In a significant move to strengthen global public asset management frameworks, the World Bank’s Executive Directors approved the relaunch of the World Bank Reserve Advisory and Management Partnership (RAMP). This decision will further enhance the effectiveness of public institutions managing substantial financial assets. The approval of the new program brings with it expanded eligibility criteria, a broader scope of services, and a focus on shared developmental goals—key objectives aligned with the World Bank’s mission to reduce poverty and support sustainable development.
Originally launched in 2001 and reauthorized in 2012, the RAMP program was designed to support official sector asset managers by providing advisory, training, and asset management services. Initially focused on central banks, the Partnership has grown significantly, reaching a diverse membership of over 80 institutions globally, including sovereign wealth funds, public pension funds, deposit insurance corporations, and UN agencies.
Despite its success, however, it became clear that the evolving global economic landscape necessitated a more comprehensive and adaptive approach to public asset management, including the following:
- Rising global pressures: Governments worldwide face mounting fiscal challenges, exacerbated by the demands of post-pandemic recovery, climate change, and growing public debt. Public sector institutions need more sophisticated financial management strategies and expert advisory services to address these concerns to safeguard financial sustainability. Prudently managing foreign reserves is one aspect of this effort.
- Increased complexity of global financial markets: Financial markets are becoming more volatile, increasing the risks associated with asset management. The relaunch of World Bank RAMP aims to help governments and public asset managers navigate these complexities with more robust risk management practices and investment strategies.
- Alignment with Sustainable Development Goals (SDGs): The World Bank’s mission is deeply connected to the SDGs, emphasizing transparency, financial inclusion, and responsible investment. The RAMP relaunch seeks to align its services with these goals, helping countries maximize the impact of their financial assets in achieving development outcomes.
- Growing global demand for capacity building: Many low- and middle-income countries, particularly in fragile and conflict-affected regions, face significant challenges in managing public resources effectively. By expanding the scope of its services, RAMP can offer targeted support to these nations, ensuring that public assets are used to promote long-term economic resilience.
New Eligibility and Expanded Scope of RAMP
One of the key features of the relaunch is the expanded eligibility criteria, allowing more institutions to participate in the World Bank RAMP and access its specialized services. Historically, RAMP was open to central banks and select national entities, but under the new framework, the program will include a broader range of members:
- Subnational entities: Public asset managers at the regional or local level can now access RAMP’s advisory and asset management services, provided they have approval from their respective national governments. This opens new avenues for improving public asset management at various levels of government.
- International Organizations: RAMP now extends its services to multilateral and international organizations that share similar developmental goals to those of the World Bank. This expansion aligns with the World Bank’s broader strategy of fostering global cooperation and addressing transnational challenges like climate change and economic instability.
- Expanded Investment Management Services: In addition to advisory services, the World Bank Asset Management team will offer stand-alone investment management mandates to institutions with developmental objectives similar to the World Bank’s, which means they can now receive tailored asset management services that align with their unique goals and financial realities.
How the World Bank RAMP Supports Public Asset Managers Worldwide
The relaunch of RAMP represents a significant step forward in supporting public asset managers globally. RAMP empowers countries and institutions to build stronger, more resilient asset management frameworks by offering a demand-driven, cost-recovery model.
For example, RAMP’s advisory services promote best practices in asset management, helping institutions strengthen their governance frameworks, improve risk management strategies, and enhance the long-term sustainability of their portfolios. By adding capacity-building programs, RAMP can help public institutions train their staff, build internal competencies, and develop the technical expertise needed to manage public assets more effectively.
Moreover, RAMP provides technical assistance to public institutions in fragile and conflict-affected situations (FCS), particularly in countries eligible for assistance under the International Development Association (IDA). This support is critical for these institutions and countries, which may lack the necessary internal resources or expertise to manage their assets effectively. By improving the financial sustainability of public institutions, RAMP helps countries stabilize their economies, reduce poverty, and create the conditions for inclusive growth.
