December 2 to 9, 2024
UK increases World Bank contribution, boosting climate finance prospects
Anneliese Dodds announced that the UK will pledge £1.98bn in funding to IDA over three years, an increase of about 40% on its previous pledge.
Croatia Strengthens Support for Global Development: Increases Pledge to IDA21 by 115%
Croatia announced that it would enhance its IDA pledge by 115%.
Last Chance for the SDGs?
Key donors must carry their weight at the World Bank’s IDA replenishment to accelerate progress on the SDGs.
PM Anwar calls for overhaul of global financial system, criticises Global North’s exploitation of Global South
The PM of Malaysia said that the Bretton Woods institutions “serv[ed] the Global North at the expense of the Global South” in a keynote address in Madrid.
On Climate, Paying Now Is Cheaper than Paying Later
The MDBs are the most viable route to meeting COP29’s $300 billion goal, and its achievement depends on reform of the international financial architecture.
Industrial policy's rebirth could endanger emerging economies, warns EBRD
State intervention is soaring in sub-Saharan African nations bidding to join the EBRD, bringing "significant risks," the bank fears.
Powering progress? The World Bank's role in delivering equitable and sustainable energy solutions through IDA21
An analysis of IDA’s energy portfolio from 2013-2023 finds that 75% of funding for energy projects was loans and the type of energy was not made clear in 54% of these projects.
AIIB chief says London ‘one of the hopefuls’ for European finance hub
Jin Liqun, president of the AIIB, said London was among the cities vying to host a European funding and trading hub for the bank.
World Bank nears $100bn target as 16 new donors join IDA replenishment drive
16 new donor countries, including Brazil, are expected to pledge funds for the ongoing IDA21 replenishment in South Korea.
Italy and African Development Bank sign $420 mln co-financing deal
Italian state lender CDP and the AfDB signed a co-financing deal worth €400 million to promote climate finance, sustainable farming, and technical assistance.
Côte d’Ivoire’s Debt-for-Development Swap, Enabled by the World Bank Group, Will Free up Funds for Education
With support from the World Bank Group, Côte d’Ivoire will complete a debt-for-development swap to create fiscal space and spending on education.
World Bank reaches $100bn funding target but faces Trump challenge
At the IDA21 replenishment in South Korea, the Bank said it met its $100 billion target though donor contributions remained flat (roughly $24 billion).
EBRD to Transfer Risk Tied to $1 Billion of Private-Sector Loans
The EBRD is working on its first-ever deal to offload balance sheet risk to institutional investors and free up funds for social and environmental lending.
Morocco to get loan for 2030 World Cup infrastructure
The AfDB will lend €650 million to Morocco to develop transport infrastructure ahead of the 2030 World Cup.
Incoming ADB Chief Kanda Keeping Eye on US Policy as Trump Looms
In an interview, the ADB’s incoming president said that US policy will be a key focus as he monitors its impact in the region.
Ivory Coast turns to World Bank to replace costly debt
The World Bank will underwrite a loan for Ivory Coast to replace costly bonds less than a year after the country paid high rates to tap markets.
World Bank calls IDA pledges a win. Critics aren’t so sure
While the Bank struck a celebratory tone on the $23.7 billion in contributions to this year’s IDA replenishment, many (including our very own Clemence Landers) are disappointed by the outcome.
A Roadmap for Unlocking the Potential of Multilateral Development Banks Exists – and the G20 Just Endorsed It
The G20 Roadmap on MDB reform calls for MDBs to cooperate, utilize country platforms, and introduce resource needs reviews, among many other recommendations.
November 25 to December 1, 2024
AfDB’s Adesina Seeks Debt Deal for Zimbabwe Before Tenure Ends in August 2025
Adesina aims to clinch a deal to restructure Zimbabwe $21 billion debt before his AfDB presidency concludes in August.
Multilateralism faces a toxic brew of debt, climate crisis and war. It’s time for a reboot
Next month’s IDA replenishment offers a chance for developed countries to recommit to multilateral solutions to the climate and debt crises.
ADB approves $500 mln loan for Philippines' climate change efforts
The loan will help accelerate reforms to put sectors like agriculture, natural resources, energy, and transport on a climate-resilient and low-carbon path.
Three presidents on the partnerships that can at last transform Africa
IDA has become the single largest source of low-cost international financing for many of the world’s poorest countries, and it is critical that it takes an ambitious approach during its December replenishment meeting.
CABEI participates in the MDB Project Plaza for three consecutive years
The Central American Bank for Economic Integration (CABEI) took part in the Multilateral Development Bank (MDB) Project Plaza 2024 to showcase its project opportunities to Korean companies seeking to expand their ventures into Central America.
MDBs Have Yet Delivered on their Promise
Multilateral Development Banks (MDBs) have faced criticism for falling short of their commitment to delivering significant development outcomes in some of the world's poorest areas.
Akinwumi Adesina: the African Development Bank you see today is different
When Akinwumi Adesina took over as president of the African Development Bank in 2015, its capital stood at $93 billion. Nine years later, with $318 billion in capital, he proudly asserts, “The Bank you see today is different.” His major achievement has been securing shareholder support to strengthen the Bank’s capital, ensuring its resilience. However, in an interview at COP29 in Baku, Azerbaijan, he emphasizes that significant challenges remain.
Masato Kanda elected as ADB President
The Asian Development Bank (ADB) Board of Governors has unanimously selected Masato Kanda as its 11th President.
Multilateral Development Banks united to End Violence Against Women
Leading multilateral development banks are committed to collaborating with diverse stakeholders to prevent GBV, support survivors, and enhance access to justice. They pledge to expand programs addressing violence and work collectively with governments, civil society, and the private sector, aligning efforts with their mandates.
November 18 to 24, 2024
G20 talks in Rio reach breakthrough on climate finance, sources say
RIO DE JANEIRO, Nov 17 (Reuters) - Diplomatic tensions over global warming spilled over into the G20 summit negotiations in Brazil this week, with sources saying the 20 major economies reached a fragile consensus on climate finance that had eluded U.N. talks in Azerbaijan.
What’s in the G20 road map to transform multilateral development banks?
The G20 roadmap on MDB reform centers on increasing financing, supporting country platforms, and strengthening impact, while issues around debt and institutional governance were left out.
November 11 to 17, 2024
Fostering a Global Public Financial Ecosystem for Development and Climate Action
This T20 Brief explores how the international financial architecture has not mobilized the long-term, low-cost, and stable finance needed to facilitate green and just transitions, to achieve the Sustainable Development Goals (SDGs), or to fulfil the Paris Agreement. This is due to an over-reliance on and the under-performance of private finance and an under-appreciation for and the under-utilization of global public banking capacity to confront the challenge. Policymakers should call on public national development banks (NDBs) and multilateral development banks (MDBs) to begin fostering a global public financial ecosystem grounded in accountable public-public collaboration.
What MDB climate finance is actually being spent on and where
Climate finance from multilateral development banks (MDBs) is funding fossil fuels and highly polluting projects, and failing to prioritise the most climate-vulnerable countries, according to new research by international organisation Recourse published at the UN climate summit.
November 4 to 10, 2024
Oxfam says $41 billion of the World Bank’s climate spending ‘effectively unaccounted for’
An Oxfam report alleges that poor record-keeping practices at the World Bank make it “impossible” to verify its expenditures and impact on climate finance.
Advancing Asia’s Priorities on Climate and Development: Takeaways from UNGA and the World Bank–IMF Annual Meetings
Both the AMs and UNGA were missed opportunities for regional collaboration among Asian countries on issues related to climate and development.
October 28 to November 3, 2024
Major donors expected to increase IDA funding pledges, World Bank says
The Bank is expecting donors to raise their pledges to its fund for low-income countries, van Trotsenburg said. Asked about the $120 billion target, he said this was one possible scenario, but “certainly a higher one.”
Looming Debt Spiral in Emerging Markets Tests IMF and World Bank Safety Net
Amid higher debt and borrowing costs, the IMF and World Bank unveiled a three-pronged approach to help countries overcome the liquidity crunch
Ridiculous decarbonization: The absurd spectacle of a tiny country’s climate plan at the World Bank
At the Annuals, Sao Tome and Principe presented their decarbonization plan. But the tiny, extremely poor archipelago doesn’t need a decarbonization plan—it needs a growth plan.
Where Financial Innovation Meets Sustainable Development
MDBs must encourage the standardization of innovative instruments and their integration into developing countries’ economic policy.
ADB Issues its First Biodiversity and Nature Bond
The ADB issued its first biodiversity and nature theme bond ($100 million, 10-year issue) to finance a pool of eligible projects across Asia and the Pacific.
From:
ADB
Spain Announces Early Financial Commitment of €400 Million to IDA, a Near 40% Increase in Pledge
Spain announced a financial commitment of €400 million to IDA, a 37% increase over the last replenishment cycle.
Sweden, Iceland Commit to World Bank’s Hybrid Capital
Sweden and Iceland announced commitments to invest in the Bank's hybrid capital, joining 13 other countries whose pledges now total over $11.7 billion.
World Bank Group Announces Strategic Pivot in Agribusiness, Doubles Financial Commitment
The Bank will double its commitments for investments in agricultural financing and businesses to $9 billion a year by 2030, Banga announced.
Energizing MDB Financing Capacity
A new report commissioned by the Brazilian Presidency of the G20 finds that while MDBs have made important strides toward increasing their lending headroom, more ambition will be necessary to achieve development and climate goals.
October 21 to 27, 2024
G20 must step up aid to world’s poorest countries
A group of prominent economists called on G20 members to increase their contributions in IDA21 by at least 20 percent.
World Bank acts to boost lending capacity by $30 billion over 10 years
The Bank voted to change the IBRD's internal lending guidelines, freeing up $30 billion in additional lending capacity over the next decade.
Banga says Trump understands value of international financial institutions
Banga “struck a sanguine tone” when asked about a Trump presidency, saying that Trump understands the value of IFIs and how their lending can expand markets for US products.
New World Bank Corporate Scorecard: overlooking client priorities and ignoring development impact
The World Bank’s new scorecard neglects to measure the institution’s contribution to countries’ economic transformation, a key priority for low- and middle-income countries.
October 14 to 20, 2024
World Bank Sees Raising Record-Breaking Funds for Poor Nations ‘Challenging’
The World Bank faces a “challenging” task in raising a record amount of money for its IDA replenishment, a top official said.
Treasury official says withdrawing the US from the IMF and World Bank would be a ‘step backward’
Jay Shambaugh reaffirmed the US’s commitment to membership at the IFIs, alluding to a Project 2025 proposal for the US to withdraw from the institutions. His full remarks can be accessed here.
Major MDBs Have Rating Headroom for USD480 Billion in New Lending
Major MDBs could increase lending by nearly $480 billion collectively before the decline in capital positions would lead to downgrades, Fitch Ratings said.
Can the world’s most influential business index be fixed?
The Bank’s new Business Ready (B-Ready) index overcomes the Doing Business reports’ imprecision and methodological deficiencies, though some subjectivity remains.
World Bank board approves new Ukraine fund, with money from US, Japan, Canada, sources say
The World Bank's executive board approved the creation of a financial intermediary fund (FIF) to support Ukraine, with contributions expected from the United States, Canada, and Japan.
Ecuador nature deal scrutiny has not slowed work on debt swaps, IDB says
An inquiry into Ecuador's landmark debt-for-nature swap has not slowed work on the increasingly popular instruments, IDB President Goldfajn said.
October 7 to 13, 2024
World Bank looking to free up emergency funds for Lebanon, managing director says
The World Bank is looking to free up emergency funds for Lebanon, potentially including up to $100 million through the use of special clauses in existing loan deals, its managing director of operations said.
After Bretton Woods?
The conditions for a major reform of the Bretton Woods institutions, or the creation of new institutions to take their place, is not propitious.
The IMF, World Bank, and WHO Step Up Cooperation on Pandemic Preparedness
A new cooperative effort will help countries detect and respond to public health threats using financing from the IMF’s Resilience and Sustainability Trust (RST), with further financial and technical support provided by the World Bank and WHO.
Pinning hopes on MDBs
In the absence of any further change in capital and/or re-channeling of SDRs, even the most optimistic estimates suggest that MDBs can finance only a small part of climate-related requirements of LMICs.
B-Ready: ITUC condemns World Bank’s newly launched Index for its “dangerous” ranking of countries’ labour policies
The ITUC condemned the Bank’s new “B-Ready Index” for effectively promoting a race-to-the-bottom on labor right, working conditions, and social protection.
September 30 to October 6, 2024
Barbados PM Mottley calls for new World Bank emergency liquidity facility
Barbados will call for creation of a new World Bank finance facility to provide emergency liquidity to climate-vulnerable countries in a third draft of the Bridgetown Initiative.
Global South countries rally around Bridgetown 3.0
The Bridgetown initiative released “Bridgetown 3.0,” the third draft of its ambitious multilateral overhaul that would free up more money for developing countries in climate crises.
NGOs boycott AIIB annual meeting, citing a ‘troubling pattern of exclusion’ of impacted communities
A global coalition of 250 NGOs has declined to participate in the AIIB’s annual meeting, citing a “troubling pattern of exclusion” of the voices of local communities impacted by its projects over the years.
Project 2025 takes on the World Bank and IMF – harbinger of an uncertain new era of geopolitics?
Project 2025’s proposal to withdraw from the Bank and the Fund emphasizes the uncertainty that surrounds the ultimate shape of a new multilateral order.
To Be “Better” The World Bank Must Center Citizens
A focus on spending without sufficient citizen engagement and civil society support will only undermine the development outcomes the Bank is trying to achieve.
World Bank Seeks LGBTQ Compromise to End Uganda Loan Freeze
The World Bank is working with Uganda to try and restore funding, which was halted after the country passed repressive anti-gay legislation.
