When should the World Bank use public resources to support private sector activity?
Álvaro S. González proposes a test centered on market failure, changing behavior, and additionality—and finds 21 operations representing $3.2B fail at least one hurdle.
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A Rule for Private Sector Subsidies: Additionality and Competitive Allocation at the World Bank Group
The World Bank has yet to pin down a working definition for what it labels as private sector development (PSD). At different times during the past half-century, some of that work might reasonably be d...