Publication: The World Bank’s Role in and Use of the Low-Income Country Debt Sustainability Framework: Independent Evaluation Group
Date
2023-05-02
ISSN
Published
2023-05-02
Author(s)
World Bank
Abstract
This evaluation, requested by the
Committee on Development Effectiveness of the Executive
Board of the International Development Association (IDA), is
intended to provide input and insight into the upcoming
World Bank–International Monetary Fund (IMF) review of the
Low-Income Country Debt Sustainability Framework (LICDSF)
currently planned for fiscal year 2023. The sharp rise in
debt stress among low-income countries and a changing global
risk landscape leading up to and after the onset of the
COVID-19 pandemic have pushed concerns with debt
sustainability to the top of the global policy agenda. This
evaluation assesses the World Bank’s inputs into the LIC-DSF
and how it uses LIC-DSF outputs to inform various corporate
and country-level decisions. Main findings and
recommendations include: (i) Expectations of the World Bank
in taking the lead on long-term growth prospects should be
clarified. (ii) Recently increased attention to debt data
coverage should be sustained and extended; greater attention
is needed to assess data quality. (iii) The DSA should be
more directly and consistently used to inform priorities for
the identification of fiscally oriented prior actions in
development policy operations and SDFP performance and
policy actions. (iv) The World Bank should continue to give
increasing attention in the LIC-DSF to the long-term
implications of climate change, in terms of both growth and
fiscal requirements of adaptation and mitigation.
Link to Data Set
Citation
“World Bank. 2023. The World Bank’s Role in and Use of the Low-Income Country Debt Sustainability Framework: Independent Evaluation Group. © Washington, DC. http://hdl.handle.net/10986/39774 License: CC BY-NC 3.0 IGO.”