The New Development Bank As An Advocate Of Country Systems

Global Economic Governance

The New Development Bank As An Advocate Of Country Systems    |   File Size: 0 kB Downloads: 193   |   Post Date: 02 October 2017

 The New Development Bank (NDB) locates the use of country systems (UCS) at the core of its operational policies. While facilitating infrastructure financing through country systems holds significant financial and non-financial benefits for developing countries, the experiences of other multilateral development banks (MDBs) have highlighted some key challenges: increased risks, weak country systems, questionable commitment of member states to the UCS agenda, procurement challenges and capacity-building constraints. By analysing the NDB’s nascent approach to UCS and drawing on the experiences of traditional MDBs, this briefing offers recommendations to the NDB on how it can strengthen its UCS approach. It also raises pertinent considerations for the NDB, its member countries and others looking to join the bank as it considers expanding its membership.


Informing the approach of multilateral development banks to use of country systems

Global Economic Governance

Informing the approach of multilateral development banks to use of country systems    |   File Size: 706 kB Downloads: 207   |   Post Date: 02 October 2017

 A greater use of countries’ public financial management (PFM) and environmental and social frameworks (ESFs) could offer developing countries a larger stake in their development trajectory. Greater use of country systems (UCS) will also assist developing countries to enhance their capacity (through strengthened legislation, regulations and institutions) to better manage this process.

Multilateral development banks (MDBs) have a significant role to play in this process by facilitating infrastructure finance to developing countries using domestic PFM and ESF systems. However, significant political and technical challenges hinder greater uptake of a UCS approach by MDBs. These challenges include increased financial, reputational and development risks; persistently weak country systems; wavering or questionable commitment to the UCS agenda; significant procurement issues in MDB-financed projects; and inadequate capacity of key stakeholders. 


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