Gallagher Publishes Op-Ed on Development Banks

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Kevin Gallagher, Professor of Global Development Policy and Director of the Global Development Policy Center at the Frederick S. Pardee School of Global Studies at Boston University, co-wrote a recent Op-Ed on the annual spring meetings of the World Bank Group and the International Monetary Fund.

Gallagher’s Op-Ed, which he co-wrote with Jörg Haas, was published in Project Syndicate on April 19, 2018. The Op-Ed is entitled “No Blank Check for Development Banks.

From the text of the Op-Ed:

Global financial leaders are convening in Washington, DC, this week for the annual spring meetings of the World Bank Group and the International Monetary Fund. This year, they will ask the world’s taxpayers to grant the World Bank and other multilateral development banks (MDBs) more capital to fill global infrastructure gaps.

Increasing the capital – and optimizing the existing capital – of the world’s MDBs is of the utmost importance. But doing so makes sense only if that financing is used to move the world economy in a direction consistent with the United Nations Sustainable Development Goals (SDGs) and the 2015 Paris climate agreement.

According to researchers at the Brookings Institution, the world needs to invest an additional $3 trillion per year in sustainable infrastructure in order to keep global warming below 2°C relative to pre-industrial levels – the target enshrined in both the SDGs and the Paris agreement. Today, however, infrastructure contributes heavily to global warming, with about 70% of all greenhouse-gas emissions coming from its construction and operation.

Gallagher served on the U.S. Department of State’s Investment Subcommittee of the Advisory Committee on International Economic Policy and the International Investment Division of the United Nations Conference on Trade and Development.  He has served as a visiting or adjunct professor at the Paul Nitze School for Advanced International Studies at Johns Hopkins University, the Fletcher School of Law and Diplomacy, Tufts University; El Colegio de Mexico in Mexico; Tsinghua University in China; and the Center for State and Society in Argentina. You can follow him on Twitter @KevinPGallagher.