the weather, there’s at least one sure sign it’s December in DC. No, we’re not referring to the oversized and ornamented evergreens on the Capitol and White House lawns, but to the recent mad dash by Congress to wrap up remaining legislative business before the end of session. Despite a year marked by bitter partisanship, Congress managed to arrive at an agreement to fund the federal government through the rest of FY2016.

For the IMF Package in the Omnibus Budget, a Sigh of Relief — and a Warning for the Future

Congress finally gave the administration what it has been asking for on IMF quota reform, and then some. At the same time, Congress didn’t just give the administration the ability to go forward on governance reform that gives more voting power to rising developing countries.  It also included some potentially consequential conditions on its approval. Here we see risks going forward that are manageable but will require some skillful navigation by the next administration.  

Four Challenges for Blended Finance and Development Finance Institutions

Overseas development assistance amounts to about $135 billion dollars annually, but the cost of paying for the Sustainable Development Goals will be in the trillions. As a result, blended finance is something of a buzz phrase these days. I left a workshop on blended finance last week in Paris excited about the potential of these new structures and instruments to deliver social returns. But I was also struck by the challenges DFIs and their advocates must overcome in order to fully realize that potential. 

Congress Talks MDBs

It was a beautiful, barely-fall Friday in Washington, which made it all the more impressive that twelve members dropped in on a morning House Financial Services Subcommittee hearing on the multilateral development banks (MDBs).

Pretending at Evidence-Based Policymaking?

The Millennium Challenge Corporation is a model aid agency in a lot of ways, one of which is its commitment to learning from experience and evidence on what works and what doesn’t when it comes to development programs. Despite that, it still has an egregiously flawed way to deal with the risk of corruption. The MCC takes a slippery and poorly measured concept and puts it to the most blunt of zero tolerance tests: if a country is below the median in its income group on the Worldwide Governance Indicators measure of control of corruption, it doesn’t get a compact.

Can the Private Sector Deliver on the Infrastructure SDGs?

In two weeks, a teaming mass of world leaders are going to descend on New York to sign up to the Sustainable Development Goals. Among the targets to be met by 2030 are global universal access to water, sanitation, reliable modern energy, and communications technologies. Back-of-the-envelope calculations suggest that meeting these infrastructure targets would involve a trillion or more dollars in additional infrastructure investment in developing countries every year. That begs the question: where is the money going to come from?

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