世界发展银行-World-Bank-Group-Approaches-to-Mobilize-Private-Capital-for-Development---An-Independent-Evaluation_486页_22mb

Summary of World Bank Group Approaches to Mobilize Private Capital for Development

Core Content

This report presents an independent evaluation of the World Bank Group's (WBG) approaches to mobilizing private capital (PCM) for development between 2007 and 2018. It assesses the relevance and effectiveness of these approaches, identifies constraints, and offers recommendations for scaling up PCM in the future.

The WBG includes the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). PCM is defined as the process of attracting private capital to support development goals, either directly or indirectly. The report outlines key concepts such as catalyzation, core mobilization, and private direct and indirect mobilization, and discusses the Cascade approach, which is the WBG's coordinated strategy to maximize finance for development by leveraging private capital.

Key Findings

PCM Targets

• The WBG has set PCM targets aligned with the G-20 and corporate goals to support the achievement of the Sustainable Development Goals (SDGs).
• IBRD aimed to mobilize $6.3 billion by 2020, but its progress slowed after 2017, with volumes dropping to $3.7 billion in 2018 and $2.6 billion in 2019.
• IFC exceeded its core mobilization targets, reaching $11.6 billion in 2018 and $10.2 billion in 2019, with a mobilization ratio of 100% and 114% respectively.
• MIGA does not have explicit PCM targets, as all its interventions count as PCM. It has been increasing its capacity through reinsurance activities and credit enhancement products.

Relevance of PCM Approaches

• PCM approaches are relevant to both country and corporate clients.
• They have helped to attract commercial banks, institutional investors, sovereign wealth funds, and pension funds.
• The Bank Group's policy-based guarantees have supported client countries' reforms, such as in Ghana, and have improved the bankability of projects.
• In Sub-Saharan Africa and Latin America and the Caribbean, corporate clients have used IFC's mobilization platforms (e.g., IFC AMC and MCPP) to access longer-term financing and diversify funding sources.

Effectiveness of PCM Approaches

• The WBG's PCM approaches are mostly effective in attracting private capital.
• World Bank guarantees have had positive outcomes by de-risking projects and improving access to infrastructure services.
• IFC's debt and bond mobilization platforms, such as the Green Cornerstone Bond Program and MCPP, have met client and investor expectations.
• The presence of domestic investors and collaboration between the World Bank, IFC, and MIGA significantly improves PCM outcomes.
• Projects with domestic investor participation had a higher success rate (80%) than those with only overseas investors (60%).
• Nonfinancial additionality was limited, with only 21% of IFC projects showing evidence of addressing environmental, social, and governance issues.

Constraints and Opportunities

Constraints

• IBRD PCM targets have not cascaded to Regional units and Global Practices (GPs), while IFC has mobilization targets in its scorecard.
• The alignment of country strategy cycles with PCM ambitions is not fully achieved, and institutional investors often have long-term horizons that are not matched by short-term strategies.
• World Bank staff incentives are not aligned with PCM performance, and there is a lack of integration between the World Bank Treasury and task teams.

Opportunities to Scale Up PCM

• The WBG can scale up PCM by improving the alignment of its strategies and operations with investor risk appetites.
• Catalyzation and core mobilization are key to scaling up PCM.
• The report highlights the need for better coordination between the WBG institutions and more effective use of financial instruments and platforms.
• Enabling environment reforms are often necessary for PCM, but opportunistic approaches can also be effective in certain subsectors or lightly regulated environments.

Recommendations

• Align PCM targets with Regional units and GPs.
• Improve staff incentives and integration across the WBG to enhance PCM performance.
• Strengthen the use of financial instruments and platforms to better meet investor needs.
• Continue to support enabling environment reforms and monitor their impact on PCM outcomes.
• Expand research on the link between PCM and long-term development outcomes.

Conclusion

The WBG has made progress in mobilizing private capital for development, particularly through IFC's initiatives. However, there are still significant constraints that need to be addressed to scale up PCM effectively. The report emphasizes the importance of coordination, alignment, and innovation in financial instruments and platforms to achieve sustainable development outcomes.