Responses: Introduction to the consultation: The adaptability and responsiveness of the World Bank

The global financial and economic crisis is hitting low income countries (LICs) hard. LICs are facing several balance of payments shocks including reduced capital inflows, reduced exports, fewer remittances and pressures on aid. Development prospects of LICs are severely weakened. As a result, LICs are increasingly looking towards World Bank programmes to meet development goals and towards IMF programmes to play the counter-cyclical financing role. This consultation blog investigates how well the World Bank is responding to these concerns.

As demand for World Bank programmes increases (e.g. the International Finance Corporation (IFC), International Development Association, and International Bank for Reconstruction and Development (IBRD)), this blog examines the adaptability and responsiveness of the World Bank and asks for your feedback on how the Bank can promote stronger and sustainable economic growth for low-income countries; and protect LICs better against future shocks and crises.  

The World Bank has responded to the global downturn and recent fuel/food shocks through (amongst other things):

• New (or expanded) initiatives to streamline support to the poor and vulnerable such as the Global Food Crisis Response Programme (GFRP), the Rapid Social Response Programme (RSRP) and the Infrastructure Recovery and Assets Platform (INFRA) under the overarching Vulnerability Financing Framework (VFF).
• New (or expanded) initiatives to support the private sector (in both LICs and Middle Income Countries (MICs)) – these include the Global Trade Liquidity Pool (GTLP), a new Infrastructure Crisis Facility (ICF) and new Microfinance Enhancement Facility (MEF).
• Bringing forward and speeding up concessional lending to LICs by fast-tracking and frontloading existing IDA15 resources;
• Additional non-concessional finance for the private sector in LICs – approximately $4bn as part of the World Bank’s broader efforts to provide an additional $100bn in non-concessional assistance over the next 2-3 years.

This blog aims to solicit views from stakeholders in low income countries (including business, academia, NGOs, government) on the following issues (see consultation brief):

• Have the World Bank’s existing suite of crisis response facilities provided appropriate, effective, flexible and timely support to LICs in the current crisis?
• Is there widespread understanding amongst recipients of the full range of World Bank instruments and facilities?
• Do World Bank commitment times need to be speeded up and funds disbursed quicker and more flexibly, and has World Bank assistance during this crisis been provided with minimum (programme essential) conditionality?
• How could the World Bank’s response to future crises and shocks be strengthened?
• How effective has the World Bank Group been in assisting the private sector during the current crisis? How could the World Bank Group’s support for the private sector in a crisis be strengthened?
• What more could the World Bank do to promote strong and sustainable growth in low income countries?

There are a number of ways you can respond – you can post a blog with your thoughts on the IMF  or the World Bank , or comment on the views of someone else. You can use the response template  or just send an email to us at g20.consultation@odi.org.uk.

Your thoughts and views will be greatly appreciated and will encourage and facilitate an insightful debate on how the WB and IMF can promote stronger and sustainable economic growth in LICs and, protect them better against future shocks and crises.