From Commitment to Delivery: Catalyzing Resources for Development
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From Commitment to Delivery: Catalyzing Resources for Development
- 1. FROM COMMITMENT TO DELIVERY Catalyzing Resources for Development
- 2. FROM COMMITMENT TO DELIVERY PRESENTATION OUTLINE Overview of global context, including 2030 Agenda Note global trends affecting implementation of the 2030 Agenda Financing for Development Discuss how WBG can maintain institutional focus and action for 2030 commitments 1
- 3. 2 LOOKING BACK: THE MDG ERA 71 35 40 67 38 34 15 67 36 11 8 12 10 18 4 3 5 7 7 4 11 7 16 18 11 2 7 2 13 17 11 37 33 20 12 14 27 52 40 28 34 54 88 40 58 27 33 25 22 2 2 8 19 23 MDG Progress, by number of countries Target Met Sufficient Progress (by 2015) Insufficient Progress (2015-2020) Moderately off target (2020-2030) Seriously Off Target (after 2030) Insufficient Data MDG 1.1: Poverty MDG 1.9: Malnourishment MDG 2.2: Primary Completion MDG 3.1: Gender Parity MDG 4.1: Under-5 Mortality MDG 4.2: Infant Mortality MDG 5.1: Maternal Mortality MDG 7.8: Water MDG 7.9: Sanitation
- 4. 3 GLOBAL FRAMEWORKS FOR DEVELOPMENT: FROM MDGS TO SDGS The global development agendas serve as a compass and guide for countries to determine their national development path MDGs (2000-2015) SDGs (2016-2030) Goals 8 17 Targets 21 169 Indicators 60 ~231 Priority Areas Human Development Holistic: Economic, Social, Environmental Scope Developing Countries Universal
- 6. 5 BUILDING ON THE MDGs FOR THE 2030 AGENDA Experience with the MDGs highlighted the importance of three critical pillars*: IMPLEMENTATIONDATA FINANCING Ref: WBG/UN report to the UN CEB on the Lessons Learned from the MDGs; Development Committee Lima paper on WBG’s role on SDGs Ref: Spring Meetings 2015 Development Committee paper on Financing; Addis 2015 outcome document Ref: UN report on “A World that Counts”; WBG/MDBs/UN MoU on Data WBG action on the SDGs has been articulated along these three focus areas * Joint Letter from MDB Heads, 2013
- 7. 6 GLOBAL CONTEXT Unprecedented challenges •Slowdown in global growth •Climate change •Crises and pandemics •Infrastructure finance gap •End of super cycle on commodities Heightened global ambitions •Sustainable Development Goals •COP21 Agreement •Sendai Framework Commitments to scale up •Addis Ababa Action Agenda/Financing for Development – “Billions to Trillions” •MIGA/IFC/IBRD-IDA integrated approaches in country and sector strategies, especially infrastructure WBG Forward Look •A better and stronger Bank able to respond to challenges at the country and regional levels, by: •Providing crisis response mechanisms •Delivering global public goods •Mobilizing additional resources
- 8. 7 GDP Growth (Percent) Source: World Bank, June 2016. GLOBAL ECONOMY: MUDDLING THROUGH… -4 0 4 8 12 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 World Advanced Economies Emerging and Developing Economies
- 9. Current forecast Change from January 2016 2014 2015 2016 2017 2016 2017 World 2.6 2.4 2.5 2.9 -0.4 -0.2 Advanced economies 1.7 1.8 1.9 2.0 -0.3 -0.1 Emerging and developing economies 4.2 3.4 3.5 4.4 -0.6 -0.3 East Asia and Pacific 6.8 6.5 6.3 6.2 0.0 0.0 Europe and Central Asia 1.8 -0.1 0.8 2.4 -0.8 -0.2 Latin America and Caribbean 1.0 -0.8 -1.3 1.3 -1.3 -0.8 Middle East and North Africa 2.3 2.5 3.1 3.9 -0.7 -0.5 South Asia 6.8 7.0 7.1 7.3 -0.2 -0.2 Sub-Saharan Africa 4.5 3.0 3.3 4.3 -0.9 -0.3 GDP Growth (Percent) Source: World Bank, June 2016. Global and Regional Forecasts: Revised Down 8
- 10. 9 Conflicts Lack of financing Lack of capacity Clim. change Lack data Enviro nment Viol- ence Climate change Lack of fin Lack data Lack capa -city Lack of capacity Climate change Lack of financing Conflicts Violence/ extremism Environ- ment Lack of capacity Climate change Lack of data Conf- licts CC Lack capa -city Climate change Trade restric- tions Pop. displa- cement Conflicts violence Lack data Lack fin. FINANCING, CONFLICTS, CLIMATE CHANGE, DATA ARE THE MOST FREQUENTLY IDENTIFIED CHALLENGES
- 11. CRITICAL COMPONENTS OF FINANCING FOR DEVELOPMENT 1. National public resources: Improving domestic resource mobilization (DRM) 2. Global public resources: Better and smarter aid 3. National and global private resources: Unlocking private investment for development, Attracting FDI, Remittances, Philanthropic finance • The World Economic Forum estimated that annual demand for infrastructure finance alone is $3.7 trillion. With annual investment currently around $2.7 trillion, this leaves a gap of $1 trillion per year. • According to the Global Commission on the Economy and Climate, incorporating climate considerations raises the financing gap even further, to $2-3 trillion per year.
