Independent Evaluation Group2012-03-192012-03-192011978-0-8213-8665-1https://hdl.handle.net/10986/2277The global economic crisis that began in 2008 threatened to erase years of progress in developing countries. In response, the World Bank Group increased lending to unprecedented levels. The World Bank posted a large increase in middle income countries (MICs), and a much smaller one in low income countries (LICs). The International Finance Corporation (IFC) focused on trade finance, mainly in LICs. Its new business initially fell in MICs, rebounding only in late fiscal 2010. The Multilateral Investment Guarantee Agency (MIGA) concentrated on guarantees in Eastern Europe. Analytic and advisory work helped inform government and private sector responses to the crisis. This report presents an initial real-time evaluation of the readiness, relevance, quality-at-entry, short-term results, and likely sustainability of the Bank Group response from the start of the crisis through fiscal 2010. This evaluation builds on a 2008 Independent Evaluation Group (IEG) assessment of Bank Group interventions during past crises and draws extensively on 11 country case studies and field visits. Given the short time since the crisis response started, the evaluation is geared more to raising flags than to presenting definitive conclusions.CC BY 3.0 IGOACCESS TO FINANCEACCOUNTABILITYACCOUNTINGADBADVANCED ECONOMIESADVISORY SERVICESADVISORY WORKASSET MANAGEMENTBALANCE SHEETBANK ASSETBANK CAPITALIZATIONBANK FINANCINGBANK LENDINGBANK LENDING COMMITMENTSBANKING SECTORBASIC NEEDSBINDING CONSTRAINTBORROWINGBORROWING COSTSBUDGET CONSTRAINTSBUSINESS DEVELOPMENTBUSINESS VOLUMECAPACITY BUILDINGCAPACITY CONSTRAINTSCAPITAL ADEQUACYCAPITAL FLOWSCASH TRANSFERCOMMERCIAL FINANCECONFLICT OF INTERESTCONFLICTS OF INTERESTCONSOLIDATIONCONVERSIONSCOPYRIGHT CLEARANCECOPYRIGHT CLEARANCE CENTERCORPORATE GOVERNANCECOUNTRY DEBTCOUNTRY RISKCREDIBILITYDEBTDEBTSDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ASSISTANCEDEVELOPMENT FINANCEDEVELOPMENT FINANCE COMPANYDEVELOPMENT FINANCE INSTITUTIONSDISBURSEMENTDISBURSEMENTSECONOMIC ACTIVITYECONOMIC CRISISECONOMIC GROWTHECONOMIC POLICYECONOMIES OF SCALEEIBEMERGING MARKETSEMPLOYMENTEQUITY CAPITALEQUITY FUNDEQUITY PRODUCTSEXPENDITUREEXPLOITATIONEXTREME POVERTYFACTORINGFAMILIESFIDUCIARY RESPONSIBILITYFINANCE COMPANYFINANCE CORPORATIONFINANCIAL ACCOUNTSFINANCIAL ASSISTANCEFINANCIAL CAPACITYFINANCIAL CRISISFINANCIAL FLOWSFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL RESOURCESFINANCIAL SECTORFINANCIAL SECTOR ASSESSMENTFINANCIAL SECTOR DEVELOPMENTFINANCIAL SECTOR REFORMFINANCIAL STRESSFINANCIAL SUPPORTFINANCIAL SUSTAINABILITYFINANCIAL SYSTEMSFINANCING FACILITYFINANCING NEEDSFISCAL DEFICITSFOREIGN CAPITALFOREIGN EXCHANGEFOREIGN EXCHANGE EXPOSUREFOREIGN INVESTMENTSFUND MANAGEMENTFUND MANAGERGENDERGLOBAL BUSINESSGLOBAL ECONOMYGLOBAL TRADEGLOBALIZATIONGOVERNMENT CAPACITIESGROSS DEBTGROSS DOMESTIC PRODUCTGROUP LENDINGGUARANTEE AGENCYHUMAN DEVELOPMENTINCOMEINCOME GROUPINFRASTRUCTURE FINANCINGINFRASTRUCTURE INVESTMENTINSTITUTIONAL CAPACITYINSTRUMENTINSURANCEINTERNATIONAL BANKINTERNATIONAL COOPERATIONINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INSTITUTIONINTERNATIONAL FINANCIAL INSTITUTIONSINVESTINGINVESTMENT BANKINVESTMENT DECISIONINVESTMENT DECISIONSINVESTMENT LOANSINVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITYINVESTMENT PROJECTSINVESTMENT RISKSINVESTMENT VOLUMESISLAMIC DEVELOPMENT BANKISSUANCELABOR MARKETLABOR MARKETSLEGAL OBLIGATIONSLEGAL RIGHTLIABILITYLIQUIDITYLOANLOCAL CURRENCYLONG-TERM CAPITALLONG-TERM INVESTORLOW-INCOME COUNTRIESLOW-INCOME COUNTRYMACROECONOMIC CONDITIONSMACROECONOMIC STABILITYMARKET CONFIDENCEMARKET DEVELOPMENTSMATURITIESMATURITYMDBMFIMICROFINANCEMICROFINANCE INSTITUTIONMIDDLE-INCOME COUNTRIESMIDDLE-INCOME COUNTRYMONETARY FUNDMULTILATERAL DEVELOPMENTMULTILATERAL DEVELOPMENT BANKSNEGATIVE SHOCKSNEW BUSINESSNONPERFORMING LOANNONPERFORMING LOANSOUTREACHPENSIONPOLITICAL ECONOMYPOLITICAL RISKPORTFOLIOPORTFOLIO MANAGEMENTPRIVATE CAPITALPRIVATE CAPITAL FLOWSPRIVATE EQUITYPRIVATE FINANCIAL INSTITUTIONPRIVATE INVESTMENTPRIVATE INVESTMENTSPRIVATE SECTOR DEVELOPMENTPRODUCTIVITYPROFITABILITYPUBLIC EXPENDITURESPUBLIC INVESTMENTREAL SECTORRECAPITALIZATIONREGIONAL BANKSREORGANIZATIONRESOURCE ALLOCATIONRISK AVERSIONRISK PERCEPTIONSRISK PREMIUMSSAFETY NETSETTLEMENTSHARE OF EQUITYSHORT-TERM FINANCINGSHORT-TERM LIQUIDITYSHORT-TERM TRADE FINANCESMALL ENTERPRISESSOCIAL DEVELOPMENTSOCIAL SAFETY NETSSOCIAL SECURITYSUBSIDIARIESSUBSIDIARYSUPPLEMENTAL FINANCINGSUPPLY CHAINSUSTAINABLE GROWTHSWAPSTRANSPORTTRUST FUNDTRUST FUNDSUNEMPLOYMENTUNIONVULNERABLE GROUPSWorld Bank10.1596/978-0-8213-8665-1