Public Development Banks as Essential Infrastructure: Covid, the KfW, and Public Purpose

Abstract

The sudden impact of the Covid-19 global pandemic threw societies into crisis, with their capacity to respond effectively dependent on existing public infrastructure. This article examines the case of Germany and its large public development bank, the KfW, during the pandemic. This paper argues that the KfW’s pandemic responses substantiate the bank as ‘essential public infrastructure’ and, moreover, as one that can function according to public purpose. That is, the KfW functions were essential to enabling society to respond to Covid-19 according to public purpose that was in the public interest. The lessons of the KfW, Covid-19, and public purpose have relevance to the future of public development bank financing of green and just transitions.