- 12. 11 1. DOMESTIC RESOURCES ARE THE LARGEST RESOURCE AVAILABLE FOR DEVELOPMENT • A country’s ability to mobilize domestic resources (DRM) and spend them effectively – at the national, sub- national and municipal levels –lies at the crux of financing for development. • Strengthening the capacity of local governments, including to raise their own revenues, to manage expenditures and service delivery, and to borrow and manage debt prudently is critical; • Developing inter-government fiscal transfer arrangements that consider the needs of sub-national governments and equalize fiscal capacity and expenditure is also critical 0 0.05 0.1 0.15 0.2 0.25 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Median tax revenue as a percent of GDP by Income grouping, 1990-2014 (Tax/ GDP Ratio) High income Upper middle income Lower middle income Low income
- 13. 12 2. OFFICIAL DEVELOPMENT ASSISTANCE 0 200000 400000 600000 800000 1000000 1200000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Developing countries' total resource receipts ODA Non-ODA Personal remittances ODA: Official Development Assistance. ODA in the chart includes bilateral ODA and multilateral concessional flows. Non-ODA flows include: other official developmental flows, officially-supported export credits, FDI, other private flows at market terms and private grants. Adjusted gross disbursements, three-year moving average, USD million, 2012 constant prices. Sources. Remittances, World Bank. Other resource flows, DAC statistics. NB: Data on flows to MADCTs are only available up to 2010. As development challenges at the global and national levels increase, so too should the resource envelope available to meet these needs….ODA flows are simply not enough.
- 14. 13 3. MOBILIZING PRIVATE RESOURCES FOR DEVELOPMENT As development challenges at the global and national levels increase, so too should the resource envelope available to meet these needs…. • Aggregate assets held by ten largest MDBs: $1.3 trillion • Making the “Billions to Trillions” pledge a reality requires expanding the pool of development capital beyond the multilateral development banks (MDBs) and official agencies. • Private funds: o $2 trillion of assets held by the world’s ten largest pension funds o $4.5 trillion of assets held by the world’s ten largest insurance companies o $5 trillion in assets held by the world’s ten largest sovereign wealth funds o $100 trillion global bond market • The global community looks to the World Bank Group to lead on the “Billions to Trillions” initiative - a call to greatly increase the financial capacity that can be deployed to meet the Sustainable Development Goals.
- 15. 14 1,2 Data as of June 30’ 2014 THE FINANCING FOR DEVELOPMENT AGENDA The need to mobilize new resources is further emphasized by the Financing for Development (FFD) agenda, as part of the joint UN-MDB “Billions to Trillions (B2T)” effort. • The IMF and MDBs (AfDB, AsDB, EBRD, EIB, IaDB and WBG) presented a joint vision, “Billions to Trillions (B2T)”, at the Third international Conference on Financing for Development held in Addis Ababa on July 13-16, 2015. • Emphasized the need to use the billions of dollars generated in ODA to unleash trillions in private, public, international and domestic finance to fund the 2030 Development Agenda. • The MDBs reaffirmed their role as the main engines of development finance— “we not only provide direct financial assistance, but also mobilize, catalyze, and crowd-in public and private sources of development finance”.
