You are here
Reforming the MDB System
How can multilateral development banks better leverage existing resources, and act more cohesively as a system? How should they better align allocation with financing needs and the emergence of global problems that require international solutions?
Part of our research on international financial institutions, this work builds on our influential report on the future of multilateral development banking, co-chaired by Lawrence H. Summers, Montek Ahluwahlia, and Andres Velasco.
CGD’s work on reforming the MDBs is part of our program on Sustainable Development Finance.
Related Experts
Related Reforming the MDB System Content
This is a joint post with Benjamin Leo.
A special new lending facility was announced in July 2009 with the objective of providing up to $17 billion in new loans through 2014 and, to entice cash-strapped borrowers, the lender is waiving interest payments for the first two years. This may sound like dangerous new short-term teaser offers for sub-prime borrowers. But this isn’t coming from Countrywide Financial. It actually is a new IMF facility for low-income countries, including some of heavily indebted poor countries (HIPCs) who are just barely coming out of the last debt crisis.
The stated objectives of the new IMF facility are laudable: to offset the effects of the global economic crisis by boosting international reserves and supporting adjustment policies. And yes, the overall terms are more concessional than past IMF loans. Nonetheless, the net impact on national debt levels may be significant. And it was just four years ago that the IMF committed to cancel roughly $6 billion in bad loans to many of these very same countries.
I arrived in Abidjan, Cote d’Ivoire in February, 1994 to begin what was to be an almost 5 year tenure in the Office o
Dennis de Tray and I launched the latest CGD report for new leaders of international agencies on September 7th in Tun
Commentary Menu