Released today, the commission's new report called for extensive changes in longstanding MDB practices. Loans from MDBs can encourage public investments, such as in education and health, with high social and economic returns.
Lending promotes useful policy changes and adherence to international standards .
Officials from countries such as Mexico, Turkey, Thailand, and Korea repeatedly have said they highly value the economic analysis of MDB staff and the dialogue on tough internal policy and budget choices that accompanies the lending process. For the United States and other non-borrowing member countries of the MDBs, the benefits of MDB lending to EMEs are substantial and are not costly to their taxpayers . In an increasingly interdependent global economy, non-borrowing members of the MDBs have a substantial stake in the policy choices of the EMEs, whose social and economic decisions affect the residents of rich countries. Meanwhile, the cost to the United States and other non-borrowing members is surprisingly small. Lending to emerging markets does not crowd out, but rather indirectly supports, lending to poorer countries .