- 16. 15 1,2 Data as of June 30’ 2014 MDB LEVERAGING AND MOBILIZING MODEL
- 17. 16 THE WORLD BANK GROUP
- 18. 17 WBG INSTRUMENTS The WBG has a spectrum of instruments spanning the public-private sectors to help mobilize capital. IBRD/IDA IFC MIGA Public Projects PPP/Private Sector Projects Private Projects* • Loans, Credits, Grants • Loan Guarantees • Payment Guarantees for Cross-Border Projects • Loan to sub-sovereign, public, creditworthy entities • Non Honoring of Sovereign Financial Obligation (NHSFO) • Non Honoring of Sub- Sovereign Financial Obligations • Non Honoring of SOE Obligations • Advisory Services: Investment Environment • Advisory Services: • Investment Environment • Project Structuring • Political Risk Insurance • Transfer restriction and inconvertibility • Expropriation • Breach of Contract • War and Civil Disturbance • Loan Guarantees • Payment Guarantees • Loans/Credits for Govt. Contributions to a PPP project • IFC A and B Loans • Equity • Credit Guarantee for Private Sponsors • MCPP • IFC A Loan • Equity • Credit Guarantee for Private Sponsors • Political Risk Insurance (PRI) * No government contribution or intervention
- 19. 18 WBG RESOURCES FOR DEVELOPMENT …And the World Bank Group has continually adapted its product portfolio to meet global challenges. 1980s 1990s 2000s 2010s GTLP & crisis Initiatives Trade finance Green bonds Financing Structural Adjustment: First Generation Reforms Development Policy Financing: 1st & 2nd Gen Reforms Deferred Drawdown Option Guarantees Debt Relief Program for Results Financing Investment Project Financing (IPF) : Responding to Fragile Situations Guarantees: Integrated with IPF and DPF; greater access for IDA clients Disaster risk management products (Meteorological & geological events) Pandemic Emergency Facility First local currency bond Parallel loan syndication Board endorsement blended finance principles AMC Focused Industry knowledge/finance MSME support MCPPFirst global Investment Vehicle for emerging markets Swaps against macro shock (housing) Single Currency Loans (SCL) – variable spread Single Currency Pool Loans (SCP) Hedging products Local currency financing Derivatives/ risk management instruments (2009) Deferred Draw Down Option for Catastrophe Risk (CAT DDO) MIGA is first MDB created to issue guarantees to leverage private investors and reinsurers ‘Small Investment Program’ Non-honoring of Sovereign Financial Obligations CAFEF established Non-honoring of Financial Obligations by a State- Owned Enterprise Innovation in product applications, e.g. capital market support Coverage to stand- alone debt approved Trust Funds for FCS added for Bosnia- Herzegovina, Afghanistan, and West Bank & Gaza
- 20. 19 WBG MOBILIZING AGENDA –AREAS OF FOCUS Increased Financial Leverage IBRDs increase in financial leverage through expenditure review MDB exposure exchange swaps IDA's recent triple-A credit ratings is a first step to enable capital market access, enabling it to provide clients with billions of dollars in additional resources Innovative Approaches to Support Public Goods Creation of a Pandemic Emergency Facility (PEF) Enhanced role in climate finance Mobilization of Private Capital to invest in developing countries IFCs Asset Management Company (AMC) and Managed Co-lending Portfolio Program (MCPP) Global Infrastructure Facility Convening platform for public and private sectors, at global, regional and national level Innovative partnerships for leverage – MENA Concessional Facility, Global Crisis Response Platform Development Finance Forum – annual gathering of influencers in private and public sectors, incubating approaches to scale up Increased Domestic Resource Mobilization Joint IMF-WBG Tax Initiative to build in- country domestic resource mobilization capacity (led by GGODR and launched during the Lima Annual Meetings) Intensified Knowledge work (e.g. Colombia’s Building Local Currency Bond Markets to Finance Infrastructure; ) Intensified work on Illicit Financial Flows
- 21. 20 IDA: WORLD BANK GROUP FUND FOR THE POOREST • IDA is one of the largest sources of assistance for the world’s 77 poorest countries, 39 of which are in Africa, and is the single largest source of donor funds for basic social services in these countries. • IDA lends money on concessional terms. • This means that IDA credits have a zero or very low interest charge and repayments are stretched over 25 to 40 years, including a 5- to 10-year grace period. • IDA also provides grants to countries at risk of debt distress.
