Research Insights: What Can Multilateral Development Banks Do to Reduce Infrastructure Gaps in Emerging Economies?

Peer Reviewed icon Peer Reviewed
Date issued
April 2023
Subject
Infrastructure Development;
Bank Loan;
Finance;
Development Bank;
Public Sector;
Capital Flow;
Emerging Market;
Private Mobilization;
Infrastructure Work;
Investment;
Private Sector;
Foreign Saving;
Coronavirus
JEL code
F21 - International Investment • Long-Term Capital Movements;
F34 - International Lending and Debt Problems;
G15 - International Financial Markets;
H81 - Governmental Loans • Loan Guarantees • Credits • Grants • Bailouts;
O19 - International Linkages to Development • Role of International Organizations
Category
Catalogs and Brochures
Through their loans, Multilateral Development Banks (MDBs) are key resource mobilizers. MDB lending to a sector in a country significantly increases inflows from other sources up to two years later. The resources mobilized are more than four times the size of MDB financing. They come from both the public and the private sector, and the mobilization that takes place is cross-border as well as national.