World Bank Group's Approaches to Mobilize Private Capital for Development - Committee on Development Effectiveness Report, Meeting of September 16, 2020

Jul 19, 2026

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Report from the World Bank Group’s Committee on Development Effectiveness (CODE) summarizing and discussing an IEG evaluation on approaches to mobilize private capital for development. The committee commends the evaluation’s diagnostics and methodology, addresses areas needing clearer presentation and engagement between IEG and Management, and requests regular Board updates. It highlights the need to scale Private Capital Mobilization and cascade approaches to meet capital package commitments, support SDG progress, and tailor implementation by sector and country. It also covers testing pilot instruments, strengthening Country Private Sector Diagnostics, improving collaboration, and consolidating IFC mobilization results while maintaining standards.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages1

Reading Time3 min

AccessFree to download

Meeting overview

Discussion and recommendations

Scaling and cascade priorities

Pilot instruments and diagnostics

Collaboration and measurement clarification

IFC mobilization results and product alignment

Public Disclosure Authorized Public Disclosure Authorized World Bank Group's Approaches to Mobilize Private Capital for Development An IEG Evaluation Report to the Board from the Committee on Development Effectiveness ∗ Meeting of September 16, 2020 The Committee on Development Effectiveness (CODE) (“the Committee”) met to consider thereport entitled World Bank Group's Approaches to Mobilize Private Capital for Development: An IEG Evaluation (CODE2020-0037) and Draft Management Response (CODE2020-0044) . The Committee welcomed the evaluation, commending IEG for the diagnostic, methodology, comprehensiveness and quality of the report. Members noted the relevance and timeliness ofthe topic given the context of discussions on the Forward Look and capital package implementation, as well as the challenges posed by the COVID-19 crisis on external financial flows towards developing countries. Acknowledging members ’ concern on Management’s disagreement and partial agreement on the recommendations, IEG and Management agreed to engage in order to understand Management’s challenges, present the case more clearly and ensure ownership of the recommendations. Members asked for regular updates to the Board, with the Chair suggesting an update to the Board in 4-6 months, subject to WBG’s Management readiness. Members acknowledged that the new Management Action Record (MAR) process would also serve as a platform for the Board to learn the progress made towards implementing the recommendations. While encouraged to learn that the WBG approaches were found to be relevant and mostly effective to meet the expectations and priorities of client countries and investors, members acknowledged there was room for improvement. They called for the WB to give greater priority to scale up its Private Capital Mobilization (PCM) efforts and the cascade approach, with the objective of meeting the capital package commitments, as well as to help client countries advance towards meeting the Sustainable Development Goals (SDGs). Management noted IEG’s findings that IBRD can realistically meet its corporate target of a 25 percent mobilization ratio on average by 2030 and that management is committed to meeting that goal. Noting Management’s explanations on how decentralization and training opportunities for Country Management Units could help advance the PCM agenda, members highlighted the need to differentiate by sector and by country, with some encouraging to move further towards IDA countries and pay more attention to domestic PCM and local capacity building. Members agreed with the recommendation on testing pilot instruments and encouraged Management to come up with innovative approaches and instruments to extend the reach and impact of development finance. They underscored the importance of Country Private Sector Diagnostics (CPSD) to create a more positive environment for cascading PCM targets, and suggested to enhance cooperation between the WBG institutions. Acknowledging Management’s remarks on the relevance of collaborating with other Multilateral Development Banks to create the right markets, members asked for clarifications on differences in measurement, challenges to improve the collaboration and whether the presence of bilateral Development Finance Institutions improved project performance. Members looked forward to the future evaluation on catalyzation approach to capital mobilization, to complement this evaluation. Members were pleased to learn about IFC exceeding its core mobilization targets and meeting client expectations. They agreed with IEG’s recommendation that the positive results could be consolidated by improving product alignment with investors’ needs, while maintaining goals, procedures and Environmental and Social standards. Members acknowledged Management’s explanations that IFC's efforts need to be calibrated and delivered within the specific regulatory and operating environment of different asset classes and invest

FAQs

What was the CODE committee meeting focused on on September 16, 2020?

The committee reviewed an IEG evaluation titled World Bank Group's Approaches to Mobilize Private Capital for Development and a draft Management Response, and then discussed recommendations and follow-up actions.

What did members request the Board and Management to do after the evaluation?

Members asked for regular updates to the Board and highlighted that IEG and Management should engage to understand challenges, clarify the case for the recommendations, and ensure ownership.

How did the committee suggest improving private capital mobilization efforts?

They called for greater priority to scaling Private Capital Mobilization and the cascade approach, differentiating by sector and by country, strengthening Country Private Sector Diagnostics, and enhancing cooperation among WBG institutions and with other MDBs.

Jul 19, 2026

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