We welcome progress in leveraging IDA equity, which will enable the Bank to both target scarce concessional financing to the poorest IDA clients and increase allocations of non-concessional resources to countries at a more advanced stage of development, in line with the different needs and capacities of IDA’s evolving client base.
We support the proposal of a window in IDA18 to leverage IFC and MIGA to promote private sector development in IDA-only countries, paying special attention to Fragile Conflict Situations. We nonetheless think that the best way to promote private sector activity in these areas is to address the challenges related to institutional capacity and regulatory framework. 4.