Asian Development Bank Set to Welcome Israel as New Member Despite Some Staff Concerns
Israel is set to become the newest member of the ADB, even though some member countries have been outspoken in their criticism of Israel’s ongoing military campaign in Gaza, and some don’t even recognize Israel’s sovereignty.
China’s ‘World Bank’ gives backing to wave of renminbi bonds
The AIIB is giving its backing to what it believes will be a wave of renminbi bonds issued by developing nations wanting to tap Chinese investors.
VP of China-based AIIB says bank has proven doubters ‘100% wrong’
In an interview, AIIB’s vice president said that the AIIB is “a multilateral bank… not a Chinese bank” and that it hasn’t undermined the existing multilateral finance system.
September 23 to 29, 2024
Denmark pledges $491.7 million to World Bank IDA fund for poorest countries
Denmark pledged to contribute about $491.7 million to the Bank's latest replenishment of its fund for the poorest countries, a 40% increase over the country's previous contribution.
World Bank's IFC investments hit record $56 bln in FY 2024, managing director says
Investments from the Bank's private investment arm hit a record $56 billion in its financial year to end-June. IFC commitments also rose 28% year-over-year.
Indonesia: UN experts warn of irreparable harm to Indigenous Peoples’ rights ahead of AIIB loan disbursement
The AIIB-backed Mandalika urban development project in Indonesia risks irreparable harm to Indigenous Peoples’ rights, UN experts warned.
A Critical Assessment of the World Bank’s Climate Change Action Plan
As Bank staff deliberates on a new climate strategy, or Climate Change Action Plan (CCAP), they have the chance to take a truly transformative approach by excluding finance for fossil fuels.
In the Eye of the Storm
In the aftermath of Hurricane Beryl, six Caribbean countries activated their CRDCs, deferring loan payments.
World Bank climate finance reaches record $42.6 bln in fiscal 2024
The World Bank said it delivered a record $42.6 billion in climate finance during fiscal 2024, a 10% increase over the $38.6 billion the prior year and close to its target of a 45% share of total financing devoted to climate projects.
September 16 to 22, 2024
UK to give Asian Development Bank guarantee to unlock climate finance
The UK will provide a guarantee for the ADB to help unlock more than $1 billion of climate finance for developing countries.
Zambia Eyes World Bank Catastrophe Funds by Year-End for Drought
Zambia has asked the Bank to frontload an existing funding program and approve a new catastrophe financing line to help deal with the fallout from an historic drought.
September 9 to 15, 2024
Pacific Island Leaders Call for Bold Action to Replenish IDA
In the joint statement, island leaders called for a robust replenishment of IDA and endorsed the Bank’s ambition to channel 45% of its financing into climate-related activities.
From Peru to Tuvalu: World Bank chief says global lender must change
After a trip to the Pacific islands, Banga said the Bank must become “faster, simpler, and more impact oriented” to deal with the intertwined challenges of climate and fragility.
Japan nominates ex-currency diplomat Kanda to head Asian Development Bank
Japan will nominate Masato Kanda, the country’s former top currency diplomat, as its candidate to become next head of the ADB, Finance Minister Shunichi Suzuki said.
September 2 to 8, 2024
Inside EBRD's €14.9B pipeline in 2023
The EBRD reported 311 projects worth €14.9 billion in its pipeline for 2023, a slight increase over 2022.
What’s in the World Bank’s new $226B pipeline?
The Bank has 408 projects in its portfolio that are in these early pipeline stages, awaiting final approval. These projects have a cumulative project cost of $287.7 billion.
The International Development Association Meets in Nepal: Will it Help Finance South Asia Combat Climate Change Mitigation?
IDA’s third replenishment meeting was held in Kathmandu in June, with discussions centered around providing concessional loans, policy frameworks, outcome blueprints, and financial commitments for the next three years.
August 26 to September 1, 2024
The World Bank Is Failing and Needs a Restart
As global income divergence returns, the Bank must reckon with its shortcomings and seek to overcome them rather than finding new ways to be self-congratulatory.
African Development Bank, African Union Launch Landmark Initiative to Eradicate Malnutrition Across Africa
The AfDB and AU announced their collaboration on a new initiative termed the Multisectoral Nutrition Policy Framework (MNPF), which includes an investment target for combating malnutrition.
World Bank’s $6.5B Sustainable Bond Deal Shatters Records
The Bank successfully raised $6.5 billion through a dual-tranche Sustainable Development Bond issuance, marking its largest order book to date.
The AIIB’s $5 Billion Investment Pledge to Vietnam, Explained
The AIIB and its primary backer, China, are set to compete with the Japanese government in financing major infrastructure in Vietnam
August 12 to 18, 2024
World Bank Group Launches High Level Council to Tackle Looming Jobs Crisis
The WBG announced the High-Level Advisory Council on Jobs, a new initiative to identify actionable policies to address the looming jobs crisis in the Global South. The Council will be co-chaired by President Tharman of Singapore and former President Bachelet of Chile.
Development Banks defend use of Special Drawing Rights to finance Alliance Against Hunger
The IDB and AfDB have proposed financing the newly announced G20 Global Alliance against Hunger and Poverty using hybrid SDR capital.
From:
G20
AIIB joins World Bank, EBRD in setting out plans for ISSB reporting
The AIIB intends to start reporting in line with the International Sustainability Standards Board’s (ISSB) standards on climate and broader sustainability factors.
August 5 to 11, 2024
Disaster Response Isn’t Keeping Up with the Climate Crisis
Hurricane Beryl exposed how global financial frameworks are falling short in the face of increasingly frequent and intense storms.
World Bank says assessing impact of Bangladesh events on its loan program
In June, the Bank approved two projects totaling $900 million in Bangladesh. It said it was closely following the unfolding situation to monitor its investments and Bangladesh’s development.
World Bank Advises Cameroon to Collect More Tax and Spend Better
Cameroon has improved its fiscal situation by cutting public investment, but the Bank said that well-targeted spending will be necessary to boost growth.
July 29 to August 4, 2024
Pandemic Fund Kickstarts Resource Mobilization with $667 million from the United States
The US pledged up to $667 million and Germany pledged $54 million to the Bank’s Pandemic Fund on the sidelines of the meeting of G20 finance ministers in Rio.
African Development Bank’s Akinwumi Adesina briefs African leaders on Bank’s progress in mobilizing financial resources for the continent
Adesina highlighted the AfDB’s general capital increase from $201 billion to $318 billion among major recent successes in mobilizing financial resources for Africa’s development needs.
EBRD says Ukraine exposure 'absolutely not' a threat to credit rating
The EBRD’s VP for Banking said the bank was “absolutely not” concerned that Ukraine exposure could threaten its triple-A credit rating.
July 22 to 28, 2024
How the World Bank is using AI
From streamlining its operations to helping analyze ESG data, the Bank is expanding its use of AI both internally and externally.
Why we cannot celebrate the World Bank’s 80-year anniversary
Too often, the Bank’s development projects lack the safeguards and accountability mechanisms to ensure that they align with the interests of local communities.
July 15 to 21, 2024
World Bank eyes first 'drought' bond in next 12-18 months
The Bank is looking to issue its first drought bond in the next 12-18 months and broaden its offering of catastrophe bonds, a senior executive said.
At 80, Bretton Woods needs a makeover to fight climate change
Reforming the global financial architecture holds the key to enhancing support for nations grappling with climate change. CAF reforms and SDR rechanneling and vital steps toward substantive change.
New platform leverages power of guarantees to boost private financing
MIGA’s new guarantee platform will provide credit guarantees (for loans to the public or private sector), political risk insurance (for private sector projects or public-private partnerships), and trade finance guarantees for public sector risk.
World Bank dollar lifeline for Pacific islands proceeds with US, Australia push
The World Bank is preparing a financial lifeline for Pacific Island nations, backed by the US and Australia, as an exodus of Western banks from the unprofitable market prompts concern that China could fill the vacuum in the region.
World Bank new scorecard: will counting emissions drive climate progress or business as usual?
The Bank’s scorecard has the potential to drive climate ambition across WBG investments, though creative accounting of emissions could undermine its integrity.
July 8 to 14, 2024
What the new World Bank scorecard gets right about income poverty – and less right about energy poverty
A review of the Bank’s new performance scorecard finds that its energy ladder is getting better, but non-residential energy is still missing.
Policy gaps allow World Bank Group to indirectly finance captive coal
A new report finds that the IFC indirectly financed captive coal development in Indonesia despite a commitment to shift funds from fossil fuels to renewables.
‘Worst ever’ debt crisis puts IDA’s financial model at risk, underscoring need for ambitious donor contributions to IDA21 replenishment
A record-breaking replenishment is needed to prevent a deterioration in IDA's finances in the face of worsening global conditions.
World Bank launches $2.5B program to boost digitalization in Africa
A new Bank initiative aims to increase internet access and inclusive use of digital services to more than 180 million people across eastern and southern Africa.
US Treasury, USAID call in development banks for urgent talks on extreme heat
Treasury and USAID officials called leaders of MDBs into an urgent meeting aimed at finding ways to shift more resources toward helping countries build resilience and adapt to extreme heat.
June 24 to 30, 2024
Nepal calls for climate justice as IDA21 begin
Nepalese PM Dahal urged global lenders to provide climate justice and compensation via the IDA replenishment.
Smaller African development banks Preferred Credit Status under threat, JPMorgan warns
Some of Africa’s smaller MDBs, including the Africa Export-Import Bank (Afrexim) and the Trade and Development Bank (TDB), could be stripped of their preferred creditor status after not providing enough concessional loans.
How fossil fuel producers hit the World Bank’s jackpot
Polluters can bypass domestic courts and sue vulnerable states for lost profits using the ISDS arbitration system, leaving countries to pay out billions in compensation.
Europeans should bet on modernising the World Bank and IMF
Europeans have the tools to drive reform of the Bretton Woods institutions. In this decisive year for climate finance, now is the moment to strengthen the World Bank and IMF’s capacity to provide climate finance to developing countries.
June 17 to 23, 2024
African, Inter-American development banks on $20 bln IMF reserve asset donor drive
The heads of the AfDB and IDB are touring North America, the Middle East, Korea, and Brazil in a bid to secure $20 billion of SDRs which they want to turn into $80 billion of climate financing.
World Bank Mandates for a new Outcome Bond to support Amazon Reforestation
The IBRD has mandated HSBC to structure a new $200 million outcome bond to address reforestation efforts in the Brazilian Amazon.
Canada and ADB Launch New Fund to Support Private Sector Climate Action and Nature-Based Solutions
Canada is partnering with the ADB on a $360 million trust fund to support private sector projects focused on climate and nature-based solutions.
From:
ADB
Nigeria Gets $2.25 Billion Boost From World Bank
The Bank approved $2.25 billion in funding to support Nigeria’s economic reform efforts. The funds will be used to help stabilize the economy, assist the poor, and raise non-oil revenues, the Bank said.
June 10 to 16, 2024
Board Approves World Bank’s Role as Host and Trustee for the Fund for Responding to Loss and Damage
The Bank’s Board of Executive Directors approved the Bank’s role as interim host and trustee of the proposed loss and damage fund.
Global financial reform takes centre stage at African Development Bank annual meeting
The AfDB’s $117 billion callable capital increase is an important step, but progress must continue on SDR recycling, credit ratings, and DRM for Africa to achieve its development goals.
AfDB faces obstacles convincing IMF members to rechannel their reserve assets
The limitations of the AfDB’s SDR initiative are coming into focus, including problems attracting investors for whom SDR donation is politically feasible.
World Bank chief Ajay Banga's one-year climate report card
While Banga has made a lot of noise around climate, civil society groups remain critical of the Bank’s investments in fossil fuels and industrial livestock.
June 3 to 9, 2024
Greening the Bretton Woods Institutions
The responsibility for climate action rests with the shareholders of the BWIs, who must kick in additional financing to scale up climate efforts.
World Bank Group and IMF Deepen Joint Effort to Scale Up Climate Action
The Bank and Fund said they were deepening joint efforts to bolster climate action. The Bank said it would devote 45% of annual financing to adaptation and mitigation by 2025, while the Fund will continue efforts to operationalize the RST.
From:
IMF
Ruto, Kagame and Adesina call for ratings reform at AfDB Annual Meeting
At the AfDB annual meetings, African leaders said they thought lopsided and inaccurate risk profiling of the continent was a factor keeping them indebted.
Still Banking on Fossil Fuels
A new report explores AfDB’s investments in fossil fuels and how it could be reformed to promote the green transition, improve energy access, and challenge dominant approaches to development.
World Bank finds Chinese company committed violations in Bolivian infrastructure project
A Bank investigation into a Chinese-financed $230 million infrastructure project in Bolivia found violations of local labor laws and environmental damage.
Are Bretton Woods Institutions Doing Enough On Climate Action?
The Bank and the Fund are making progress but must do more to support the development of domestic capital markets and launch new instruments to enable international capital flows.
Still Haunted by the Washington Consensus
The specter of the Washington Consensus still haunts the global economy, impeding the emergence of a new development paradigm.
African Leaders Join African Development Bank’s Call for Action to Reform the Global Financial Architecture at its 2024 Annual Meetings
At the AfDB’s annual meetings in Nairobi, President Ruto supported AfDB President Adesina’s calls for international financial reform to mobilize climate and private finance.
The world needs a new financial architecture
Proposals including climate finance, global minimum taxation, quota reform, and others can help revitalize the global financial architecture.
China-Backed AIIB Eyes $1 Billion Africa Infrastructure Projects
The AIIB wants to increase its exposure to Africa and plans a $1 billion investment in infrastructure projects across the continent.
May 27 to June 2, 2024
Opinion: This data on loan performance in LMICs isn't the full picture
The Global Emerging Markets (GEMS) database must be disaggregated by year and country to help assuage investor uncertainty about investing in LMICs.
Why I Remain Optimistic About Global Economic Cooperation
At a speech in Venice, Georgieva said she remained very optimistic about global economic cooperation, though she recognized the prevailing headwinds.
