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COVID-19 Economic Consequences, Resources and Effective Measures

The world is now responding to the greatest crisis since World War II and is in the midst of an unprecedented fiscal and monetary response to the COVID-19 pandemic. There are massive amounts of resources…

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Re-examining the Terms of Aid

The goal of development in fragile states is well established: to help forge pathways out of fragility towards self-reliance and to deliver inclusive and sustainable social, economic, and security outcomes for citizens. The way to…

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Performance and Policy-Based Budgeting: How to Spot the Fakes

In the allocation of scarce public resources, good budgeting is an art and a skill. It is a core function of government, and as such, it is fundamentally a political process with many competing objectives.…

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Defragmentation: What Can Donors Do?

This is a follow-up note to the ISE Development Practice Note on the consequences of donor-induced fragmentation, which argued that the way development partners have managed their ODA spending and development programs has resulted in…

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The Absorptive Capacity Limit: The point where too much aid becomes bad aid

Absorptive capacity is not fixed – theoretically, it can be improved by successful reform. Absorptive capacity can change if the underlying drivers of absorptive capacity change. An increased capacity to absorb aid can occur for…

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Revocable Debt Relief: Transforming a Liability into a Contingent Liability

Some limited forms of debt forgiveness and assistance have been given to families, including through moratoriums on interest payments and arrangements for no or low-consequence on default. It has also been argued that government can…

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Who Cares About Development Risk?

A general view appears to be that development and fiduciary risks are “two sides of the same coin and cannot be usefully be separated”. This Development Practice Note argues that they are different, and that…

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The Consequences of Donor-Induced Fragmentation

Donor-induced fragmentation of public financial management systems reduces reputation risk, but it unambiguously increases development risk – the longer-term risk of not achieving development objectives. This Development Practice Note proposes a four-part solution for dealing…

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Preparing for a Syrian Transition: Trust Funds

This note considers the application of a multi-donor trust fund (MDTF) to a possible Syrian transition. Firstly, it considers how an MDTF could act as the primary funding mechanism for short-term emergency support. Secondly, it…

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Economic Tools Mapping: Development Credit Authority of USAID

Borrowers in developing countries often have restricted access to capital because risk-averse financial institutions refuse to look beyond their overall country risk profiles.  The Development Credit Authority (DCA) developed by USAID presents an innovative solution.…

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State Function: Market Engagement
Insight & Analysis: Market Building
Topic: International Development Finance
Publication Type: Economic Tools
Economic Tools Mapping: Crop Insurance

Crop insurance programs aim to redistribute risk and reduce agricultural sector volatility, helping to mitigate the many environmental and market risks that impact farmers’ incomes. This note examines the potential benefits of crop insurance programs…

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State Function: Market Engagement
Insight & Analysis: Market Building
Topic: International Development Finance, Agriculture
Regions: Americas
Location: India, Argentina
Publication Type: Economic Tools
Economic Tools Mapping: Caribbean Catastrophe Risk Insurance Facility

The Caribbean presents a vulnerable combination of several very small states and a propensity to major natural catastrophes such as hurricanes. This combination spurred the creation of the world’s first multi-country risk pool. The Caribbean…

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State Function: Market Engagement, Disaster Readiness & Resilience
Insight & Analysis: Market Building
Topic: International Development Finance
Regions: Americas
Location: Haiti
Publication Type: Economic Tools