The leaders of 10 multilateral development banks (MDBs) today announced joint steps to work more effectively as a system and increase the impact and scale of their work to address pressing development challenges.
In a Note on Viewpoint, the leaders presented the key outcomes expected from joint and coordinated action in 2024 and beyond, building on progress made since their meeting in Marrakech. declaration in 2023, as their institutions strive to accelerate progress towards the Sustainable Development Goals (SDGs) and to better help clients address regional and global challenges.
Published following a retreat hosted by the Inter-American Development Bank (IDB), which holds the rotating presidency of the MDB Leaders Group, the actions represent strengthened collaboration among the MDBs. The note will also be a valuable contribution to the upcoming G20 roadmap to move the MDBs towards a “better, bigger and more efficient” system and in other forums.
MDB leaders committed to delivering concrete and achievable results in five critical areas:
1. Increase the financing capacity of MDBs. MDBs expect to generate an additional credit line in the range of $300 billion to $400 billion over the next decade, with support from shareholders and partners. Actions include:
Offer a diverse set of innovative financial instruments to shareholders, development partners and capital markets, including hybrid capital and risk transfer instruments, and promote the delivery of IMF Special Drawing Rights (SDRs) through MDBs. Provide more clarity on callable capital, which would help rating agencies better assess the value of callable capital. Continue to implement the recommendations of the G20 Capital Adequacy Framework (CAF) review and report on related reforms.
2. Stimulate joint action against climate change. MDBs strengthen their shared commitment to climate change. Actions include:
3. Strengthen collaboration and co-financing at the national level. MDBs engage in discussions and support country-owned or country-led platforms to facilitate country collaboration with banks. Actions include:
Evaluate proposals for country-led and country-owned platforms for common understanding and next steps, including for some MDBs to implement platforms. Continue to harmonize procurement practices, including building on each other’s procurement policies to reduce transaction costs and increase efficiency and sustainability. Accelerate the co-financing of public sector projects thanks to the new Collaborative Co-financing Portal program.
4. Catalyze private sector mobilization. MDBs are committed to increasing private sector financing for development goals, including by seeking innovative financial approaches and instruments. Actions include:
Increase local currency lending and foreign exchange hedging solutions to stimulate private investment. MDBs strive to identify scalable approaches. Expand the type and breakdown of statistics published by MDBs and Development Finance Institutions (DFIs) in the Global Emerging Markets Risk Database (GEMs) Consortium, helping investors better assess risks and opportunities ‘investment.
5. Improve development effectiveness and impact. MDBs agreed to place greater emphasis on the impact of their work. Actions include:
Increase collaboration on joint impact assessments, including by sharing approaches to impact monitoring and evaluation, and pursuing harmonization initiatives where useful. Take stock of the key performance indicators (KPIs) on nature and biodiversity currently used and explore the feasibility of aligning certain indicators before COP30 in 2025.
For more details, see the Viewpoint Note.
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