Burundi Says World Bank Plans $75 Million Flood Buffer for City
The Bank will finance infrastructure to help counter record water levels in Lake Tanganyika.
May 20 to 26, 2024
How G7 Leaders Can Unlock Financing for Africa
Wealthy countries should help African countries escape cycles of debt and create fiscal space for investments in climate mitigation and adaptation.
Republic of Korea to host the World Bank’s IDA 21st Replenishment Final Meeting in December 2024
South Korea will host the final replenishment meeting for IDA21 in December, during which donors will report their pledges.
The AfDB at a crossroads: to keep funding fossil fuels or not?
At the AfDB annual meetings next week, AfDB leadership should commit to ending investments in fossil fuels and improving transparency.
EBRD approves membership of Kenya and Nigeria
The EBRD’s Board of Governors approved applications from Kenya and Nigeria at the annual meetings in Yerevan this week.
World Bank Seeks Outside Investigator for Inquiry Into Kenya Abuse Allegations
An outside firm will review the work of the Bank’s watchdog, the Compliance Adviser Ombudsman, after child sex abuse was reported at Bridge International Academies, a chain of for-profit schools in Kenya that received IFC funds.
May 13 to 19, 2024
The “Billions to Trillions” Charade
MDBs’ focus on mobilizing private investment is misguided, instead boosting government revenues will generate the trillions needed to close financing gaps.
Leveraging Islamic Finance for Sustainable and Resilient Infrastructure
Given Islamic finance’s asset-based and risk-sharing instruments, it could be a powerful tool for mobilizing infrastructure investments in developing countries.
World Bank has a role in changing the aid narrative on Africa
The Bank should seek to channel finance from Africa’s domestic capital pools into productive investments.
May 5 to 12, 2024
$5 Billion Asian Development Fund Replenishment Agreed to Support Most Vulnerable in Asia and Pacific
At the ADB’s annual meetings in Tbilisi, Georgia, donors agreed to a $5 billion replenishment of the bank’s Asian Development Fund, the ADB’s largest source of grants for its poorest and most vulnerable member countries.
From debt burden to economic resilience
Mavis Owusu-Gyamfi of the African Center for Economic Transformation said that key priorities for African countries included reforming SDRs, replenishing the IDA, and overhauling the Common Framework.
World Bank ready to ‘break new ground’ to host loss and damage fund
The World Bank said it could meet conditions to host the new L&D fund and indicated the fund could be up and running by COP29.
Unaccountable Adaptation: The Asian Development Bank’s overstated claims on climate adaptation finance
Oxfam released a report on the ADB’s adaptation finance, finding “significant discrepancies” in the bank’s reported figures. Oxfam claims that actual adaptation finance was 44% lower than reported by the ADB.
ADB backs Indonesia with US$600 million new coal funding despite climate pledge
A new study finds that the ADB is indirectly financing a coal power plant expansion in Indonesia.
World Bank’s climate plan: Pricier red meat and dairy, cheaper chicken and veggies
In a new paper, the Bank argues for repurposing the billions of dollars rich countries spend on cattle subsidies for more climate-friendly options. It calls to “drastically reorient” the global agrifood system, which it estimates would cut almost a third of global emissions.
$120bn isn’t enough. Here are 3 ideas for a truly bigger, better World Bank
As leaders call for a record replenishment of the IDA, there are three concrete ways to achieve much larger change.
April 29 to May 5, 2024
President Ruto to IDA: enhance concessional funding
President Ruto called for tripling of IDA’s financing capacity to $279 billion by 2030, while maintaining the essential concessional nature of its financing in accordance with the recommendations of the G20 Independent Expert Group.
African Leaders Unveil Bold Transformation Agenda at Summit, Backed by Powerful New Coalition
In a historic show of unity, 19 African Heads of State assembled at a major summit committed to focusing development aspirations across the continent. This ambitious agenda, aiming to dramatically improve lives and create new opportunities, positions the World Bank's International Development Association (IDA) as a cornerstone for success.
World Bank chief expects rich nations to meet African donation requests
World Bank President Ajay Banga said he expects donor countries to meet a request by African leaders to make record contributions to a low-interest facility for developing nations, saying these were not handouts but investments in the future. African heads of state called on Monday for rich nations to help raise at least $120 billion for the International Development Association (IDA).
Podcast: What's at stake in the World Bank's IDA replenishment?
The final special episode of the World Bank-IMF meetings podcast discusses the bank's pitch, what borrowing countries want, and why advocacy looks different this year.
Benin becomes first sub-Saharan African country to join the EBRD
Benin has become the EBRD’s 75th shareholder. Benin has expressed interest in applying for recipient country status.
For Africa’s poorest countries, it’s time for transformation
At the IDA for Africa Heads of State Summit next week, we expect to see a far different position from the continent than in years past, focused on creating investment opportunities and fostering economic independence and prosperity rather than just asking for money.
United in action: AFD Group and the World Bank partner to advance global development
As governments and donors worldwide deal with the strain of multiple crises, the resources to combat them are stretched thin, threatening to reverse hard-won development gains. In the face of this, the partnership between the Groupe Agence Française de Développement (AFD Group) and the World Bank stands as an excellent example of the power of collaboration to tackle these daunting development challenges.
Climate finance: Did the IMF/World Bank spring meetings move the dial?
An expert panel give their verdict on whether the Spring Meetings offered Africa hope that climate finance will be expanded and reformed.
The Pandemic Financing Developing Countries Need
COVID-19 taught the world that establishing novel financial mechanisms in the midst of a pandemic is practically impossible. That is why multilateral development banks must develop the necessary frameworks now to ensure that low- and middle-income countries can purchase medical countermeasures at-risk, just as developed countries do.
ADB Operations Reach $23.6 Billion in 2023, Achieve Record Climate Finance
The Annual Report published today outlines that the $23.6 billion comprised loans, grants, equity investments, guarantees, and technical assistance provided to governments and the private sector. Supplementing its own resources, ADB mobilized an additional $16.4 billion in cofinancing through its strong partnerships.
April 22 to 28, 2024
Banga aims for $100 billion in IDA replenishment
At an event yesterday, Banga said that if IDA’s donors can put together around $28 billion to $30 billion, then the bank’s ability to leverage those funds on capital markets by up to four times would put the headline replenishment number north of $100 billion.
MDB Callable Capital Reports Clarify Process But Uncertainties Remain
Recent reports published by five multilateral development banks (MDBs) clarify how MDBs would call on callable capital and how shareholders would approve disbursement, but do not significantly reduce uncertainty on the availability of callable capital in the unlikely case this was needed, Fitch Ratings says.
New Financing Tools Receive Major Funding Boost
Support for innovative financial tools could generate up to $70 billion over 10 years. Belgium, France, Japan, and the United States pledged to the Portfolio Guarantee Platform, while Denmark, Germany, Italy, Latvia, the Netherlands, Norway, and the United Kingdom made commitments to hybrid capital. Japan is committed to providing the first contribution to the new Livable Planet Fund. Bloomberg Eric Martin write up here.
Multilateral Development Banks Deepen Collaboration to Deliver as a System
The MDB Heads committed to concrete and actionable deliverables in five critical areas: Scaling up MDB financing capacity. MDBs expect to generate additional lending headroom on the order of $300-400 billion over the next decade. 2. Boosting joint action on climate change. 3. Strengthening country-level collaboration and co-financing. 4. Catalyzing private-sector mobilization. 5. Enhancing development effectiveness and impact. Reuters write up here.
From:
IDB
10 MDBs Jointly Launch Global Co-financing Platform
In a groundbreaking act of global collaboration, 10 multilateral development banks (MDBs) have joined forces to launch a digital initiative that aims to transform the development finance landscape, potentially unlocking substantial additional financing. The Global Collaborative Co-financing Platform, agreed on the sidelines of the 2024 IMF and World Bank Spring Meetings, will be a digital marketplace that brings together a curated list of projects seeking co-financing from participating institutions.
Scaling Up Co-Financing for Greater Development Impact
The new Global Collaborative Co-Financing Platform, launched by a coalition of ten multilateral development banks, will strengthen partnerships, promote transparency, and improve coordination, enabling development partners and recipient countries to address global challenges more effectively and efficiently.
World Bank-IMF confab ends on inconclusive note
What came out of the World Bank-International Monetary Fund Spring Meetings depends on your perspective. For some, there was progress. For others, it wasn't nearly enough.
What just happened at the IMF and World Bank Spring Meetings?
The week saw the publication of key reports on global growth and financial stability as well as announcements on funding initiatives.
At Spring Meetings, alarm bells sound over global health finance
Many lower-income countries are spending less on health than they did before the COVID-19 pandemic at a time when donor funding is on the decline.
Asian Infrastructure Investment Bank wants to go beyond infrastructure
The traditional infrastructure of yesterday — roads, railways, seaports, airports — has evolved into “smart seaports and smart airports. That’s the infrastructure of tomorrow,” said Jin Liqun, president of the Asian Infrastructure Investment Bank, or AIIB.
World Bank Group Aims to Expand Health Services to 1.5 Billion People
The strategy to reach 1.5 billion people is focused on three core elements: Expanding focus from maternal and child health to include coverage throughout a person’s lifetime, including non-communicable diseases; Expanding operations to hard-to-reach areas, including remote villages, cities, and countries; and working with governments to cut unnecessary fees and other financial barriers to health care.
Germany expects double-digit billion sum in World Bank new loans commitments
Germany will provide 305 million euros of hybrid capital, which will allow the bank to mobilize an additional 2.4 billion euros, the minister said.
G20 to review multilateral development banks reform roadmap in October, says Brazil
Brazil's presidency of the G20 will submit a roadmap for reforming multilateral development banks for approval by member countries at the finance track meetings scheduled for October, focused on expanding their efficiency and lending capacity.
Battle for development cash heats up at IMF/World Bank meetings
Global crises strain appetite to send money abroad. Poor countries' needs have soared, aid not keeping pace. World Bank's development lending arm seeks record funds.
Ajay Banga’s ambitious plan to electrify Africa
Plans to bring electricity to hundreds of millions in Africa could be a game changer for the region — and put SDG 7 in reach. Plus, World Bank chief Ajay Banga’s philosophy on reforms, and African finance ministers tackle debt.
UK to boost World Bank funding to help tackle global challenges
Minister Mitchell announces £100 million hybrid capital contribution to help tackle urgent development issues, as he is due to attend the World Bank Spring Meetings.
April 15 to 21, 2024
The World Is Still on Fire
For the last several years, world leaders have made big promises and laid out bold plans to mitigate the climate crisis and help the neediest countries adapt. At this year's World Bank/IMF Spring Meetings, they must demonstrate that they can fulfill these promises, rather than simply touting new ones.
Negotiating a Bigger, Better World Bank
The World Bank’s Board of Executive Directors recently approved a groundbreaking Framework for Financial Incentives to encourage investments in projects that generate positive cross-border externalities. It is an important step toward making the Bank’s financial model fit for “ending poverty on a livable planet.”
Are the octogenarian IMF and World Bank sprightly enough for the job?
Fragile recovery, low growth, global debt, AI, the climate … The organisations founded in 1944 have lots to talk about this week.
World Bank chief pushes internal reforms at spring meetings
World Bank President Ajay Banga said on Friday he plans to highlight a range of process improvements next week to speed up the development lender's loan approvals, improve the accountability of its 16,000 employees and attract private capital to projects.
The Bretton Woods Institutions We Need
Throughout their 80-year history, the International Monetary Fund and the World Bank have demonstrated their ability to adapt to changing circumstances. In the face of increasingly complex, shared challenges like climate change, both institutions must evolve to fill major gaps in today's global-governance architecture.
What to expect at the World Bank Spring Meetings 2024
The World Bank Spring Meetings will tackle a slew of thorny topics, among them: progress on the bank’s ambitious reform effort, President Ajay Banga’s emerging vision for the 80-year-old institution, a big push around global public goods, and fundraising for the world’s poorest countries.
Ajay Banga tries to build a better World Bank
It has been almost a year since Wall Street veteran Ajay Banga first stepped into his new life as the head of the World Bank, following the early resignation of his Trump-appointed predecessor, David Malpass, who became something of a hate figure for climate types.
Biden’s Push for World Bank Funds to Compete With China Stalls
Inability to secure funding at home seen as US leadership blow. Republicans in Congress opposed to climate change focus.
Geopolitical squabbles stymie World Bank climate action
How much money the bank can rally from the United States and other rich countries will dictate how quickly governments can move to slash planet-warming gases.
Overcoming the Development-Project Implementation Gap
This week’s World Bank spring meetings offer a valuable opportunity to reflect on the International Development Association’s critical role as a source of hope for those most in need – and commit to enhancing its impact even further. That means not only replenishing its resources, but also ensuring that its resources can be best used.
Shareholder Statement on the MDB Callable Capital Exercise
US Treasury, issued by: United States, Japan, Germany, France, United Kingdom, Italy, India, Republic of Korea, Spain, Australia, Netherlands, Switzerland, Belgium, Denmark, and New Zealand Based on the work done, we see scope for additional efforts that involve outreach on the results of this exercise and exploration of ways to possibly reflect the value of callable capital in MDB financial policies, in collaboration with the MDBs and independent experts.
US Treasury sees progress on multilateral bank reforms, but more to do
The next phase would be continued engagement with credit rating agencies, which are assessing possible changes in how they treat callable capital and instruments such as hybrid capital.
World Bank chief manages pressure for climate cash
World Bank President Ajay Banga said multilateral banks cannot provide enough money to try to keep global temperatures in check on their own. Ajay Banga’s comments come after the executive secretary of the United Nations Framework Convention on Climate Change urged the World Bank, other financing institutions and G7 and G20 countries to “step up the pace” on climate finance.
How to Govern the Bretton Woods Institutions Better
Necessary reforms to the quota-allocation formula at the International Monetary Fund and the voting-rights system at the World Bank will likely be difficult and time-consuming. In the meantime, these institutions' boards of directors can and should be modernized, in line with best practices in corporate governance.