- 22. 21 1,2 Data as of June 30’ 2014 IDA MARKET ACCESS AND LEVERAGING Recent innovations in WBG instruments will further enhance the capacity of the institution to mobilize funds for development… IDA18 is leveraging its equity by accessing the market to scale-up lending operations to IDA countries • Through the leveraged IDA model, the WBG aims to provide financing most suited to client needs in a financially efficient and prudent manner, by blending donor contributions with funds raised through debt markets. • We aim to dramatically increase the efficiency of donor contributions: for every dollar raised from donors, we plan to generate 3 dollars of commitment authority for IDA18 and beyond, relative to 2 dollars in IDA17.
- 23. 22 1,2 IDA’S PRIVATE SECTOR WINDOW Objective: Unlock significant opportunities to mobilize private capital, and help scale up the growth of a sustainable and responsible private sector in IDA countries. • Set aside US$2.5 billion ($2bn for IFC and $500mn for MIGA) • Aims to leverage the strengths and expertise of each of these entities of the WBG to deliver higher development impact in IDA (and especially FCS countries) • Builds on the scope and impact of IFC and MIGA’s opportunity-driven business models and networks of private sector clients, partners and reinsurers • Potential instruments are designed to target significant barriers to private sector development.
- 24. 23 IFC: PRIVATE SECTOR ARM OF THE WORLD BANK GROUP • IFC was founded on the idea that the private sector is essential to development. It reaches millions of people in more than 100 countries in support of the World Bank Group's two goals: ending extreme poverty and boosting shared prosperity. • Clients view IFC as a provider and mobilizer of private capital, knowledge, and long-term partnerships that can help address critical constraints in areas such as finance, infrastructure, employee skills, and the regulatory environment.
- 25. 24 1,2 Data as of June 30’ 2014 IFC’S ASSET MANAGEMENT COMPANY Formed in 2009, AMC is IFC’s fund management business, managing third-party capital across eleven funds that invest in IFC transactions in developing countries. US$6.7 billion has been raised from 42 investors since its inception. $2,000mn $2,855mn $2,945mn $3,338mn $4,603mn $5,824mn $6,700mn
- 26. 25 CREATING MARKETS IS A WBG AGENDA: EACH STEPPING UP, ALL CREATING IMPACT TOGETHER • “IFC 3.0”: A change in business model: from leveraging markets to creating markets • Going upstream and working to create bankable projects • Clear asks of Bank: specific areas where de-risking needed • New mobilization mechanisms, broader institutional and other investor networks • Institutional enablers • Aligned incentives: To focus on enabling private solutions to public issues • Budget allocation: To support Bank de-risking activities • Engagement mechanisms: To process sourcing, analytics, ex ante development impact assessment, implementation • New capabilities: Financial and technical
- 27. THE NEXT TWO SLIDES ARE EXAMPLES OF HOW TO CREATE A MARKET BUT WE THINK THEY ARE TOO DETAILED – CONSIDER THEM OPTIONAL
- 28. EXAMPLE OF CREATING MARKETS: Market Making Structure for Electricity Provision in IDA / FCS: Nigeria 27 Key Features 1 ▪ Institutional reform – stronger independent regulator, gas aggregation company, single buyer ▪ Asset privatization – 5 Generation Companies and 10 Distribution Companies have been privatized ▪ Increased private sector participation – 14 IPPs vetted by FGN and nominated for WBG PRG program; Transmission Company of Nigeria under private Management Contract (Manitoba Hydro) ▪ Gas sector Master Plan –pricing policy for the domestic market to incentivize private investments & development of a gas infrastructure blueprint ▪ Cost-reflective electricity retail tariffs – ensures sustainability of entire value chain (gas supply, generation, transmission and distribution) Very Ambitious Objectives 2 ▪ Gas – enhance gas processing and transmission infrastructure key for gas-to-power IPPs ▪ Generation – target installed capacity of 40,000 MW by 2020 vs. c.4,000 MW at present -> 10x increase in power supply ▪ Transmission and Distribution – strengthening of transmission backbone and distribution networks ▪ Access – long term target of 75% electrification by 2025 Good momentum though challenges remain 3 ▪ Sustained FGN momentum & a round of privatization completed ▪ Clear FGN financial commitment (US$ 9 billion pledged including proceeds from asset privatizations) ▪ Market perception of irreversibility of reforms; however, periodic hiccups (e.g. tariff re-set for privatized distribution companies post hand-over delayed now for several months; interim stop-gap measures in place). ▪ Greater institutional leadership (NERC, single buyer) though track record yet to be established ▪ Private sector interest increasing, but mostly local vs. established developers ▪ Transmission constraints and gas supply & infrastructure remain major challenges to sector sustainability Nigeria launched a Roadmap for Power Sector Reform in 2010:
