“IFC 3.0” is a welcome and important initiative for a development finance institution that in the past has been accused of putting profits before impact. But the IDA PSW instrument is a throwback to the old IFC—opaque as well as inefficiently targeted on development results. Designing “PSW 2.0” should be an urgent priority at the IDA 18 Mid-Term Review in November.
CGD Policy Blogs
A quarter-century after the empirical growth literature set out to explain why poor countries aren’t catching up with rich ones, cross-country regressions have mercifully gone out of fashion. But in the interim, the core facts have changed.
The formidable challenge of financing the Sustainable Development Goals has focused attention on the role of private capital in filling huge finance gaps. But for low-income countries (LICs), which receive only about 5 percent of total cross-border private capital flows to developing countries, there is little confidence that external private capital will make a significant contribution.
Last week, the agency came out with its first major, visible Journey to Self-Reliance product—a series of country “roadmaps” that use 17 indicators to plot low- and middle-income countries’ “commitment” to and “capacity” for self-reliance.
The Women, Business and the Law program at the World Bank has done a wonderful job of cataloguing the thousands of legal restrictions worldwide that constrain women’s abilities to be equal participants in the economy—from legislation mandating women ask a male family member for permission before opening a bank account through rules banning women from certain jobs to unequal property rights. Pairing that data with surveyed outcomes would make it an even more powerful tool.
The IDFC represents a unique mix of bilateral agencies, national development banks, and regional development banks. As such, it holds promise for bringing new and productive collaborations to the SDG agenda that extend well beyond the work of the major multilateral development institutions. In a new brief, our efforts to map the scale and scope of IDFC members’ development financing through a membership survey and public databases provide some interesting takeaways:
When the finance ministers of the G20 countries set up an Eminent Persons Group 18 months ago, many observers were both hopeful and skeptical about the likely outcome. Now that the EPG’s report is out, what’s the verdict on how transformative its efforts will be?
This year’s Nobel Peace Prize, awarded last week to Denis Mukwege and Nadia Murad, calls attention to sexual violence during war and civil conflicts—a horror too often unstated and wished away. There’s another largely hidden horror the world needs to reckon with: the toll that civil conflicts, some so local that they rarely make the news, takes on children.
Government contracts are worth trillions of dollars. Publishing contracting information is critical to enabling fair competition, allowing public scrutiny, and reducing opportunities for corruption. But when is it legitimate to redact commercially sensitive information from these documents?
Aid and development transparency has come a long way in ten years. In this, the first of a two-part blog series, we look back at the origins of the aid transparency movement. We reflect on the original vision of those who conceived the idea, and the journey to date including some of the successes achieved along the way.