Multilateral Development Banks

Finance Minister Nirmala Sitharaman held a meeting with the G20 Independent Expert Group (IEG) focused on strengthening Multilateral Development Banks (MDBs). Co-convened by former U.S. Treasury Secretary Lawrence Summers and ex-Chairman of the 15th Finance Commission N K Singh, the G20 IEG, established during the G20 India Presidency, presented Volume 1 of its report, which was acknowledged in the New Delhi Leaders Declaration earlier this month.

Currently in India, the #G20IEG members are working on Volume 2 of their report, which will be discussed during G20 meetings scheduled under the Indian Presidency in Marrakech, on the sidelines of the IMF and World Bank Annual Meetings. India’s G20 Presidency will host the fourth and final Finance Ministers and Central Bank Governors (FMCBG) Meeting next month in Morocco.

According to the IEG, MDBs need to provide an additional $260 billion annually to fund sustainable infrastructure and assist nations in achieving Sustainable Development Goal (SDG) targets, as outlined in their Volume 1 report. By 2030, an estimated $3 trillion per year in additional spending is required, with $1.8 trillion allocated to climate action, particularly in sustainable infrastructure, and $1.2 trillion for attaining other SDGs.

Key MDBs include the World Bank, International Finance Corporation (IFC), Asian Development Bank, Asian Infrastructure Investment Bank (AIIB), Inter-American Development Bank (IDB), and African Development Bank (AfDB).

Re-reported from the article originally published in The Deccan Herrald