The International Development Association’s Sustainable Development Finance Policy : An Early-Stage Evaluation
This evaluation provides an early-stage assessment of the Sustainable Development Finance Policy (SDFP) of the International Development Association (IDA), which went into effect July 1, 2020. A steep rise in debt vulnerabilities in IDA-eligible co...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2022
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/654111636583607689/The-International-Development-Association-s-Sustainable-Development-Finance-Policy-An-Early-Stage-Evaluation http://hdl.handle.net/10986/37375 |
| Summary: | This evaluation provides an
early-stage assessment of the Sustainable Development
Finance Policy (SDFP) of the International Development
Association (IDA), which went into effect July 1, 2020. A
steep rise in debt vulnerabilities in IDA-eligible countries
over the past decade highlighted weaknesses in the previous
policy, the Non-Concessional Borrowing Policy (NCBP), and
precipitated IDA deputies' request for adaptation in
IDA's allocation and financial policies through the
SDFP. The SDFP improves on the NCBP by broadening country
coverage to include more countries at risk of debt distress,
and it includes domestic debt, which has been an important
factor in rising debt stress for IDA-eligible countries. The
SDFP is intended to enhance incentives to address
country-specific drivers of debt stress. This evaluation
assesses whether there is scope to improve the design and
implementation of the SDFP and whether potentially
vulnerable countries are excluded from performing necessary
performance and policy actions (PPAs), given the speed at
which some IDA-eligible countries have moved to higher
levels of debt distress. The evaluation also assesses
whether PPAs are systematically targeting the most important
country-specific drivers of debt stress and offers
principles that to guide future PPAs. |
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