Gallagher Publishes Research in Journal of International Development
Kevin Gallagher, Professor of Global Development Policy at the Frederick S. Pardee School of Global Studies and Director of the Global Development Policy (GDP) Center, has co-authored a new article in the Journal of International Development. Titled “Scaling Up for Sustainable Development: Benefits and Cost of Expanding and Optimizing Balance Sheet in the Multilateral Development Banks,” the paper appeared in the March 2020 (Vol 32, No. 2: 222-243) of the journal and is co-authored with Waqas Munir, a former BU Humphrey Fellow from Pakistan.
The authors find that Multilateral Development Banks (MDBs) have been overly conservative in their lending in the years after the global financial crisis. Gallagher and Munir estimate that the MDBs could increase their lending between US$598billion and US$1,268billion to play a more significant role in transforming the world economy into one that is more socially inclusive and low-carbon.
From the abstract of the paper:
Multilateral development banks (MDBs) seemingly face a dilemma whereby rating agencies require them to maintain low‐risk profiles; otherwise, they may be at risk of downgrade. Meanwhile, MDBs are faced with the pressure to increase quantum of their lending operations. This paper estimates the lending headroom available to ‘AAA’‐rated MDBs under scenarios that attempt to manage both of these parameters. Our estimates suggest that MDBs can collectively increase their lending between US$598billion and US$1268billion (65–137 per cent) and that for at least four MDBs, the policy option of opting for ‘AA+’ may possibly be a viable case.
Read the complete article here.
Kevin Gallagher is a professor of global development policy at Boston University’s Frederick S. Pardee School of Global Studies, where he directs the Global Development Policy Center. He is author or co-author of six books, including most recently, The China Triangle: Latin America’s China Boom and the Fate of the Washington Consensus. Read more here.