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1 For the 20th Replenishment of the International Development Association (IDA20) cycle, Human Development was added, the Governance and Institutions special theme was dropped (and governance became a cross-cutting issue), and the other four special themes remained the same. We did not analyze the Human Development theme, which was added only for IDA20, because only one year has passed in this cycle.

1 According to the project documentation for projects 14595, 14574, and 14583.

2 Three countries eligible for the Private Sector Window (PSW; Eritrea, the Syrian Arab Republic, and Zimbabwe) are not included in this count of 67 PSW-eligible countries. According to the list of PSW-eligible countries, these countries are tagged as “inactive”—that is, they have no active International Development Association (IDA) financing because of protracted nonaccrual status.

3 These 26 countries are the Central African Republic, the Comoros, the Republic of Congo, Djibouti, Dominica, Fiji, The Gambia, Grenada, Guinea-Bissau, Guyana, Honduras, Kiribati, Lesotho, Malawi, Maldives, the Marshall Islands, the Federated States of Micronesia, Papua New Guinea, São Tomé and Príncipe, Sierra Leone, the Solomon Islands, Somalia, Sudan, Tonga, Tuvalu, and Vanuatu. These 26 countries collectively account for 7 percent of the total GDP of all 67 PSW-eligible countries.

4 Calculation excludes regional projects .

5 Analysis controls for income levels, regional factors, and duration since first PSW-supported commitment.

6 “New sectors” refers to sectors (at the secondary sectoral classification level) that the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) had never invested in within a specific PSW-eligible country before PSW.

7 The difference is statistically significant at the 5 percent level.

8 This estimate is based on the subset of the IFC and MIGA PSW portfolio for which we have data on capital mobilization, but it is broadly consistent with the estimates reported in the 20th Replenishment of IDA (IDA20) PSW Mid-Term Review.

9 For the IDA20 cycle, Human Development was added, the Governance and Institutions theme was dropped, and the other four special themes remained the same. We did not analyze the Human Development theme, which was added only in IDA20, because only one year has passed in this cycle.

10 For our review, we counted a project as addressing a specific special theme if it was mentioned in the project description or development impact section in Board approval documents or there was any indicator tracked that was related to the special theme.

11 This contribution to jobs and economic transformation was demonstrated by the employment and economy effects and competitiveness (number of new entrants) indicators tracked as part of the Anticipated Impact Measurement and Monitoring indicators. A larger percentage of the projects (mostly the Financial Institutions Group) had indirect effects on supporting the jobs and economic transformation agenda by improving access to finance for underresourced micro, small, and medium enterprise businesses or housing finance. The rationale was that improving finance to micro, small, and medium enterprises would in turn increase job creation because these businesses are “important sources of job creation.”

1 IDA’s balance sheet is predominately capital and long-term loans to IDA governments. Setting aside PSW capital can be used to cover guarantees to IFC or MIGA or pay Local Currency Facility payment obligations under contracts with IFC. Because IDA has very little debt, spending capital does not affect its credit ratings in the same way it would affect IFC or MIGA. As of June 2023, IFC has liabilities of $75.5 billion and capital of $35 billion for a leverage ratio of 2.1:1. MIGA has liabilities of $1.5 billion and capital of $1.7 billion for a leverage ratio of 0.92:1. Finally, IDA has liabilities of $41 billion and capital of $185.8 billion for a leverage ratio of 0.22:1. Thus, IFC is 10 times more leveraged than IDA, MIGA is 4 times more leveraged than IDA, and IDA has 5 times more capital than IFC and MIGA combined. This means that IDA’s lower-leverage and much higher capital can enable the PSW set-asides to support IFC and MIGA to operate in IDA countries using IDA’s capital so that IFC’s and MIGA’s ratings are not affected.

2 The only data available at this time on results come from the draft IDA Mid-Term Review (DFCII 2023): “As of [June] 2023, only a few IFC projects have closed or matured and two IFC platforms, namely the Working Capital Solutions and the Global Trade Finance Program I, have reached expiration of their investment period, for a total Board-approved amount of $500 million. Reflows from these projects and platforms are expected to include the full return of capital and have generated over $10 million of income as of June 2023 (including interests and fees and net Local Currency Facility trades).”