Development Policy Financing (DPF) is a major instrument of multilateral development banks and has played a prominent role in the World Bank’s pandemic response. Also known as policy-based lending, DPF is a fast-dispersing instrument that provides non-earmarked funds to a country's national budget. How does DPF work and how successful has it been in achieving its various objectives? The World Bank’s Director of Policy Operations, Stéphane Guimbert, and IEG host Jeff Chelsky take stock of the trends and lessons of using policy-based lending to support developing economies.
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Related resources
- World Bank Report – 2021 Development Policy Financing Retrospective: Facing Crisis, Fostering Recovery (2022)
- IEG Evaluation – Addressing Country-Level Fiscal and Financial Sector Vulnerabilities: An Evaluation of the World Bank Group’s Contributions (2021)
- IEG Evaluation – World Bank Support for Public Financial and Debt Management in IDA-Eligible Countries (2021)
- IEG Evaluation – The International Development Association's Sustainable Development Finance Police: An Early-Stage Evaluation (2021)
Conversation highlights
[00:04-07:55] How does Development Policy Financing (DPF) and its prior actions work?
[07:56-14:44] What are key lessons emanating from the Bank’s fifth DPF Retrospective?
[14:45-20:07] The role of Development Policy Operations (DPOs) in crisis response.
[20:08-22:25] Measuring success – what makes a DPO good?
[22:26-25:08] The use of DPOs in countries affected by fragility, conflict or violence (FCV).
[25:09-27:30] Determining the size of a Development Policy Operation.
This Episode’s Featured Guests:
Manager, Country Programs and Economic Management Unit
Jeff Chelsky is Manager of IEG's Economic Management and Country Programs Unit.
Director of Policy Operations, World Bank
Stephane Guimbert leads the Bank’s operations policy reform and interpretation for all financing instruments (Investment Project Financing, Development Policy Financing and Program for Results) and Analytical and Advisory Services (ASA). As well, he provides guidance to staff on Country Partnership Frameworks (CPF), and oversee the Secretariats for the Operations Committee (OC) and for the Vice Presidents on Operational Matters (OVP) meetings. He also works to establish partnerships with other MDBs and development partners.