World Bank must take ‘quantum leap’ to tackle climate crisis, UN expert says
Simon Stiell calls for reform at development banks to enable governments to provide more climate finance to developing world. … This would involve greater pledges of overseas aid and debt relief for those laboring under the heaviest burdens, but most importantly changes to the banks’ lending practices that would give poor countries greater access to finance. Leaders of developing countries, including Mia Mottley of Barbados and William Ruto of Kenya, have said such reforms could unlock hundreds of billions of dollars of finance. At present, lending practices are rooted in conservative estimates of developing countries’ economic capabilities and are not geared towards tackling the climate crisis.
April 8 to 14, 2024
World Bank Group Announces New Approach to Measuring Impact
The World Bank Group is radically changing the way it tracks results, putting the focus squarely on lives improved rather than money out the door.
IDB reforms, new funds have been approved. What's next?
The Inter-American Development Bank is implementing reforms, new metrics of success, and has plans to take on more risk. And it wants to push other MDBs to do the same.
Largest US bank JPMorgan Chase to deepen partnerships with the African Development Bank Group
“We are also very interested in providing long-term financing, as far as possible in local currencies, provided we have a guarantee from the Bank,” said Eweck (JP Morgan Head of the Public Sector for Sub-Saharan Africa). The US Bank currently works with the Bank Group on capital market transactions. It is considering leveraging the Bank’s guarantee instruments to increase funding to eligible African countries, particularly low-income states.
"Merely lending money is not sufficient. It is imperative to assess the impact of projects on people’s lives," emphasizes the President of the Inter-American Development Bank (IDB)
In an exclusive interview with the G20 Brasil website, Ilan Goldfajn, the President of the Inter-American Development Bank (IDB), elucidated the specific measures undertaken by the institution to execute the reform of governance within development banks, a priority of the Brazilian presidency in the G20. Goldfajn emphasized the crucial task of accurately assessing the tangible impacts of loans on individuals' lives, and stressed the imperative of addressing climate change. He further articulated that "the mandate we aim to pursue within the IDB and the MDBs¹, in alignment with Brasil's presidency of the G20, is one characterized by consensus-building, bridging divides, and seeking common ground to facilitate progress."
From:
G20
The World Bank’s new crisis tools to help countries take shocks in stride
A growing set of interlinked crises in recent years has led to a reassessment of how countries can overcome these challenges while pursuing development goals. The World Bank’s Ed Mountfield speaks to Devex about a new set of crisis tools.
April 1 to 7, 2024
World Bank set to issue up to $1 bln in debut hybrid note this year
The World Bank is looking to issue up to $1 billion in a debut hybrid note on capital markets this year, a senior executive told Reuters, as development banks face increasing pressure to find new ways to boost their lending.
AIIB in talks over second loan guarantee deal for World Bank
The talks follow a similar deal last year, when the AIIB agreed to issue $1bn in credit guarantees against sovereign-backed loans made by the International Bank for Reconstruction and Development, the World Bank’s lending arm. That deal was intended to enable the IBRD to squeeze more out of its cash-constrained balance sheet.
AfDB: Who’s in line to succeed Akinwumi Adesina as president?
While applications don’t open until September, the list of those who have thrown their hat in the ring – whether officially or unofficially – to take charge of the African Development Bank is growing
IDB reforms, new funds have been approved. What's next?
The Inter-American Development Bank is implementing reforms, new metrics of success, and has plans to take on more risk. And it wants to push other MDBs to do the same.
Jamaica returns for $150m+ World Bank cat bond to cover four hurricane seasons
The Government of Jamaica has returned to the catastrophe bond market as anticipated, with an initial target to secure at least $150 million in parametric named storm disaster insurance protection from the capital markets through this IBRD CAR Jamaica 2024 cat bond, to cover the country over four hurricane seasons.
CSOs open letter on the EIB Global Strategic Roadmap
EIB Global needs to clearly apply the principle of development additionality and contribute to the long-term structural transformation of recipient countries, aligning with their national development goals of promoting socially just and environmentally sustainable societies. However, we believe the Roadmap lacks the necessary ambition to fully implement the strategy outlined in the document.
March 25 to 31, 2024
GEMs publishes a new report on recovery rates for private and sub-sovereign borrowers in emerging markets
The Global Emerging Markets Risk Database (GEMs) Consortium has published today for the first time the recovery rates of investments with private and sub-sovereign borrowers in emerging markets and developing economies (EMDEs) for the period 1994-2022. The statistics are collected from the group of 19 multilateral development banks and development finance institutions that are members of the GEMs Consortium and are available online for free on the GEMs website.
From:
IFC
World Bank to share more data to attract private investors to developing countries
The World Bank will publish more of its proprietary data, including on debt defaults, starting next week as part of a push to attract more private sector investment to developing countries, World Bank President Ajay Banga said. Banga, speaking at the China Development Forum early Sunday, China time, said the World Bank Group had mobilized $41 billion of private capital for emerging markets and raised another $42 billion from the private sector for bond issuance last year, with both totals to be eclipsed this year.
Capacity Builders, Market Shapers and Financiers: The Three Roles of Development Finance Institutions in Supporting Coal Plant Phase-Down
A new report by the Boston University Global Development Policy Center synthesizes the workshop discussion, outlines key findings and provides policy recommendations. It explores how DFIs can support holistic and financing options for early coal plant phase-down in a manner that proactively supports development goals, enables investments and unlocks employment and growth opportunities.
March 18 to 24, 2024
World Bank lender to poorest nations seeks record funding haul
The World Bank’s fund for the planet’s poorest nations is seeking a record financing haul to tackle mounting debt and climate crises. The International Development Association (IDA) is in need of the “largest replenishment ever” of financial resources to provide cheap loans and grants to 75 developing countries, Dirk Reinermann, the bank’s head of resource mobilisation, told the Financial Times.
IMF Is Lending Near Record $150 Billion to Counter Debt and Wars
The International Monetary Fund is lending near a record amount to almost 100 countries, evidence of its growing role as a backstop against the financial and political dangers of the post-pandemic world.
Nigerian govt eyes fresh $1bn World Bank loan for IDPs
The Nigerian Federal Government is in talks with the World Bank to complete the processes of obtaining over $1 billion loans to address the challenges facing Internally Displaced Persons and their host communities, as well as bolster rural access and agricultural marketing in the country.
World Bank VP praises Suriname's reforms, announces aid & IDA access
The World Bank has announced more aid for Suriname, while also providing access to funds from the International Development Association (IDA). If the process to become a member of IDA is completed successfully, the country can count on a long-term soft loan of US$22.5 million.
From:
CMC
What comes after World Bank’s apology for child sex abuse?
The first public acknowledgment of wrongdoing in the Bridge schools child sex abuse case seemed too little too late to some observers. Plus, precedents for direct compensation for survivors, and what about other investors?
March 11 to 17, 2024
The strategy behind ADB's massive climate finance numbers
Most of the Asian Development Bank's $4.3 billion adaptation finance is in the form of sovereign loans.
Sex Abuse Inquiry Poses Leadership Test for World Bank’s Ajay Banga
The bank is facing scrutiny as it debates how to compensate victims of abuse at Kenyan schools that it was financing.
IDA in Focus: Understanding IDA
As the World Bank’s International Development Association (IDA) enters a key replenishment year, collaboration and partnerships will be more important than ever to IDA’s work to end poverty on a livable planet. “IDA in Focus” is a new series of webinars designed to deepen partner understanding of IDA’s model and how IDA-financed projects work in different sectors. It includes power point that explains IDA’s financing model.
Multilateral Development Banks Launch Joint Tool To Assess Country Electronic Government Procurement (eGP) Systems
The Heads of Procurement of the Multilateral Development Banks (MDBs) have collaboratively developed a comprehensive and user-friendly tool for assessing electronic government procurement (e-GP) systems of partner countries. This tool is specifically designed for considering the procurement of Goods, Works, or Services contracts, financed by MDBs, through e-GP systems.
Governors Approve Three Historic, Transformative Changes for the IDB Group to Support the Region
The Boards of Governors of the Inter-American Development Bank (IDB) and IDB Invest approved three transformative changes to increase the impact and scale of the IDB Group’s development work in Latin America and the Caribbean, including a new Institutional Strategy and a $3.5 billion capital increase to support a new business model for IDB Invest, the Group’s private-sector arm.
From:
IDB
AIIB, BNDES Forge Strategic Partnership to Drive Sustainable Infrastructure Development in Asia and Latin America
The Asian Infrastructure Investment Bank (AIIB) and the Banco Nacional de Desenvolvimento Econômico e Social (BNDES) have signed a Memorandum of Understanding to deepen cooperation on financing sustainable development and promoting regional cooperation.
AIIB likely to raise climate financing to Bangladesh
The Asian Infrastructure Investment Bank (AIIB) is likely to raise its financing to Bangladesh in the coming years while the country is likely to be the first nation to receive climate finance from the multilateral development bank.
10 Things to Know About the Private Sector Window
In the most challenging markets, there are heightened risks and unpredictability that prevent private sector investment from happening at the necessary scale. The Private Sector Window (PSW) leverages IDA’s resources and helps mobilize sustainable private sector investment in the poorest and most fragile markets.
Financing development: what the EBRD bring to Senegal and Ghana?
In Senegal and Ghana, “our aim will be to help unleash the potential of the private sector in these countries, create jobs and support sustainable development”, adds the President of the EBRD. In other African countries, the EBRD is supporting the public-private partnerships (PPPs) that have boosted the renewable energy sector in Egypt. The EBRD is one of the financial partners of the Benban solar complex (1,650 MWp), a mosaic of solar farms in the Egyptian governorate of Aswan.
Multilateral Development Banks Play Crucial Role in Financing Global Public Goods
Multilateral development banks have increased their financing for climate change mitigation and adaptation and to a lesser extent for combating pandemics and supporting biodiversity. However, the resources provided are still very small relative to what is needed.
March 4 to 10, 2024
Letter: World Bank ‘lab’ fails to address climate challenge
The much-heralded “private sector investment lab” established in June 2023 by World Bank president Ajay Banga has issued its much-anticipated first announcement… Despite the impressive credentials of the group, the recommendations fall far short of addressing the challenge.
Brazil's president calls for IMF reform to reflect "today's world"
Brazilian President Luiz Inacio Lula da Silva on Monday called for reform of the International Monetary Fund (IMF) to make it "more representative of today's world." During his meeting with IMF Managing Director Kristalina Georgieva, Lula talked about the necessity of reforming the multilateral lending agency so as to make it more "capable of helping countries that need to resort to the IMF under better conditions."
Three top priorities for Africa in the G20
First, the AU can play an important role to advocate other G20 members to double efforts to address the challenge of debt distress in many low- and middle-income countries and address liquidity challenges head on. Second, the African Union Summit deliberations flagged several concerns by African countries regarding the reforms of the global financial architecture. Third, Africa’s fiscal challenges will increasingly arise from trade shocks. Discussions on inequality and development can therefore not be detached from trade.
UN nuclear watchdog head urges development banks to fund new projects
Rafael Grossi says World Bank and Asian Development Bank ‘out of touch’ with modern attitudes to atomic energy. The head of the UN’s nuclear watchdog has called on global development banks and their government shareholders to fund new projects, warning that a failure to do so could delay the energy transition. He said there had been a “sea-change” in attitudes to nuclear power due to the climate crisis and the Russia-Ukraine war, which propelled energy security to the top of policymakers’ priority lists.
Building a new bridge in the global aid architecture: Connecting emerging and traditional donors for development impact
Over the past two decades, the global aid landscape has been transformed. Emerging-economy actors and other contributors are deploying considerable resources into global development finance—an area traditionally dominated by the Group of Seven (G7) countries. This welcome change has expanded the breadth and depth of financial support for the world’s poorest nations.
ADB, AIIB drive Asia-Pacific bank capital raises to 3-month high in January
Multilateral development banks, led by Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB), actively tapped capital markets during the month and accounted for 75% of the total issuance, according to the data.
February 26 to March 3, 2024
World Bank Group Prepares Major Overhaul to Guarantee Business
The World Bank Group today announced a major overhaul to its guarantee business that will deliver simplicity, improved access, and faster execution through a new, convenient marketplace. The new reforms are critical to achieving the goal of tripling annual guarantee issuance to $20 billion by 2030. Also see reporting in: Reuters, Bloomberg
Le Maire Signals French Backing for Second Georgieva Term at IMF
Kristalina Georgieva, the head of the International Monetary Fund, gained support for a possible second term from France, a key vote of confidence as her current five-year term ends in September.
Banking on the World Bank’s Knowledge
Even though the World Bank has worked hard over the past quarter-century to establish itself as a “Knowledge Bank” that disseminates the lessons of development, the demand for more and better information continues to grow. In particular, there are three areas in which client countries could use more guidance.
EBRD approves membership of Ghana and Senegal
The shareholders of the European Bank for Reconstruction and Development (EBRD) have approved applications by Ghana and Senegal to become members of the multilateral financial institution.
Ajay Banga Spearheads a Bold Shift at World Bank Group Towards Private Sector-Driven Growth
Ajay Banga, the new president of the World Bank Group, introduces a transformative strategy to catalyze private sector-driven growth in emerging markets through equity investments. This bold move aims to attract institutional investment, foster sustainable economic growth, and address the challenges of the 21st century.
Japan Strengthens Ties with African Development Bank, Pledges Enhanced Support for Poverty Reduction
On a historic visit to the African Development Bank headquarters, Japan's Vice Minister of Finance for International Affairs, Masato Kanda, made a compelling statement of support that underscores Japan's ongoing commitment to Africa's development journey. This marks a significant stride in the relationship between Japan and the African Development Bank, with Kanda being the first Japanese Vice Minister of Finance to make such a visit.
Can the World Bank Group’s Pivot to Private Sector-Driven Growth Succeed?
