Columbia International Affairs Online: Policy Briefs

CIAO DATE: 06/2011

Growing Business or Development Priority? Multilateral Development Banks' Direct Support to Private Firms

Guillermo Perry

April 2011

Center for Global Development

Abstract

Direct support to private firms in developing countries constitutes a large and growing share of multilateral development banks’ financial activities. This trend contrasts with the advice MDBs gave developing countries until a decade ago to privatize or liquidate the development banks supporting private firms, or to transform them into nonbanking development agencies. Opinion has changed since then, especially after development banks successfully intervened in the recent financial crisis.