World Bank Group Approaches to Mobilize Private Capital for Development : An Independent Evaluation

To achieve the Sustainable Development Goals (SDGs) by 2030, development institutions will need to leverage an unprecedented amount of private sector capital. This is more pressing in the current context as COVID-19 recoveries will require mobilizi...

Full description

Bibliographic Details
Main Author: World Bank
Format: Report
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/313151611175458778/World-Bank-Group-Approaches-to-Mobilize-Private-Capital-for-Development-An-Independent-Evaluation
http://hdl.handle.net/10986/35040
id okr-10986-35040
recordtype oai_dc
spelling okr-10986-350402021-09-20T14:05:58Z World Bank Group Approaches to Mobilize Private Capital for Development : An Independent Evaluation World Bank PRIVATE CAPITAL FLOWS WORLD BANK GROUP PORTFOLIO MULTILATERAL INVESTMENT GUARANTEE AGENCY COMMITTEE ON DEVELOPMENT EFFECTIVENESS INVESTMENT CATALYZATION IFC PORTFOLIO MULTILATERAL DEVELOPMENT BANKS CAPITAL MOBILIZATION To achieve the Sustainable Development Goals (SDGs) by 2030, development institutions will need to leverage an unprecedented amount of private sector capital. This is more pressing in the current context as COVID-19 recoveries will require mobilizing both public and private sources in the short to medium term. Consequently, private capital mobilization (PCM) has become a World Bank Group priority, with efforts being deployed across all Bank Group institutions, under the context of the Maximizing Finance for Development (MFD) strategy. This evaluation offers IEG’s first systematic assessment of the Bank Group’s approaches to mobilize private capital to achieve development outcomes by engaging with investors and project sponsors. The evaluation finds Bank Group PCM approaches to have been relevant to both country and corporate clients, although partially meeting investor’s priorities and expectations. The evaluation finds that PCM approaches are mostly effective in mobilizing private capital and points to the untapped PCM potential that still exists even in low-income and lower-middle income countries. The evaluation also highlights important gaps: IBRD PCM targets have not cascaded to Regional units and Global Practices (GPs), and IFC PCM approaches are not consistently aligned with investors’ risk appetites. The evaluation identifies three near-term actions that can enhance the ability of the Bank Group to mobilize private capital and thus improve the probability of meeting corporate targets and improving outcomes: (i) To meet the 2030 PCM targets, prioritize client countries for PCM approaches, with corresponding targets cascading to the Regional units and GPs (IBRD); (ii) Expand PCM platforms, guarantees, and disaster risk management products commensurate with project pipeline development (World Bank Group); and (iii) Develop new PCM products and improve product alignment with the needs of new investor groups and partners (IFC and MIGA). 2021-01-22T19:06:18Z 2021-01-22T19:06:18Z 2021-01-20 Report http://documents.worldbank.org/curated/en/313151611175458778/World-Bank-Group-Approaches-to-Mobilize-Private-Capital-for-Development-An-Independent-Evaluation http://hdl.handle.net/10986/35040 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: IEG Evaluation
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PRIVATE CAPITAL FLOWS
WORLD BANK GROUP PORTFOLIO
MULTILATERAL INVESTMENT GUARANTEE AGENCY
COMMITTEE ON DEVELOPMENT EFFECTIVENESS
INVESTMENT CATALYZATION
IFC PORTFOLIO
MULTILATERAL DEVELOPMENT BANKS
CAPITAL MOBILIZATION
spellingShingle PRIVATE CAPITAL FLOWS
WORLD BANK GROUP PORTFOLIO
MULTILATERAL INVESTMENT GUARANTEE AGENCY
COMMITTEE ON DEVELOPMENT EFFECTIVENESS
INVESTMENT CATALYZATION
IFC PORTFOLIO
MULTILATERAL DEVELOPMENT BANKS
CAPITAL MOBILIZATION
World Bank
World Bank Group Approaches to Mobilize Private Capital for Development : An Independent Evaluation
description To achieve the Sustainable Development Goals (SDGs) by 2030, development institutions will need to leverage an unprecedented amount of private sector capital. This is more pressing in the current context as COVID-19 recoveries will require mobilizing both public and private sources in the short to medium term. Consequently, private capital mobilization (PCM) has become a World Bank Group priority, with efforts being deployed across all Bank Group institutions, under the context of the Maximizing Finance for Development (MFD) strategy. This evaluation offers IEG’s first systematic assessment of the Bank Group’s approaches to mobilize private capital to achieve development outcomes by engaging with investors and project sponsors. The evaluation finds Bank Group PCM approaches to have been relevant to both country and corporate clients, although partially meeting investor’s priorities and expectations. The evaluation finds that PCM approaches are mostly effective in mobilizing private capital and points to the untapped PCM potential that still exists even in low-income and lower-middle income countries. The evaluation also highlights important gaps: IBRD PCM targets have not cascaded to Regional units and Global Practices (GPs), and IFC PCM approaches are not consistently aligned with investors’ risk appetites. The evaluation identifies three near-term actions that can enhance the ability of the Bank Group to mobilize private capital and thus improve the probability of meeting corporate targets and improving outcomes: (i) To meet the 2030 PCM targets, prioritize client countries for PCM approaches, with corresponding targets cascading to the Regional units and GPs (IBRD); (ii) Expand PCM platforms, guarantees, and disaster risk management products commensurate with project pipeline development (World Bank Group); and (iii) Develop new PCM products and improve product alignment with the needs of new investor groups and partners (IFC and MIGA).
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title World Bank Group Approaches to Mobilize Private Capital for Development : An Independent Evaluation
title_short World Bank Group Approaches to Mobilize Private Capital for Development : An Independent Evaluation
title_full World Bank Group Approaches to Mobilize Private Capital for Development : An Independent Evaluation
title_fullStr World Bank Group Approaches to Mobilize Private Capital for Development : An Independent Evaluation
title_full_unstemmed World Bank Group Approaches to Mobilize Private Capital for Development : An Independent Evaluation
title_sort world bank group approaches to mobilize private capital for development : an independent evaluation
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/313151611175458778/World-Bank-Group-Approaches-to-Mobilize-Private-Capital-for-Development-An-Independent-Evaluation
http://hdl.handle.net/10986/35040
_version_ 1764482195802554368