The new president of the World Bank Group has set out a vision for recalibrating its strategy towards private sector-driven economic growth and development. The success of this venture will depend, among other things, on building an investment programme that is aligned with the geostrategic priorities of the G10 group of developed countries.
World Bank needs to restructure itself, attract private capital: N K Singh
The World Bank needs to reinvent and restructure itself so as to become 'better, bolder and bigger' and harness private capital on the strength of its own balance sheet, said N K Singh, Co-Convenor, Expert Group on MDB Reforms. The World Bank should also look at the possibility of tapping pension funds to increase its capital base and its capacity to fund development projects in developing nations. "Bretton Woods was the first one, it certainly needs to be reinvented, restructured and recreated. But there is no substitute for multilateral cooperation and that's why better, bolder and bigger," Singh said at a panel discussion at the Raisina Dialogue, 2024.
CAF, FinDev Canada and IDB Invest strengthen their commitment to climate action in Latin America and the Caribbean by supporting the region’s first private credit climate finance fund
FinDev Canada, IDB Invest and CAF commitments mobilize both development finance and private institutional capital to support the provision of long-term financing tailored to the needs of underserved medium-sized businesses for low-carbon and climate-resilient operations across the region. Darby IV is a 10-year, climate-focused debt fund with a target size of USD 400 million, managed by Darby International Capital LLC, a leading emerging markets private debt investor. The Fund will earmark at least 40% of invested capital to climate finance transactions, while also providing portfolio clients with guidance on capacity building to identify and mitigate climate risks, which will enable businesses and projects to better adapt to the effects of climate change.
From:
CAF
February 19 to 25, 2024
Everything you need to know about the World Bank's reform plans
Under Ajay Banga, the World Bank is entering into uncharted territory. Set up in 1944 to finance the rebuilding of Europe in the aftermath of World War II, the World Bank and International Monetary Fund now find themselves in a very different place — and in need of an overhaul to reflect today’s changing realities. Or so goes the story according to a group of vocal, mostly Western donors and experts, who have been calling specifically for the World Bank to reorient itself to focus more squarely on the impacts of climate change, alongside other “global public goods” such as pandemic prevention, alongside growing its lending capacity.
Recommended Resources on the World Bank and the IMF 2023
As every year, BWP published its collection of reports, briefings, CSO letters and other resources with a critical angle published in the past year on the World Bank and the IMF.
AIIB must give local communities a voice in development projects
In its eight years of operation, the Asian Infrastructure Investment Bank (AIIB) has grown to be the second-largest multilateral development bank in terms of membership and has invested more than US$50 billion in more than 250 projects. Despite the perception of multilateral development banks as forces of good, the evidence shows that they do actually cause harm. The AIIB was the first such bank to include an oversight mechanism in its founding documents, but it is nearly impossible for people affected to access it.
African Leaders Call for Global Financial Reforms to Address Debt Crisis
Ethiopian Prime Minister Abiy Ahmed emphasizes the urgent need for international financial reforms to address the escalating debt crisis in over 30 African nations. Systemic changes aim to provide long-term financing, ensuring growth across critical sectors and transforming Africa into a net creditor. The narrative of Africa's engagement with the global financial system is one marked by challenges of access to affordable finance. As Prime Minister Ahmed poignantly highlighted, the existing architecture has often resulted in unequal treatment, leading to prohibitively expensive and insufficient financial inflows for developing nations.
World Bank approves shift to channel IDA funds to Afghanistan humanitarian aid
The World Bank Group said on Thursday its executive board endorsed a new approach to aiding Afghanistan that will deploy some $300 million from the bank's International Development Association fund for poor countries through United Nations agencies and other international organizations.
AfDB’s hybrid capital deal opens new asset class for MDBs
The term ‘groundbreaking’ is often overused in capital markets. But the African Development Bank’s hybrid capital deal in January 2024 was just that – or at least that is the hope. In the works for three years, it is the first such transaction in the public sector bond market, opening the door for other multilateral development banks to lend more to emerging markets for sustainable development.
February 12 to 18, 2024
Podcast: World Bank Approach on Climate Change Evolves
The World Bank, which provides loans and grants to emerging and developing economies, is a major financier of international development. Last year, it delivered $38.6 billion in climate finance. But because of its significant capacity, the organization is often scrutinized for how it manages and allocates funds. So, how can the global financial system better support emerging and developing economies amid a changing climate? And how is the World Bank under a new president, Ajay Banga, working to meet these challenges?
Watch/Listen: The development finance issues to watch, and reforming the World Bank
Devex President and Editor-in-Chief Raj Kumar sits down with Global Nation co-founder Jonathan Glennie, as well as Devex Senior Reporter Adva Saldinger, for the latest episode of their weekly podcast series. There is a focus on evaluating what was said by President Banga said at CGD’s event on Monday.
Changes in Financial Institutions’ Governance to Address Views of Middle-income Countries ‘Long Overdue’, Deputy Secretary-General Tells Morrocco Conference
Today’s architecture leaves middle-income countries short-changed. They are denied resources and voice. Global initiatives to assist countries in need often exclude middle-income countries by design. Changes in the governance of financial institutions to give full expression to the views of middle-income countries and reflect their true economic weight are long overdue.
Bridging the Climate Financing Gap: Innovative Solutions for a Sustainable Future
The climate financing gap threatens global efforts to combat climate change. Innovative financial instruments, such as disaster risk instruments and green bonds, offer hope. International organizations are taking action, but more is needed to secure our future.
Nigeria Advocates for Enhanced Concessional Funding to Boost Africa's Economic Transformation
Nigeria's Minister of Finance and Chair of the African Governors Forum of the World Bank, Wale Edun, urged for additional concessional financing from the World Bank to promote economic growth and enhance living standards across Africa. Despite the World Bank's expanded funding in Africa, Edun stressed the need for more concessional financing primarily through the International Development Association (IDA) to support initiatives in electricity, social safety nets, digitization, and technological advancement.
African Development Bank to Launch 2024 Africa's Macroeconomic Performance and Outlook Report
The theme of the 2023 African Economic Outlook is Mobilizing Private Sector Financing for Climate and Green Growth in Africa.
TDB and the World Bank to Accelerate Access to Sustainable and Clean Energy in Africa
The World Bank has extended a facility of close to $300 million to the Eastern and Southern African Trade and Development Bank (TDB), to support distributed renewable energy (DRE) and clean cooking private sector projects in eligible countries of the World Bank’s International Development Association (IDA) that are TDB member states.
African Development Bank invests US$15M in TDB Group’s Green+ shares, boosting clean tech and climate action in Africa.
The African Development Bank Group has announced a follow-up equity investment of US$15 million in the Trade and Development Bank Group’s (TDB Group) pioneering Class C Green+ shares to support clean technology and low carbon projects in its member states. The new capital, to be sourced from the Clean Technology Fund (CTF), will also support the establishment of a project preparation facility to boost investment in clean technologies.
As Low- and Middle-Income Countries Grapple with the Megatrend of Aging, Development Finance Institutions Are Key
Officials from the World Bank and the Inter-American Development Bank, speaking at an October conference hosted by AARP, agreed that aging is the agenda of the 21st century. The observations represented a refreshing expansion of the global priorities of international institutions beyond climate change. The two officials acknowledged the significant challenges — but equally important opportunities — presented by the global megatrend of population aging and highlighted the critical, ongoing role that development finance institutions have in supporting their client countries as they plan to meet the needs of their aging populations.
Sustainably bridging the infrastructure finance gap in emerging economies – are multilateral development banks the answer?
Low-and-middle-income countries (LMICs) desperately need sustainable critical infrastructure to drive forward their economic development. Unable to fund major infrastructure priorities through their own balance sheets, LMIC governments increasingly turn to international creditors to meet the funding gap. While most debt is financed by private creditors, bilateral debt finance casts the greatest shadow over the LMIC infrastructure financing landscape. LMICs increasingly find themselves burdened with infrastructure they do not need and cannot afford – due to a combination of often-termed ‘debt trap diplomacy’, failure to meet ESG and other infrastructure standards, and the influence of geopolitical factors. With LMIC infrastructure needs rising to over $1 trillion per year, stronger partnerships between lenders and more innovative financing solutions will be needed to sustainably bridge the infrastructure funding gap.
February 5 to 11, 2024
An African Agenda for World Bank Group Reform
Recommendations from a high-level roundtable on an African agenda for World Bank reform hosted by the Carnegie Africa Program and the African Climate Foundation.
World Bank Chief Says Lender ‘Wasting Time’ With Too Many Rules
World Bank President Ajay Banga said some of the development lender’s work is bogged down with too many requirements, which slows progress and impacts its effectiveness at a time when he’s trying to raise capital and expand the bank’s mandate.
Kenyans in Foreign Nations to Raise Billions for Ruto Govt Through Diaspora Bond
President William Ruto is eying over Ksh690 billion Kenyans have stashed in foreign banks across the world by offering a Diaspora Bond… the bond will be structured by the World Bank's Multilateral Investment Guarantee Agency (MIGA) and Kenya's National Treasury.
World Bank's Banga slashes red tape, seeks 'better' bank before 'bigger'
World Bank President Ajay Banga is focused on changing the institution he runs. The biggest challenges so far involve reducing red tape, streamlining processes, and getting deals approved more quickly, he said at an event in Washington, D.C. on Monday.
World Bank's Banga denies IFC cover up of abuse involving Kenya school investment
World Bank President Ajay Banga on Monday rejected allegations that the bank's International Finance Corp arm sought to cover up reports of sexual abuse at a for-profit school chain in Kenya in which it held a stake from 2013 to 2022.
Inter-American Development Bank to do more loan risk transfers, no plans for hybrid yet
The Inter-American Development Bank will offload the risk on some loans to expand its lending capacity this year rather than issuing hybrid bonds, its head of asset liability management, Yasser Rezvi, said in an interview.
Vulnerable countries need debt relief 'now or never', new report warns
A new report (by Boston University Global Development Policy Center) has called for a radical global effort this year to help vulnerable countries fend off financial meltdown and climate change, including widespread debt relief and even a China-led version of the Brady Bond plan. (Full paper is here).
World Bank probe rights violations in $150m Tanzania project
The World Bank is investigating allegations of human rights violations raised in the implementation of Tanzania's $150 million tourism resource management project after authorities failed to settle dispute with communities the project affected.
Changes in Financial Institutions’ Governance to Address Views of Middle-income Countries ‘Long Overdue’, Deputy Secretary-General Tells Morrocco Conference
Today’s architecture leaves middle-income countries short-changed. They are denied resources and voice. Global initiatives to assist countries in need often exclude middle-income countries by design. Changes in the governance of financial institutions to give full expression to the views of middle-income countries and reflect their true economic weight are long overdue.
Official Development Assistance Must Recognize Countries’ Vulnerabilities
Given the escalating climate crisis, multilateral lenders must urgently adopt an approach to development aid that emphasizes prevention. By incorporating structural vulnerabilities into their allocation formulas, the World Bank and others can strengthen poor countries' resilience and increase fairness, efficiency, and transparency.
UNCTAD urges reforms on global debt architecture amid rising debt distress
UNCTAD’s latest Trade and Development Report unpacks the current inequalities, inflexibilities and problems of the global sovereign debt architecture, outlining a strategy to address them. A key recommendation is to boost concessional loans – characterized by lower interest rates and longer repayment terms – and grants. This could be done by increasing the base capital of multilateral and regional banks to expand their lending capacity. Another way to raise concessional finance involves issuing special drawing rights (SDRs), a type of international currency the IMF created for member countries to boost their monetary reserves by exchanging them for official currencies as needed. Also important is more transparency in financing terms and conditions.
January 29 to February 4, 2024
President Ruto Secures Support in Quest to Reform Multilateral Development Banks
Kenya’s President William Ruto has continued to forge a coalition of international partners in his quest to reform Multilateral Development Banks. The president secured the support of Italian President Sergio Mattarella, Italian Prime Minister Giorgia Meloni and the European Union (EU) Council President Charles Michael on the sidelines of the Italy- Africa Summit where the Head of State narrowed down on three reform proposals which he believes will allow the financial institutions to cater to all nations equitably. The lobbying is timely since Kenya is slated to host the International Development Association-IDA21 meeting in April 2024. The key reforms include redesigning IDA to prioritize borrowers' needs over existing agendas as set by the donor countries; representation in decision-making; and advocating for increased concessional funding.
African Development Bank sells hybrid note in development finance first
The African Development Bank (AfDB) has sold its long-awaited hybrid capital note, the first financing of its kind for multilateral development banks, which are under increasing pressure to find ways to boost their lending.
ADB Issues its Largest Local Currency Green Bond in Indian Rupees
The Asian Development Bank (ADB) has raised 12.5 billion Indian rupees (about $150 million) through its largest local currency green bond issue to date. The issue is structured as a 4-year currency-linked bond, with a bullet repayment at maturity and carrying a fixed interest rate of 6.72% per year. The bond is denominated in Indian rupees but settled in USD.
Debt relief delays could mean 'disorderly' defaults: IMF official
The flagship debt restructuring process for low-income countries needs to speed up, otherwise there could be a series of "disorderly" sovereign debt defaults, an International Monetary Fund official said on Tuesday.
Revamp of the world order will have to wait
Just after financiers and business leaders gathered at the World Economic Forum in Davos this month, a large number of developing countries got together in Uganda to debate a revamp of the world order. The so-called Group of 77 wants to rethink global governance. Yet while it’s possible to imagine a system more conducive to peace, justice and prosperity, the chance of creating one is slim. It would be better to shore up the multilateral order and wait for better times.
Can the IMF and the World Bank really be changed?
Those with seats at the table of the international financial institutions… cling to their power. … There is a real question about whether the IMF and the World Bank are fit for purpose in a global economy which has changed dramatically.
