World Bank Financialization Strategy Serves Big Finance- The World Bank has successfully built a coalition to effectively advance its ‘Maximizing Finance for Development’ (MFD) agenda. The October 2018 G20 MDB midwives of financialization
The MFD approach wants multilateral development banks (MDBs) to actively re-shape developing countries’ financial systems to better ‘complement’ global finance. MDBs have already urged developing countries to encourage local institutional investors by redesigning pension systems along lines inspired by US private pensions. Thus, MDBs have been:
MDBs no longer development banks?
While MDBs should follow recent advice for issuers to remain stakeholders by retaining shares of securitized tranches on their balance sheets, the implications are quite different when MDBs, and not private banks, securitize loans.