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I said in an earlier blog that I thought IDA is the world’s most effective source of external finance for overall development in its poorest countries. Perhaps it’s worth setting out the evidence for that in a little more detail.
The World Bank’s Independent Evaluation Group has just issued a “Focused Assessment” of the IDA Private Sector Window, looking at the PSW’s first five years of operation. The PSW, launched in 2018, uses $5.6 billion of World Bank IDA financing to subsidize IFC and MIGA investments in the private sector through mechanisms including local currency financing and first loss guarantees. Six years after launch, it is still hard to do a proper analysis of the Window’s development impact.
The World Bank’s soft lending arm, IDA, will begin its 21st round of replenishment negotiations soon. One thing on the agenda will be the IDA Private Sector Window (PSW), which uses IDA resources to subsidize private sector investments primarily through the World Bank Group’s International Finance Corporation (IFC). Negotiators should take a hard look at the PSW before considering more funding for it, because the window is distorted, opaque, and doesn’t let very much of anything through.
At the Annual meetings of the World Bank and IMF last year, shareholders asked the World Bank to come up with a set of proposals to evolve a larger role in climate and other global public goods. The Bank’s first response came pretty quick: by mid December, only a couple of months after the request, the institution sent an evolution roadmap to the World Bank board. It is very much worth a read, with much to like but much to panic over, too. Unsurprisingly, given the timeline, a lot more thinking is needed.
The establishment of additional storage space and the acquisition of processing equipment will facilitate more effective feed production.