Too much asked of special drawing rights in tackling climate change
Trillions of dollars are needed to meet the goals of the 2015 Paris agreement. Many low-income and developing countries require concessional and grant resources to play their part. But advanced economies face scarce budgetary resources. To help square the circle, copious proposals focus on using the International Monetary Fund’s special drawing rights. Imagine a pot of money in the hands of creative financial engineers, investment bankers, leading think tankers and environmentalists. There could be recycling, rechannelling, donations, trust funds, hybrid capital, leveraging, multilateral development bank SDR bonds and annual allocations of $500bn.
IMF says 'not yet there' on need for systemic approach to high debt
The International Monetary Fund still favors a case-by-case approach to dealing with sovereign debt issues but is closely monitoring developments to ensure it is prepared if a more systemic approach is needed … IMF strategy chief Ceyla Pazarbasioglu said the global outlook called for "relatively higher and more volatile interest rates" that would not be conducive to emerging markets being able to reduce their high debt burdens.
Bankers Are Pushing to Unlock Secret Data for Climate Loans
(Re GEMS database) Executives from banks, including Citigroup Inc., say they could offer better rates and access to some of the world’s most debt-stressed countries if the World Bank Group’s International Finance Corp., the European Investment Bank and a group of multilateral development banks grant them access to their data on $1.5 trillion in emerging market debt.
World Bank brings US$100m plastic pollution bond
The World Bank has raised US$100m from a plastic pollution outcome bond it announced last month, using a principal-protected structure that reunites several participants in its previous outcome bond deals. Projects in Ghana and Indonesia will generate the credits, which will be issued on Verra, the carbon standard for the rapidly growing voluntary carbon offset market. The World Bank is ramping up its outcome bonds, with its next wave likely to focus on food production.
January 22 to 28, 2024
Developing Countries Need Debt Relief to Act on Climate Change
While developed economies have pledged to increase climate financing sharply by 2030, developing-economy policymakers are struggling to cover the costs of action. With medium-term strategies being used to address a short-term threat, progress on the green transition will be undermined, with potentially catastrophic implications.
Bankers Are Pushing to Unlock Secret Data for Climate Loans
Executives from banks, including Citigroup Inc., say they could offer better rates and access to some of the world’s most debt-stressed countries if the World Bank Group’s International Finance Corp., the European Investment Bank and a group of multilateral development banks grant them access to their data on $1.5 trillion in emerging market debt.
The World Bank’s top 10 contractors in 2023
The article takes a deep dive into the World Bank data to identify the top contractors who received the biggest awards in 2023. Based on its most recent annual report, the World Bank Group … disbursed a total of $91.4 billion in the fiscal year that ended in June 2023. This is up 36.3%, in cash terms, from the previous year, with the increase largely driven by a spike in the amount disbursed through the World Bank trust funds.
World Bank brings US$100m plastic pollution bond
The World Bank has raised US$100m from a plastic pollution outcome bond it announced last month, using a principal-protected structure that reunites several participants in its previous outcome bond deals. Projects in Ghana and Indonesia will generate the credits, which will be issued on Verra, the carbon standard for the rapidly growing voluntary carbon offset market. The World Bank is ramping up its outcome bonds, with its next wave likely to focus on food production.
How to Ease Rising External Debt-Service Pressures in Low-Income Countries
This piece defines the current situations as a liquidity squeeze, and talks about how to avoid this becoming a debt crisis mainly through domestic resource mobilization; increasing receipts of IMF Funds and grants; and questions whether more systemic reform to debt negotiations is needed.
Urgent need to address liquidity pressures in developing countries
In 2023, low-income economies and selected lower middle-income countries paid an estimated US$74 billion in external debt payments on their public and publicly guaranteed debt. This represents an annual increase of over 45 percent compared to 2022, partially reflecting the resumption of payments following the Debt Service Suspension Initiative, among several other factors. When combined with debt service on domestic debt, total 2024 payments toward debt service for these countries are expected to be over US$185 billion, or roughly 7.5 percent of their combined GDP. This figure is higher, on average, than their combined public spending on health, education, and infrastructure.
Devex Dish: How the World Bank is investing in food security and nutrition
A deep dive into the World Bank's new Global Challenge Program on Food and Nutrition Security, crop insurance for African farmers facing climate change, and soil talks at Davos.
African Development Bank launches a new USD 2 billion 4.125% 3-year Social Global Benchmark due 25 February 2027
The African Development Bank, rated Aaa/AAA/AAA/AAA (Moody’s/S&P/Fitch/Japan Credit Rating, all stable), has launched and priced a USD 2 billion 3-year Social Global Benchmark due 25 February 2027, its first social bond issued under its new Sustainable Bond Framework, established in September 2023. The Sustainable Bond Program seamlessly consolidates and enhances the African Development Bank’s existing Green and Social Bond programs, facilitating the issuance of green bonds, social bonds, and sustainability bonds.
January 15 to 21, 2024.
Fitch to finalise crucial multilateral development bank changes in 6-9 months
"Rating agency Fitch expects to finalise changes in the next 6-9 months that should allow the world's biggest multilateral development banks (MDBs) to significantly ramp up lending without jeopardizing their prized credit scores. Rating firms have been looking at how they rate the World Bank and other leading MDBs amid a global push for the banks to triple their lending for fighting poverty and climate change."
Mobilizing Private Capital For Climate Action
"Climate change demands urgent action, and the mobilization of private capital is emerging as a pivotal force in reshaping industries for a sustainable future. While the loss and damage fund was established at COP28, there are not nearly enough public funds and pledges to cover the roughly $2.8 trillion in climate damage already done plus any mitigation or adaptation costs. In the climate change conversation, multilateral development banks (MDBs) are often viewed as the lead financiers. There are a couple of flaws with this assumption. MDBs tend to offer loans as the primary funding mechanism, a process fraught with controversy and questions about its effectiveness. They can hold capital as mortgagors, but often are not experts in higher risk capital investments. On the other hand, private capital organizations have higher risk tolerances and are able to utilize or even design different financing mechanisms. And, quite frankly, there is more private capital available than public funds. At any given point in time, there is roughly $100 trillion on asset management organizations’ books alone."
Harmonizing Global Green Taxonomies
"Addressing climate change requires action at all levels of society, government, and the economy – all around the world. If such a huge number of actors are to work toward a common goal, everyone must operate according to the same principles, define terms in the same way, and measure progress using the same metrics."
Comment: Poor countries need more than aid – they need a fair share of the new green economy
"Despite billions in development aid being spent in the last 50 years, only seven countries have emerged from least developed country (LDC) status. We can do better. But that will require leaders in Davos this week to focus on how their global job creation plans, opens new tab and energy and climate strategies will benefit the one billion people who live in the world’s 45 LDCs."
January 8 to 14, 2024.
The world economy is in crisis again. If we look back 80 years, we might be able to fix it
"Today, five major challenges face the emerging and developing countries of the global south. First, they need better access to public capital to invest in poverty-reducing growth. This requires the World Bank and its sister multilateral development banks (MDBs) in Africa, Asia and Latin America, to increase the amount, quality and speed of their lending. They need to focus more of their money on social welfare programmes that lift the poor out of hunger and contribute to the emancipation of women and girls; and on environmentally sustainable and climate-resilient development, including a just transition to renewable energy systems. In turn, this requires developed countries to make larger financial contributions to the World Bank and other MDBs, both in terms of overseas aid spending and in new capital."
Brazil Takes the G-20 Helm
"Brazilian Finance Minister Fernando Haddad said he aimed to pick up where previous G-20 president India left off—with efforts to increase the funds that multilateral development banks loan to poorer countries for climate, infrastructure, and other projects. An expert group that India convened this year laid out technical steps to make this possible, and the World Bank and Asian Development Bank in September announced plans to increase their lending by billions. Now, Brazil is setting up its own task force to study how additional multilateral development banks can take similar steps."
MDBs move to address the biodiversity crisis
"At COP28, MDBs published a set of common principles for “nature-positive finance”, which will be integrated in existing environmental sustainability tracking methodologies. The principles are one of the key deliverables stemming from the COP26 Joint MDB Statement on Nature, People and Planet, in which multilateral development banks agreed to ramp up efforts for the protection, restoration and sustainable use of nature in support of the Kunming-Montreal GBF."
What 'Paris alignment' means for multilateral development banks
"Renaud-Basso joined Devex Senior Reporter Adva Saldinger to delve deeper into EBRD’s climate priorities, the bank’s approach and timeline for phasing out investments in fossil fuels, what MDBs can do to mobilize more private capital for climate investments, and how MDBs can work better together to support countries with their climate goals."
How to rebuild trust in institutions: results, results, results
"From the US to Europe and beyond, trust in national, supra-national and philanthropic institutions is at an all-time low. There are no cosmetic solutions to the global crisis of confidence in liberal institutions. To rebuild trust, these institutions and philanthropies must demonstrate their value through results."
December 19 to 26, 2023.
Supranationals Rating Criteria: Discussion Paper
"In response to the ongoing review of the capital adequacy framework of multilateral development banks (MDBs) initiated by their shareholders, MDBs have started or are expected to take some steps to adjust their capital adequacy frameworks and overall business models. To fully assess the credit-related aspects of the MDBs’ evolving business model, Fitch Ratings is contemplating reviewing the following elements of its Supranationals Rating Criteria."
Fitch Ratings Invites Responses to Supranationals Rating Criteria Discussion Paper
"Fitch Ratings is contemplating reviewing certain elements of its Supranationals Rating Criteria to fully assess the credit related aspects of multilateral development banks’ (MDBs) evolving capital adequacy framework and overall business model. We have published a discussion paper on these elements and invite feedback from market participants by 24 January 2024. The paper is for discussion purposes only and is not a formal criteria proposal. We are considering increasing the weight of the Fitch’s usable capital to risk-weighted assets (FRA) ratio in our capitalisation assessment as well as providing more quantitative guidance on how we combine the FRA and the (non risk-weighted) equity-to-assets (E/A) ratio to derive an MDB’s overall capitalisation assessment."
Lula Calls for IMF, World Bank Reforms in First G-20 Speech
"Brazil’s Luiz Inacio Lula da Silva called on international financial institutions to reduce fees and increase efficiency, continuing his career-long push for global governance reform as he kicked off his nation’s presidency of the Group of 20."
The Growing Risk of Global Disorder
"Contrary to many Western analysts’ expectations, the shift from a unipolar to a multipolar world economy will not lead to a China-led alternative order but to global instability. Amid deepening economic fragmentation, leaders must forestall a rapid descent into chaos by strengthening the existing multilateral architecture."
December 11 to 18, 2023.
The New World Bank Leader Has the Climate Crisis at the Top of His Agenda
"Ajay Banga, 64, the former chief executive of Mastercard, took over as president in June. He replaced David Malpass, who was nominated by President Trump and stepped down early after coming under fire for disputing the science of climate change in a live interview with The New York Times. And while the World Bank has not instituted the sort of sweeping overhaul envisioned by its most ardent critics, Mr. Banga, an Indian-born American, has over the past six months made a series of changes that he said are aimed at addressing the climate crisis."
G7 Leaders’ Statement
"We are working to deliver better, bigger, and more effective multilateral development banks (MDBs) by enhancing operating models, improving responsiveness and accessibility, and substantially increasing financing capacity to maximize development impact as well as by making MDBs work better as a system. We urge MDBs to continue their steadfast efforts to further implement the G20 Capital Adequacy Framework (CAF) recommendations. We urge the WBG to continue to implement operational and financial reforms. We will deliver on the G20 Leaders’ commitment to collectively mobilizing more lending headroom and concessional finance to boost the World Bank’s capacity to support low and middle-income countries that need help in addressing global challenges, with a clear framework for the allocation of scarce concessional resources, and to provide strong support for the poorest countries."
From:
G7
A Green Africa needs long term money
"The eradication of poverty remains a crucial and noble goal, but the century in which we live equally demands the protection of global public goods, argues Barbados Prime Minister Mia Mottley."
Banga plans to triple World Bank guarantee agency
"The World Bank president told European Union officials he plans to triple the Multilateral Investment Guarantee Agency — a move proposed by a G20 report."
IDB Invest Flexes Financing War Chest Ahead of Capital Increase
"Inter-American Investment Corp. is bolstering its ability to mobilize capital from investors as it seeks support from its shareholders for a proposed capital increase. IDB Invest, the private-sector arm of the Inter-American Development Bank Group, is luring this year about $2 of investor capital for each dollar of financing out of its own balance sheet, Chief Executive Officer James Scriven said in an interview. That’s versus a ratio of $0.6 of investors cash per each dollar that the Washington-based lender previously had, he said."
MDBs issue common principles for nature-positive finance at COP28
"Under this statement, the MDBs have now defined a set of common principles for tracking nature-positive finance that can be used by each MDB and that may be informative for other investors (including, but not limited to, capital markets and domestic public budget holders). The common principles define nature-positive finance and the eligibility criteria for identifying and tracking it. The principles also make it easier to compare MDBs’ respective screening and tracking processes, including communicating on financial contributions to nature-positive outcomes."
The Global South’s Debt Crisis Is Thwarting Climate Ambition
"The first global stocktake at COP28 will likely emphasize the importance of slashing emissions before 2030. But given that many climate-vulnerable countries cannot invest in low-carbon development unless they are offered debt relief, policymakers must agree to reform the debt architecture and provide more concessional finance."
Who is pledging climate finance at COP28, and how much?
"At this year's U.N. climate summit, countries, development institutions and businesses are pledging more money for everything from the energy transition to health care initiatives, technology investments, disaster relief and more. Hosts the United Arab Emirates said more than $83 billion had been mobilised during the first five days of the event. Here are some of the main COP28 finance pledges."
COP28: AIIB to host 2024 global summit of public development banks
"The Asian Infrastructure Investment Bank will host the next meeting of 'Finance in Common', a network of public development banks, in 2024 - the first time the event will be held in the Asia. Finance in Common said in a statement released during the COP28 climate talks in Dubai that it had also launched a platform with the Inter-American Development Bank (IDB) and think tank Climate Policy Initiative (CPI)."
