An Innovative IFI Operating Model

The document argues for a shift in the operating models of multilateral development banks (MDBs) to move beyond project-by-project funding toward systemic, program-based facilities. It suggests three primary areas for reform: enhancing the efficacy of country and sector platforms to drive systemic shifts, scaling risk-sharing instruments to lower the cost of capital and attract private investment, and overhauling the MDB business model to reposition these institutions as "mobilizers in chief" through balance sheet optimization and process standardization.

• To drive systemic shifts, MDBs should transition from a project-by-project approach toward program-based funding facilities and needs-based funding that improves finance quality and incentivizes domestic private capital.
• Private capital can be catalyzed and the cost of capital addressed through the large-scale deployment of risk-sharing instruments, such as new guarantee products, project preparation facilities, and mechanisms to manage exchange rate risks.
• The World Bank and other MDBs require a business model overhaul to become "mobilizers in chief," which involves adopting an "originate to distribute" model for balance sheet optimization, standardizing processes, and improving cross-country data-sharing.

APA

Climate Policy Initiative (2023). An Innovative IFI Operating Model. https://www.climatepolicyinitiative.org/publication/an-innovative-ifi-operating-model-discussion-paper-apr2023/

Chicago

Climate Policy Initiative. An Innovative IFI Operating Model. 2023. https://www.climatepolicyinitiative.org/publication/an-innovative-ifi-operating-model-discussion-paper-apr2023/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=An Innovative IFI Operating Model |date=6 April 2023 |url=https://www.climatepolicyinitiative.org/publication/an-innovative-ifi-operating-model-discussion-paper-apr2023/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2023innovative, author = {{Climate Policy Initiative}}, title = {{An Innovative IFI Operating Model}}, institution = {Climate Policy Initiative}, year = {2023}, month = apr, url = {https://www.climatepolicyinitiative.org/publication/an-innovative-ifi-operating-model-discussion-paper-apr2023/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }