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.
CGD Policy Blogs
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.
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.
The elephants in the room at the annual International Monetary Fund/World Bank meeting in Lima, Peru, were the China-inspired Asian Infrastructure Investment Bank (AIIB) and New Development Bank (or “BRICS Development Bank,” as it was originally called). The reality is that over the next decade, these new institutions will not be huge lenders.
The very first Global Goal on the new UN development agenda, formally adopted earlier this month, is to “end poverty in all its forms everywhere.” On this week’s CGD podcast, economist Montek Singh Ahluwalia, who also serves as Co-Chair of CGD’s new High Level Panel on the Future of Multilateral Development Banks (MDBs), shares his experiences of and hopes for combating poverty in India.
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.
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?