Finance in Common, IDB, and CPI team up to develop the Finance in Common Financial Innovation Lab
"Finance in Common (FiCS), the Inter-American Development Bank (IDB), and Climate Policy Initiative (CPI), today announced a collaboration to develop the Finance in Common Financial Innovation Lab (FiCS Lab), a platform to foster innovation and collaboration among public development banks (PDBs) in mobilizing private capital and expanding climate finance. The FiCS Lab is supported by the Children’s Investment Fund Foundation (CIFF)."
JP Morgan DFI's new chief on scaling sustainable finance
"The key issue holding up more private sector financing for sustainable development in emerging markets and developing economies isn’t raising money, it’s finding projects or companies to invest in, according to Arsalan Mahtafar, the head of J.P. Morgan’s Development Finance Institution."
The flawed carbon credit trade needs fixing
"The multilateral development bank system could play a role in supporting the marketplace by working alongside UN experts to advance common frameworks. It can also build transparency in the institutional and financial infrastructure that underpins VCMs, for instance by helping to develop a global registries for credits. As they are now, VCMs can create the facade of action on climate change. With huge shortfalls in climate finance and temperatures rising rapidly, it would be foolish not to try fixing them."
Global Green Bond Initiative joins with African Development Bank to strengthen green bond markets in Africa
"The African Development Bank Group signed a joint partnership agreement with the coalition of development finance institutions of the Global Green Bond Initiative to collaborate on technical assistance to promote green bond markets in Africa. Africa’s engagement in the green bond market currently represents less than 1 percent of more than $2.2 trillion in community green bond issuance in 2022."
Devex invested: Development banks step up their climate finance at COP 28
"There has been a flurry of finance-related announcements since the United Nations’ COP 28 climate conference kicked off last week in Dubai. One thing seems clear: MDBs have gotten the message from shareholders that they need to step up on climate."
December 4 to 10, 2023.
New World Bank Chief Hails COP Momentum as Climate Pledges Mount
"Six months after becoming president of the World Bank, Ajay Banga is seizing all the momentum he can at COP28. World leaders spent the first three days at the climate conference unveiling a string of announcements from cutting methane emissions to ramping up the flow of money to poorer countries. The World Bank has been involved in many of those deals."
A climate finance framework: decisive action to deliver on the Paris Agreement
"Second report of the Independent High-Level Expert Group in Climate Finance. The COP26 and COP27 Presidencies, together with the UN Climate Change High-Level Champions, extended the mandate of the Independent High-Level Expert Group on Climate Finance (IHLEG) in July 2022, to prepare this second report for COP28. The IHLEG was tasked to help develop and put forward policy options and recommendations to encourage and enable the public and private investment and finance necessary for delivery of the commitments, ambition, initiatives and targets of the UNFCCC Paris Agreement, reinforced by the Glasgow Climate Pact, and the Sharm el-Sheikh agenda."
UN Agencies, Multilateral Development Banks, Private Sector Finance, and Philanthropy Leaders Unite to Scale Climate Finance Capacity Building
"New Global Capacity Building Coalition will turbocharge climate finance capacity building and technical assistance for financial institutions in emerging markets and developing economies seeking support for developing their climate strategies Supported by Bloomberg Philanthropies, the Coalition brings together leading providers, designers, and funders of capacity building, training, and research for climate mitigation and adaptation, including the UN, World Bank, other MDBs, IMF, ISSB, NGFS, GFANZ, and PRI.
Top development banks, funds set up 'debt-for-nature' task force
"A consortium of top multilateral development banks (MDB) and climate funds launched a global "task force" on Monday to scale up the number and size of 'debt-for-nature' swaps that countries can do."
World Bank Focuses On Securitization to Scale Climate Finance
"The World Bank is working with a club of 15 finance bosses to lower the risk of investing in climate projects in emerging economies and attract private capital for cutting emissions. Ajay Banga, the World Bank’s president, said the Private Sector Investment Lab is focused on "figuring out a model of originate-to-distribute" that would allow for deep-pocketed investors to put up large sums for climate deals."
World Bank Extends New Lifeline for Countries Hit by Natural Disasters
"By significantly broadening the scope of its Climate Resilient Debt Clauses, the World Bank is doing more to help vulnerable countries access early—and more meaningful—support. This commonsense lifeline adds new capabilities to the Crisis Toolkit that the World Bank unveiled in June. The changes reflect the World Bank’s ambition to aggressively confront the climate emergency, especially in the most at-risk communities."
World Bank Says Loss and Damage Fund Could Start in Three Months
"The World Bank could have a fund to compensate vulnerable countries hit by extreme weather events up and running in as little as three months, according to a top executive. The institution could be ready to dole out cash early next year, said Axel van Trotsenburg, senior managing director of the World Bank. He noted that’s the same amount of time it took to set up the Pandemic Fund, which has a similar structure to the one that will be used for the climate loss and damage vehicle."
Collaboration is welcome, but size matters for multilateral development banks
"The International Development Association is the largest single source of concessional finance for the world’s poorest countries. Negotiations begin in December for the next funding round The target is to triple by 2030, but contributions have been dropping since the 2012 peak MDBs can “sweat their balance sheets” with initiatives such as portfolio guarantees and hybrid capital — but it is fresh capital that is most urgently needed."
World Bank Group Doubles Down on Financial Ambition to Drive Climate Action and Build Resilience
"The World Bank Group is pushing to do more to battle climate change and do it faster, devoting 45 percent of its annual financing to climate-related projects for the fiscal year that runs from July 1, 2024, to June 30, 2025. This increased ambition is more than just a laudable percentage—it’s putting to work more than $40 billion—around $9 billion more than previously programmed. In 2021, the Bank announced a goal to reach an average of 35 percent by 2025 and is currently ahead of schedule, running at an average of 36.3 percent since July 2022."
World Bank Carbon Credits to Boost International Carbon Markets
"Today, the World Bank announced ambitious plans for the growth of high-integrity global carbon markets, with 15 countries set to earn income from the sale of carbon credits generated from preserving their forests. By next year, these countries will have produced over 24 million credits, and as many as 126 million by 2028. These credits could earn up to $2.5 billion in the right market conditions, with much of that going back to communities and countries. Thriving carbon markets have the potential to do the same for other countries in the long-term."
World Bank, Global Fund team up to tackle health toll of climate change
"The World Bank has teamed up with the Global Fund to Fight AIDS, Tuberculosis, and Malaria to fortify health systems in the global south against the effects of climate change. The two signed a memorandum of understanding on Wednesday “to support more efficient, effective, and sustainable financing to improve health outcomes in the face of climate change.”
First ever study looking at multilateral development bank financing to cities in the Global South reveals a significant shortfall in financing for urban climate projects
"Recommendations for MDB reform include prioritizing concessional funding that would de-risk investment, supporting cities to access private finance, and addressing issues of low creditworthiness, limited technical capacity, and regulatory barriers. MDB must also develop operating models and instruments tailored to cities’ needs in coordination with National governments."
November 20 to December 3, 2023.
World Bank and kin head for a $100 bln cash call
"The World Bank and its fellow institutions are heading for a cash call. Scaling up the Washington-based lender and other multilateral development banks can provide valuable geopolitical clout and will help in the fight against climate change. The first step is to sweat their existing balance sheets harder. But eventually shareholders, including the United States, will have to overcome domestic political hurdles to put up $100 billion of extra capital."
How the World Bank’s new boss is navigating a clash over climate change
"The answer, said Banga, is private capital. The World Bank has financial tools — such as political risk insurance or concessionary loans — to pry loose money from the private sector. It also has the clout to remove barriers that hinder private investment in developing countries, and named 15 top executives and economists in July to do that through the Private Sector Investment Lab."
Rethinking Climate Finance: MDBs and Private Sector Mobilisation
"Co-hosted by EBRD and IDB Invest and joined by private sector investors ILX Management and CDPQ, the event explores how MDBs are innovating towards climate finance and how these innovations are perceived by stakeholders as effective conduits for climate investments. The panel will analyse their approach towards climate finance in emerging markets and developing economies as they aim to significantly increase climate finance."
Strengthening multilateral development banks: A response to critics
"We believe the best way to guard against this risk is to build as large a coalition as possible to advocate for change amongst shareholders, MDB management and staff, borrowing governments, and other development and climate stakeholders. To that end, we take seriously all commentary on the report. In the spirit of advancing the dialog, we offer the following reactions to criticisms we have heard."
Making development finance work in an era of climate emergency
"Pepukaye Bardouille, who comes from the climate-vulnerable Caribbean island nation of Dominica, is director of the Bridgetown Initiative unit of the Barbados government. She joined Devex President and Editor-in-Chief Raj Kumar on the Climate + podcast to discuss how to make development finance institutions fit for purpose and why the availability of cheaper, longer-term financing is critical for addressing climate change."
Lack of incentivisation halting transition finance progress
"To fund the innovation and infrastructure required to achieve a sustainable economy, an additional $126tn in transition finance will be needed globally from now until 2050. Asset owners are a key link in mobilising this capital. Voluntary carbon markets must be established, private capital moved at scale and multilateral development banks must work together to release more capital for climate action. OMFIF and SGX Group brought together asset owners, insurers, asset managers, multilateral development banks and standard setters to discuss these issues at the Global transition finance summit in Singapore."
November 20 to 26, 2023.
The three changes we need to improve understanding of private capital mobilisation
"Why does mobilisation matter? Here, we first take a look at what the IEG said about private sector mobilisation, before outlining three changes that are needed if we are to better understand the mobilisation of private capital and ultimately drive changes that will result in its growth. In short, we need a workable definition and estimate of catalysed private capital, reforms to how mobilisation is conceived and measured, and increased transparency of mobilisation data."
Climate Finance to Be Front and Center at COP28
"For years, multilateral development banks (MDBs), led by the World Bank, have struggled to align their approach to supporting economic and social progress with climate priorities. This struggle reached a crescendo in 2023 with the appointment of a new World Bank president, Ajay Banga, after his predecessor garnered criticism for appearing to doubt the reality of climate change. Numerous stakeholders—from key governments to civil society development and environmental advocates—have called for reform of the MDBs to enable them to be more effective in mobilizing climate finance for emerging economies."
World Bank's proposed inequality indicator too weak, experts warn
"The world's widening inequality hasn't always been front and center for the World Bank. A new effort is trying to change that."
November 13 to 19, 2023.
READOUT: Secretary of the Treasury Janet L. Yellen’s Bilateral Meetings with People’s Republic of China Vice Premier He Lifeng in San Francisco, California
"Committed to work together on shared challenges, including economic growth and financial stability and regulatory issues. They also committed to work together on climate change related economic issues and on debt issues in low-income and emerging economies. Both countries also committed to strengthening the international financial architecture. This includes a meaningful quota increase and steps to increase the voice of under-represented members/regions including through a new quota formula at the International Monetary Fund and the acceleration of efforts to evolve the Multilateral Development Banks to become better, bigger, and more effective."
COP28: a year on from climate change funding breakthrough, poor countries eye disappointment at Dubai summit
"The US is the biggest shareholder in the World Bank and traditionally, the bank’s president has been a US citizen nominated by Washington. Small-island developing states (among the most vulnerable to climate change due to sea-level rise) have argued for moving the fund away from a donor-recipient model, with all their usual power imbalances, towards a partnership founded on a shared commitment to protecting the planet. This will require partial or total reform of the World Bank – and some argue this is already happening under its new president. But hosting the fund within the bank would still give donor countries disproportionate influence, despite recommendations by the transitional committee that the fund’s governing board be composed of a majority of developing country members."
What World Bank reforms mean for its watchdog
"The 30-year-old Inspection Panel will need to adapt to the bank's new focus on climate, experts say."
UNCTAD urges the global financial system to address pressing development and climate finance needs of least developed countries
"The United Nations Conference on Trade and Development (UNCTAD) emphasized today the imperative for international financial reforms to specifically target the financing requirements of the world's 46 least developed countries (LDCs). According to UNCTAD’s Least Developed Countries Report 2023, fiscal constraints in LDCs pose a severe threat to their ability to implement crucial development policies, potentially derailing progress towards Sustainable Development Goals (SDGs) and a low-carbon transition. UNCTAD Secretary-General Rebeca Grynspan said “The success of the 2030 Agenda for Sustainable Development is inextricably linked to the progress of these nations,” adding that time is running out for LDCs to achieve the SDGs."
November 6 to 12, 2023.
World Bank eyes speeding up loan approvals amid bold overhaul
"The World Bank aims to speed up the disbursement of loans by one third in as little as two years, a key pillar of an overhaul that aims to make the development organization more effective. "We did not pin an exact date, but we will be looking to reduce by a third over perhaps a couple of years," said Ed Mountfield, Vice President for Operations Policy and Country Services at the World Bank, in an interview with Reuters in London."
Yellen supports 'significant' capital increase for IDB's private sector arm
"U.S. Treasury Secretary Janet Yellen on Friday said the United States will work closely with the Inter-American Development Bank (IDB) to better integrate supply chains in Latin America and the Caribbean as Washington works to counter China's growing influence. Yellen, who hosted a breakfast for leaders from the Americas Partnership for Economic Prosperity before a White House summit, said Treasury strongly supported efforts by IDB President Ilan Goldfajn to reform the regional development bank's private sector arm, IDB Invest, and backed a capital increase for it."
October 30 to November 5, 2023.
Fixing Global Economic Governance
"To address climate change and the rest of the Sustainable Development Agenda, we must do more to enhance emerging markets’ and developing countries’ revenues, so that they can make the necessary investments. As matters stand, however, international trade and financial arrangements are overwhelmingly arrayed against this goal."
In times of polycrises, multilateral development banks must do more and act faster
"Multilateral development banks (MDBs) like the Asian Development Bank, of which I am president, must do more and act faster to overcome these crises and help people while there is still time. Business as usual isn’t an option, especially in Asia and the Pacific, where nearly 70 million people have fallen back into extreme poverty since the pandemic and which accounts for more than half of the world’s greenhouse-gas emissions. We need bold action to deliver the estimated US$3-trillion needed annually by 2030, according to the G20, to tackle global challenges and revive progress on the Sustainable Development Goals."