- 29. 2 8 Azura-Edo Nigeria IPP; Total project cost: ~US$880 million, financed with 72.5% senior debt, 7.5% mezzanine debt and 20% equity. 459 MW, open-cycle gas-fired power generation plant. The Project is the first phase of a 1000MW open-cycle plant. WBGSupport • A partial risk guarantee backing NBET’s payment obligations under the PPA – i.e. the PPA PRG (up to US$120 million) • A commercial debt mobilization guarantee for a group of international commercial lenders – i.e. the Debt PRG (up to US$125 million). Ultimate risk taken: Federal Government of Nigeria risk • IFC co-arranging DFI tranche of up to US$250 million • IFC ‘A’ Loan of up to US$125 million • IFC ‘C’ Loan of up to US$30 million • IFC hedge instruments representing a loan equivalent exposure of up to US$10 million Ultimate risk taken: The Project (Commercial risk) • MIGA Guarantee to Azura-Edo Limited (shareholders) • MIGA Guarantee to a group of commercial lenders and hedge providers (combined total of up to $660 million) Ultimate risk taken: The Project’s shareholders and lenders (Non Commercial risk) 16 Result: Nigeria’s first Independent Power Producer, opening a crucial market for others
- 30. 29 MIGA: POLITICAL RISK INSURANCE • MIGA provides political risk insurance guarantees to private sector investors and lenders. MIGA’s guarantees protect investments against-non- commercial risks and can help investors obtain access to funding sources with improved financial terms and conditions. • Since it’s inception in 1988, MIGA has issued more than $28 billion in political risk insurance for project in a wide variety of sectors, covering all regions of the world.
- 31. 30 OVERVIEW OF WBG GUARANTEE PRODUCTS Mobilizes private sector financing in situations where obligations typically fall under the control of government Mobilizes private sector (investors, lenders, reinsurers) by providing guarantees for noncommercial risks. IFC provides credit guarantees for private sector participants as their primary clients. WB G
- 32. EXAMPLE OF WORLD BANK GUARANTEE: SANKOFA GAS PROJECT • Transformational project : First deep-water natural gas project to address THE country’s energy shortages for domestic power generation in Sub-Saharan Africa and largest foreign direct investment for Ghana ever: $7.9bn investment for domestic market. • Exploration and commercialization of the gas will be carried out by two private investors, in close partnership with Ghana’s National Petroleum Corporation, (GNPC). • Unique combination of IBRD and IDA guarantees. This innovative mix for a total of $700 million will help mobilize $7.9 billion by the private sector. • IFC and MIGA also support the project. IFC is expected to mobilize more than $1 billion ($300 million from IFC) for the project. • MIGA is expected to provide a $350 million Political Risk Insurance to Vitol. IDA payment guarantee ($500 million) Guarantee covering the risks of non- payment by GNPC of its payment obligations under the Gas Sales Agreement. IBRD enclave loan guarantee ($200 million) Supporting project financing for the private sector by covering debt service defaults, as a result of breach of specified contractual obligations by GNPC and the Government of Ghana. Ghana P152670
- 33. 32 WBG INVESTMENTS IN GLOBAL PUBLIC GOODS The WBG is embracing innovative financing structures to tackle new gLobal challenges. Pandemic Emergency Financing Facility (PEF) Global Concessional Financing Facility Climate Finance Will leverage $500m from the insurance and capital markets to finance response efforts to address health outbreaks before they take on pandemic potential The GCFF provides development support on concessional terms to middle-income countries impacted by refugee crises across the world. Each $1 in grant contributions leverages about $4 in concessional financing for middle income countries Through the Climate Change Action Plan cross-WBG "deal teams" are focusing on delivering bankable/investable projects in clean energy, including through blended concessional finance, with the aim to mobilize $25 billion dollars of commercial funding for clean energy over the next five years.
