Thanks for motivating this important debate. The reason we are seeing the comeback of state banks is because private banks demonstrated during the crisis that they are also prone to the same incentives problems that have been used to argue against state banks. Therefore, it's difficult to use Professor Calamoris' reasoning to convince client countries not to create/restructure state-banks. I think we should have a balanced debate that brings examples of few successful public/development banks (e.g. DBSA of South Africa), explores what is unique about them, and discusses to what extent their experiences can be replicated.