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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

A meeting of the CGD working group on government contract transparency

From Open Oil to Open Everything? The 7 C’s of Using Open Models for Contract Negotiation

When companies and governments sit down to negotiate the terms for major deals with the private sector, workhorse spreadsheet models are what underpin projections of revenues, costs, and profits over time. Both companies and government agencies should have their own models. But in practice, on the government side, there is often no model at all. And even where there is, they are poorly understood, narrowly shared, and rarely if ever updated, leaving the public completely in the dark about how public assets and deals are managed.

The Response to De-Risking: Progress Made, Some Challenges Remain

In November 2015, CGD published a report titled Unintended Consequences of Anti–Money Laundering Policies for Poor Countries. Today we release a follow-up to that report. Policy Responses to De-risking: Progress Report on the CGD Working Group’s 2015 Recommendations takes stock of accomplishments to date, notes where work remains, and recommends concrete actions for international institutions, governments, banks, and others to continue addressing de-risking.

The Proposed SDG Indicator on Illicit Financial Flows Risks Conflating Ordinary Business and Dirty Money

“Illicit financial flows” means dirty money crossing borders. It is an umbrella term which covers diverse actors including organised crime groups, business people making bribes, political leaders engaging in grand corruption, and major tax evaders hiding undeclared wealth. What they all have in common is that what they are doing is illegal (although they may be getting away with it), and they often use opaque international networks of legal entities, bank accounts, and property holdings to facilitate and store ill-gotten gains. There is a clear development case for rich countries to act to prevent their financial systems being used as havens for illicit financial flows that harm developing countries.

Fighting Corruption is Dangerous, but Necessary

CGD and Brookings recently co-hosted Former Finance Minister of Nigeria and Distinguished Fellow Ngozi Okonjo-Iweala to discuss her new bookFighting Corruption is Dangerous: The Story Behind the Headlines. The book is part memoir, part how-to, as she draws on her years of experience as Nigeria’s Finance Minister to describe the dangers of fighting corruption and how best to do it. I drew four main takeaways from our conversation.

Pinning Down Illicit Financial Flows: Why Definitions Matter

The SDGs include a target to “significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organised crime”. However, there is no globally agreed upon definition for “illicit financial flows.” My new CGD paper looks at why there is so much disagreement and confusion over this term.

It’s Time for a Code of Conduct on Transparency for Financiers Backing PPPs

Public-Private Partnership models continue to proliferate, backed by multilateral development banks old and new. But the volume of PPPs in developing countries has stagnated since the global financial crisis, and they won’t deliver unless they are designed and implemented well. Making more and better public-private investments will take a far greater commitment to transparency from participants in the deals. Financiers—MDBs in particular—should take the lead.

Seven Ways the International Community Can Help Zimbabwe through Tough Times

Events are in tremendous flux in Zimbabwe after the non-coup committed by the military last week and the resignation of President Robert Mugabe on November 21. It’s not too early for the international community to start considering constructive steps to help the country get through the inevitable transition and back on a path to democracy and prosperity.

How Big Is the Transfer Pricing Prize for Development?

It is often stated that developing countries are “haemorrhaging billions of dollars” of tax revenues through companies abusing transfer pricing, in particular by mispricing commodities.There is no doubt that companies can take advantage of weak regulations and enforcement, but new studies based on microdata from revenue authorities suggest the scale of revenues that might be recovered is unlikely to match up to heightened popular expectations.

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