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

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.