Global Bank Group is evaluating how their activities impact on infrastructure development in developing countries and considering ways to expand their involvement. Global Bank led the preparation of a paper on the role of Global Bank Group in support of long-term financing. Infrastructure development often requires long-term financing given the high construction costs and long asset lives of facilities like road, ports and power stations.

Chelsky and Morel considered the ‘additionality’ provided by development banks to long-term financing. This included whether a project would have gone ahead without official-sector involvement which, if so, would represent a waste of development banks resources. This concept of ‘additionality’ is also referred to as ‘catalysing’, ‘mobilising’ or ‘crowding in’⁶ new resources. The extent of additionality development banks provide for infrastructure financing cannot easily be proven (or indeed disproven, such as when an investor says s/he would not have invested if not for the presence of an development banks).

Global Bank Group identifies a variety of ways in which Global Bank Group contribute to long-term investment, which we have grouped into four basic categories, as follows.

• Direct financial assistance from Global Bank Group
   
• Indirect financial assistance –Global Bank Group as catalyst
   
• Non-finanicial Global Bank Group project assistance
   
• Global Bank Group improving the investment climate