- 34. 33 THE GLOBAL INFRASTRUCTURE FACILITY Facility Objectives These potential facilities and mechanisms will require further due diligence and evaluation. GIF Counterparty Risk Cover for SOEs Facility (w/o counter indemnity) to cover payment risk of non- credit worthy sub sovereign entities. Capital Market Catalytic Fund to improve the rating of project bonds so as to mobilize broader institutional investors. Regulatory Risk Cover Facility to provide liquidity support to cover payment shortfall due to adverse regulatory changes, primarily for renewable energy projects. Contingent Refinancing Facility to enable commercial banks (local and International) to extend the tenor of their loans thereby expanding the banking market for infrastructure finance. Project Credit Enhancement Private Sector Co-Financing Short-Term Financing Mobilization fund designed to crowd-in financing from multiple sources (equity, debt, grants, guarantees, etc.) by addressing the risk constraints and investment objectives of various counterparties (borrowers, donors, investors), leveraging resources and filling WBG product gaps. Construction Loan Facility to provide financing for the construction phase of infrastructure projects that have strong revenue-generating potential, and which can be refinanced through long-term investors, helping recycle capital at a faster rate than through traditional IBRD loans.
- 35. THANK YOU Last updated: December 2, 2016
Editor's Notes
- #3: Our objectives for this presentation today are (read or summarize objectives).
- #4: Estimates for the developing world indicate that the targets for extreme poverty reduction (MDG 1.a), access to safe drinking water (MDG 7.c) and improving the lives of at least 100 million slum dwellers (MDG 7.d) have been reached ahead of the 2015 deadline (figure 1). The targets on gender equality in primary and secondary education (MDG 3.a) and the incidence of malaria (MDG 6.c) can be met by 2015. Note that gender disparity in primary education was met in 2010. On the other hand, progress on the remaining MDGs has been lagging, especially for education and health-related MDGs. Specifically, the primary school completion rate reached 90 percent by 2012, but progress is off track to meet the target of a universal completion rate by 2015. Progress toward MDGs related to infant, child, maternal mortality (MDGs 4a and 5a), and access to basic sanitation (MDG 7c), is lagging, and these goals are unlikely to be achieved. The heterogeneity of outcomes at the country level translates into stark differences in progress towards the MDGs at the regional level. At one end of the spectrum, the East Asia and Pacific region is estimated to have met all of the MDGs, while at the other end Sub-Saharan Africa is off target on most of its MDGs. The regions still lagging, in particular South Asia and Sub-Saharan Africa, started from positions that required the most improvement, however, and they have made significant progress in absolute terms, particularly on the health MDGs that the world as a whole is struggling to meet. The relative nature by which many of the MDGs are defined tends to mask significant accomplishments in South Asia and Sub-Saharan Africa
- #7: We learned some things during the last days before the deadline of the MDGs. As you know, we achieved only a partial success. New directions have been set for the global community in the Joint Letter signed by the Heads of all MDBs. Going forward, we believe that there are three critical pillars to achieving the SDGs, each based on papers and other commitments that we have made in recent years. These are: Data & evidence; financing; and implementation.
- #15: To scale up its impact , the WB will need to invest in new approaches and instruments to leverage external resources. The Bank has a key role to play in the mobilization of private capital for development because money alone is not the answer: to be optimally utilized, private capital flows to our member countries must come with the right governance, environmental and social infrastructure.
- #17: As financial institutions, the MDBs and the IMF multiply the capital, subscriptions and contributions invested with us to provide a range of financial support and products to our partner countries. On average, when our shareholders invest 1 dollar once, MDBs are able to commit 2-5 dollars in new financing every year. Even more important than the direct financial assistance provided by MDBs is how this assistance is used to catalyze, mobilize and crowd in both public and private sources of funds for development. The multiplier effect of MDB financing on domestic public resource mobilization is significant but difficult to measure. With respect to direct private sector investment, for every 1 dollar invested directly by MDBs in private sector operations, some 2-5 dollars are mobilized in additional private investment. This adds an estimated $40 to $100 billion to development flows every year. Catalyzing and channeling additional and new types of private flows to support development efforts will be a specific focus of the MDBs going forward. MDBs have long acted as a bridge between the public and private sectors, able to convene a variety of actors around important development issues – and so are well placed to deliver on this challenge
- #21: Notes: GCRP - Global Crisis Response Platform, which will provide grants and loans to help low and middle-income countries that so generously host large numbers of refugees. The IMF and WBG’s Addis Tax Initiative aims to deepen dialogue on international tax issues and develop diagnostic tools to help countries evaluate and strengthen their policies. Launched in 2015 to address countries’ demand and a global need, the initiative builds on the Bank’s current tax programs in over 48 developing countries, which include reforms to reduce inequality and address obsolete tax incentives regimes. In addition, the initiative addresses cross-country issues such as base erosion and profit sharing (BEPS), transfer pricing, the design of efficient tax systems for internationally traded goods and services, and improving tax transparency.