Bottom lines, better lives? Rethinking multilateral financing to the private sector

This report critically examines multilateral development banks' financing to the private sector, which has expanded significantly in recent years. It questions the extent to which this finance contributes to poverty reduction, human rights and environmental sustainability. Several areas of concern are identified, including tendencies to prioritise attracting foreign investment and to support areas already favoured by investors, rather than focusing on activities that could have the greatest returns for development. The rapid growth of 'arms-length' investments through financial intermediaries is a particular cause for concern, because of a lack of clearly defined development objectives and inadequate monitoring. The report argues that radical reform of MDBs' approach to the private sector is needed and suggests how it should change in order to support development.

http://www.brettonwoodsproject.org/privatesector

This briefing can also be viewed as a PDF:

http://www.brettonwoodsproject.org/doc/private/privatesector.pdf

This briefing is jointly published by Action Aid, Bretton Woods Project, Christian Aid, Eurodad, Campagna per la riforma della Banca Mondiale and Third World Network.