Good morning.
The CEOs of Bridgewater Associates and Global Citizen will announce plans today to host an economic summit with the government of Côte d’Ivoire and Harith General Partners in Abidjan on Oct. 9 and 10. What’s surprising is why: to support the 21st Replenishment of the World Bank’s International Development Association (IDA21). That’s the process, once every three years, in which donor countries are asked to fund IDA’s grants and low-interest loans to 75 of the world’s poorest economies.
World Bank President Ajay Banga has asked countries to step up financial support for IDA21 at a time when public support for foreign aid is muted, divided, and distracted by everything from domestic elections to geopolitical tensions around the world. National debt levels have soared amid higher interest rates, with more defaults in the past three years than the prior 20.
At the same time, Gen Z adults are increasingly skeptical about capitalism but influenced by celebrity, which creates an opportunity for business to shift the narrative. Global Citizen CEO Hugh Evans’s message to young people is “yes, stakeholder-conscious capitalism has the potential to alleviate poverty, but it has to be done in a way that is conscious of the unintended consequences that it can have on vulnerable and underserved communities.”
Known for its high-profile music festival, Global Citizen will lead a campaign to galvanize citizens to urge their leaders to provide extra funding to IDA, emphasizing the potential to spur lasting growth in Africa and lift 300 million people out of “energy poverty”—ie. lacking access to sustainable energy.
Bridgewater CEO Nir Bar Dea says his hedge fund will publish a series of research studies to highlight data on the economic potential of Africa and ripple effects on the global economy. “In a very polarized society, it’s important to be a reliable source of objective, evidence-based truth,” says Bar Dea. And why fund through IDA? Where there’s public-sector leadership and investments in infrastructure, he says, private-sector funding will follow.
That’s where the World Bank needs help—and a push. There’s confusion about the bank’s mission; debates about its bias, power, and purpose. Critics say a scarcity of low-cost capital from the World Bank has forced poor countries to pay high borrowing costs on the private market instead of investing in technologies, talent, and infrastructure.
That creates a compelling case for engaging consumers on the issues and on understanding the role of the bank itself. They still might not like what they see. Banga, the former CEO of Mastercard, points out that IDA has 1,100 different rules versus 150 two decades ago. Many inspiring missions, mired in the weeds of bureaucracy, get untangled when people start paying attention.
More news below.
Diane Brady
@dianebrady
diane.brady@fortune.com
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AROUND THE WATERCOOLER
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This edition of CEO Daily was curated by Nicholas Gordon.
