Eurodad's New Brief '‘Rebuilding better’, but betterfor whom?"
As the official WB/IMF Spring Meetings kicks-off today, please find attached Eurodad’s latest briefing paper on the World Bank’s response to the COVID-19 pandemic. The Brief is titled ‘Rebuilding better’, but better for whom? A Review of the WBG response to the COVID-19 Crisis’. Main Findings of the report are:
1.The WBG sees its Covid-19 response as firmly linked to its long-term development vision in which global private sector finance plays a strong role.
- For the WBG, contraction in ‘fiscal headroom’ calls for increased private sector financing. However, diverting public resources to attracting private investment risks placing increased fiscal pressure on government finances, which are already facing immense strain due to the pandemic.
- The IFC, with its emphasis on creating markets and mobilising private finance, has a prominent position at all stages of the Covid-19 response. The IFC is expected to account for around one third of the Bank’s response,
including in health, suggesting that private markets will be prioritised over equitable public services.
- Rather than supporting local private enterprises, some IFC projects have provided finance to global chains of hhotels, large conglomerates, subsidiaries of international companies and international private health providers.
This brief updates and builds on Eurodad’s previous briefing paper Never let a pandemic go to waste: How the World Bank’s Covid-19 response is prioritising the private sector