World Bank to consider 27 of 30 G20 proposals to strengthen MDBs

World Bank reform: Finance Minister Nirmala Sitharaman on Monday said the World Bank would seriously consider 27 out of 30 proposals submitted by the independent expert group of G20 to strengthen the multilateral development banks. The review is important in light of global development challenges.

The policy recommendations have been presented as a holistic three-pronged reform agenda under the 2023 Indian G20 Presidency. It has called for three mandates for a more ambitious MDB agenda, including the aim to eliminate extreme poverty, deliver shared prosperity, and contribute to global public goods. In addition, it has sought to triple the sustainable lending to levels of $2 trillion by 2030 and pushed for a new funding mechanism providing for innovative financial arrangements with investors interested in supporting MDB initiatives.

This has come at a time when Sitharaman and Nick Stern, member of the G20 Independent Expert Group, were discussing these recommendations at a recent meeting as extremely important. The finance ministry highlighted through X (formerly Twitter) that the World Bank is responding to the proposed reforms by strides under its Evolution Agenda.

Stern appreciated the G20 India Presidency for bringing to centre stage the voice of the Global South in international discussions. Officials stressed climate finance and the flow of technology from developed to developing countries as a critical component of enabling such initiatives of ambitious climate action.

This open-ended discussion reiterates the will in reforming MDBs so that they would be more responsible towards the challenges posed by urgent needs in global development, including climate change. In setting financial tools in line with development objectives, the World Bank and member countries of the G20 believe there will be a more inclusive and sustainable global economy, as it is able to use resources in ways that are very impactful for the most vulnerable populations.