Multilateral Development Banks for Global Public Goods - Good Practices

This microsite is designed to inform stakeholders from Multilateral Development Banks (MDBs) and developing countries involved in the designing of development projects on how they can support the provision of Global Public Goods (GPGs). The work presented summarises and visualises the outcomes of the Oxford Economics study commissioned by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).

GPGs play a central role in shaping the future of international development cooperation. GPGs are key to preventing and addressing international crises, such as climate change and violent conflict. Further, they provide the basis for sustainable growth and collective well-being in an interconnected world with multiple impacts of national development beyond national boundaries. However, GPGs in areas like climate, security or knowledge are systematically underinvested in due to their externalities, which provide incentives for free riding. Thus, the characteristics of GPG benefits – to be to a certain degree non-excludable and non-rival – cause market failures in the provision of the GPGs leading to an underprovision. MDBs can play a key role in tackling this underprovision and supporting the provision and protection of GPGs in their client countries.

99 examples of GPG provision

Oxford Economics identified 99 promising practices and good examples of how the provision of GPGs can be supported through international funding—and in particular through MDBs—at the country level. We gathered the project examples based on comprehensive desk research and interviews with more than 30 key actors in the realm of development cooperation. The projects might not have been intended to support the provision of GPGs —such as those GPG projects mostly financed via Trust Funds and FIFs—but they still produced high GPG effects by maximising the synergies between national and global benefits.

The 99 projects are summarised in the Project Database. You can filter all 99 projects by Multilateral Institution(s) involved, GPG theme, Sector, Region, and Country Income Group.

20 in-depth case studies

20 projects were selected to conduct in-depth case studies and carry out “deep dive” research to showcase good practices of provision of GPGs by MDBs. The projects were selected based on whether the intervention: 

  • benefitted not only people in the country of implementation but also beyond the country’s borders;
  • supported the implementation of framework conditions that changed the incentive structure for the provision of GPGs;
  • could be replicated in other countries; and
  • was rated a good practice in reports or named a good practice by interview partners from MDBs

The case studies showcase successful and highly replicable ways of supporting the provision of GPGs – considering both national and cross-country benefits of an intervention. Furthermore, valuable lessons can be learned on the institutional set-up, financing, quantification and other aspects concerning the support of GPGs by MDBs. Further information can be found in the introductory note to the case studies.

The 20 case studies can be accessed either by clicking on the GPG themes on the right-hand side or by filtering the Project Database for Case Studies.