The World Bank can bring the world’s poor into the clean energy revolution
"That requires global coordination, and Ahmed thinks the Bank is the right group to lead the charge. He imagines a world where vast projects, like solar farms across the Sahara Desert that feed into electrical grids from Europe to central Africa, are shepherded to completion by the World Bank, coordinating the potentially dozens of countries that would need to participate, help fund, and build out the ideas. Ahmed and I spoke in early October about what the World Bank is doing now to fight global warming, and what it could be doing differently and better. A transcript edited for length and clarity follows."
Development Futures: Reforming the Multilateral Development Banks
"In this episode of Development Futures, Alexandre Dayant speaks with Clemence Landers, a senior policy fellow at the Center for Global Development. Together, they discuss ongoing reform efforts, explore innovative solutions to maximise the impact of MDBs, and analyse the implications of the US–China competition within the reform landscape. What steps can MDBs take to optimise their financial resources, and how can they navigate the potential trade-offs between climate and development financing? These are just a few of the questions covered in this wide-ranging discussion."
The World Bank Eyes an Overhaul Amid the Climate Crisis
"The Marrakech meetings underscored the imperative of bringing global economic governance into greater balance with ecological imperatives by embracing new, green approaches to global development that can command support from rich and poor countries alike. As Financial Times columnist and editor Martin Wolf observed, a “massive” and “frightening” chasm has opened up between today’s planetary crisis and the antiquated institutions of international cooperation we have inherited. In defiance of all rationality, he continued, humanity seems prepared to commit collective suicide, simply because it cannot figure out how to harness the world’s extraordinary wealth to accelerate clean development in the “Global South.” We cannot afford North-South acrimony if we wish to survive the climate emergency, agreed the IMF managing director, Georgieva. “We need to move from a culture of pointing fingers to the culture of holding hands. We are all in this together.""
The IFC’s new approach to international development
"Makhtar Diop, managing director of the World Bank’s International Finance Corporation, speaks about the implications of the recent partnership agreement signed with other multilateral development banks."
MDBs should be sensitive about the price of hybrid capital
"Under pressure from shareholders, multilateral development banks are exploring innovative solutions to boost their lending firepower to emerging markets for sustainable development. This includes the use of hybrid capital, which will allow MDBs to lend more without impacting their triple-A credit ratings due to these securities being treated as equity by credit rating agencies. However, being subordinated in the capital structure, MDBs will have to pay significantly more for hybrid bonds over what they pay for conventional funding."
What has a year of ‘global financial architecture reform’ actually achieved?
"Nevertheless, the reforms and momentum to date should not be written off - far from it. Much of the global financial architecture has been in place since the end of the Second World War, and it was always going to take a significant amount of time and energy to reform it. Moreover, recapitalisation is not totally off the cards: major shareholders simply want to maximise the World Bank’s lending ability to its current full potential first (Yellen ruled out recapitalisation “at this time”).
Comment: Investors should tap renewed momentum for climate finance in developing nations
"Both investors and governments recognise that achieving global net-zero carbon emissions by 2050 requires involving developing countries in the clean economy transition. Despite their minimal carbon emissions, the world’s poorest and most vulnerable nations bear the brunt of climate damage. Now, after years of deadlock over funding climate efforts in these nations and unfulfilled financial pledges from wealthy countries, there's a fresh resolve among governments, multilateral banks and investors to contribute to solutions."
October 23 to 29, 2023.
In times of polycrises, multilateral development banks must do more and act faster
"Multilateral development banks (MDBs) like the Asian Development Bank, of which I am president, must do more and act faster to overcome these crises and help people while there is still time. Business as usual isn’t an option, especially in Asia and the Pacific, where nearly 70 million people have fallen back into extreme poverty since the pandemic and which accounts for more than half of the world’s greenhouse-gas emissions. We need bold action to deliver the estimated US$3-trillion needed annually by 2030, according to the G20, to tackle global challenges and revive progress on the Sustainable Development Goals."
What has a year of ‘global financial architecture reform’ actually achieved?
"Nevertheless, the reforms and momentum to date should not be written off - far from it. Much of the global financial architecture has been in place since the end of the Second World War, and it was always going to take a significant amount of time and energy to reform it. Moreover, recapitalisation is not totally off the cards: major shareholders simply want to maximise the World Bank’s lending ability to its current full potential first (Yellen ruled out recapitalisation “at this time”).
Comment: Investors should tap renewed momentum for climate finance in developing nations
"Both investors and governments recognise that achieving global net-zero carbon emissions by 2050 requires involving developing countries in the clean economy transition. Despite their minimal carbon emissions, the world’s poorest and most vulnerable nations bear the brunt of climate damage. Now, after years of deadlock over funding climate efforts in these nations and unfulfilled financial pledges from wealthy countries, there's a fresh resolve among governments, multilateral banks and investors to contribute to solutions."
How to finance a faster shift to a better world
"The world is on fire.” These are the opening words of the second volume of a report on strengthening the multilateral development banks commissioned by the G20 and released last week in Marrakech. The heat of 2023 makes that more than a purely figurative statement. We are living in an era of big challenges and an evident inability to meet them. The time left is also ever shorter."
G20 communiqué analysis Annual Meetings 2023: Nothing new under the sun
"The communiqué of the G20 finance ministers and central bank governors was released on 13 October and framed yet again by a challenging geopolitical and economic global context. It focused on the interlinked issues of the ongoing conflict in Ukraine, the urgency of meeting the Sustainable Development Goals (SDGs), progressing with multilateral development banks (MDBs) reform, and addressing debt concerns. While the issues covered by the document are obviously relevant and important, those left unmentioned are significant: Recognition of a debt crisis, the need for debt relief and the establishment of an independent debt restructuring mechanism, special drawing rights allocations, successful completion of the IMF’s 16th quota review and commitments to meet overseas development and climate finance commitments, to mention perhaps the most prominent among them."
Devex Newswire: World Bank meetings go out with an inconclusive bang
"The World Bank-International Monetary Fund annual meetings ended with plenty of discord over the agreements that were clinched — with bank President Ajay Banga’s reforms garnering mixed reviews."
Devex Invested: The scorecard from Marrakech
“It leaves me with the question: ‘If not now then when?” Clemence Landers from the Center for Global Development told Devex. “What exactly needs to get better before the bank can get bigger and by when?’”
World Bank-IMF meetings: A start, but still a long way to go
"The broad consensus after last week’s World Bank and International Monetary Fund annual meetings — held for the first time in Africa in 50 years — seemed to be that the bank is making a good start on a long and very hard journey."
IDB head’s big plan: Work with the World Bank, sweat the balance sheet
"Under President Ajay Banga, the World Bank is making a renewed push to get multilateral development banks to cooperate, not compete, with each other. For Ilan Goldfajn, president of the Inter-American Development Bank, that means being practical and not over-promising what can’t be delivered."
Annual Meetings 2023: Investing in People for a Livable Planet
"With chronic instability, war, continued climate disasters and a fledgling pandemic recovery, the World Bank Group committed at the 2023 Annual Meetings in Marrakech, Morocco to evolve and rise to the challenges with a new mission: eradicate poverty on a livable planet. During his plenary speech before World Bank governors the president outlined the new mission including a central emphasis on women, youth and jobs. He described plans for the institution to increase its financial capacity and refocus on confronting challenges “not just as a funding mechanism but as a knowledge mechanism.”
EIB 'must strengthen' global path so EU looks outward, says Hoyer
"The European Investment Bank must continue to develop operations and partnerships outside the European Union, the bank's president Werner Hoyer told GlobalMarkets at what will be his last IMF-World Bank annual meetings in the role, as his term ends next year."
October 16 to 22, 2023.
The World Bank's Bold New Vision
"To create a world free of poverty – on a livable planet.” This vision and mission will test the sincerity of our ambition – it sets us on a journey that will require reimagined partnerships, a new way of working and thinking, an innovative plan to scale and replicate, additional resources, and optimism for what could be possible."
Key takeaways from IMF/World Bank meetings in Morocco
"The International Monetary Fund and World Bank wrapped up annual meetings in Morocco on Sunday with some progress towards increasing their lending resources but confronting a new economic shock from the Israel-Gaza conflict. Discussions in the tourist hub of Marrakech, not far from the epicenter of a devastating September earthquake, focused on a flagging global economy weighed down by debt, inflation and conflict, a growing wealth gap between rich and poor countries and floundering efforts to tackle climate change."
World Bank, multilateral development banks jointly seek to boost lending power
"The World Bank on Friday said it is bolstering collaboration with nine multilateral development banks (MDBs) to accelerate its vision of a liveable planet free of poverty. It said measures already being implemented or under consideration by the MDBs could yield $300 billion to $400 billion of additional lending capacity to help developing countries confront "a perfect storm of intertwined crises — from climate shocks and conflicts to pandemics and surging debt."
Fourth G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting on 12-13 October 2023 culminates in Marrakech, Morocco
"Members discussed the priority of strengthening Multilateral Development Banks (MDBs) to address the global challenges of the 21st century and the report of the G20 Independent Expert Group (IEG). The IEG submitted Volume 2 of their Report, Volume 1 of which was submitted prior to the meeting at Gandhinagar in July 2023."
Statement of the Heads of Multilateral Development Banks Group: Strengthening Our Collaboration for Greater Impact
"We take this vote of confidence with high responsibility, stepping up our individual and collective actions. To rise to the challenge, we reiterate our commitment to make critical reforms to strengthen our financing capacity, to increase the speed and agility of our operations, and to improve the way we work together to maximize our impact as a system. As we conclude our discussions in Marrakech, we agree to strengthen our collaboration in the following five critical areas."
Multilateral development banks, keen to expand lending, to meet with ratings agencies
"Senior executives at multilateral development banks will meet on Wednesday with the top credit ratings agencies, bank executives said, amid a broad push to expand their lending capacity and help countries brace for climate change and other challenges. The closed-door meeting will address how to value callable capital - a commitment from shareholders to step in during extreme circumstances — in the banks' capital adequacy frameworks, Roberta Casali, vice president for risk at the Asian Development Bank, told a Rockefeller Foundation event on Tuesday. It will be the fourth such meeting this year, she said."
Banga vows to improve World Bank before asking for a capital increase
"Ajay Banga promised to deliver a “better bank,” before asking shareholders for a “bigger bank,” the World Bank’s new president said during a press conference to kick off the annual meetings in Morocco. Banga stayed on message during his opening remarks on Tuesday, hammering home the same points he made during interviews leading up to the World Bank-International Monetary Fund gathering in Marrakech."
Exclusive: IDB chief says lending could reach $112 bln with private arm
"Inter-American Development Bank (IDB) President Ilan Goldfajn said the financial institution can expand its lending capacity to as much as $112 billion over a decade once it secures fresh capital from shareholders for its private arm. A plan to increase capital by IDB Invest - the lender's private sector arm - is set to be ratified at the bank's annual meeting in March, Goldfajn told Reuters on the sidelines of the World Bank/IMF meetings in Marrakech on Wednesday."
Gates Foundation chief: US is a ‘stumbling block’ in development finance
"As development officials increase their focus on pushing emerging market economies to contribute more to development and climate finance, Suzman’s warning is a reminder that the US needs to put its money where its mouth is. Washington has in recent years pushed for the World Bank’s balance sheet to “work harder”, for example by allowing shareholders to guarantee loans or invest in bonds, rather than increasing its funding. But this was no replacement for increasing direct financing, Suzman said."
October 9 to 15, 2023.
World Bank's Banga faces pressure on resources, shareholder schisms
"World Bank President Ajay Banga will come under pressure this week to focus on climate change, but the former Mastercard CEO first needs to get shareholders in line on how to grow the bank. Banga, just 130 days into the job, has a mandate to broaden the multilateral development lender's mission to tackle global crises including climate change, pandemics and fragile states."
Progress in reforming development banks 'quite limited,' new tool shows
"A new tool launched on Monday to track reforms by the World Bank and the five biggest multilateral development banks (MDBs) shows that broad changes are "firmly in play" but progress in implementing them has been limited thus far. Senior officials at the nonpartisan Center for Global Development said they developed the new platform to assess progress being made on reforms, but concluded progress in implementing the changes was "quite limited."
US Treasury pushing development banks for progress on next phase of reforms by April
"The U.S. Treasury Department is pushing the World Bank and regional multilateral development banks to complete work on new rules for leveraging shareholder capital commitments to boost lending capacity by April 2024, a senior Treasury official said. Giving more value to callable capital -- commitments by shareholders to supply additional resources in the event of severe financial problems -- in the bank's balance sheets could unlock "significantly more financing" for developing countries, said the official, who was not authorized to speak publicly."
World Bank explores expanding loan guarantees for private financing
"The World Bank on Monday said it is looking at ways to expand the guarantees it provides for commercial loans to boost the private financing available to developing countries. Some emerging economies have been unable to tap international markets as global interest rates soar and with uncertainty about when the U.S. Federal Reserve will reach the end of its current tightening cycle."
Readying the Multilateral Development Banks for the Climate Fight
"Different climate-financing challenges call for different financing methods, and when it comes to building resilience in the developing world, multilateral development banks must take the lead. But to be effective, they and their shareholders must remove the shackles that have been holding them back."
Yellen says World Bank needs 'cultural change' to better mobilize private capital
"U.S. Treasury Secretary Janet Yellen said on Tuesday the World Bank had made progress in reforming its operations to better address climate change and other global challenges, but still needed "cultural change" to mobilize private sector capital. Yellen, speaking at the Mohammed VI Polytechnic University in Ben Guerir, Morocco, said the bank's governors would this week endorse a new vision "to end poverty on a livable planet" and that its new president, Ajay Banga, was working to turn that new mission into reality."
Opinion: Multilateral development banks must collaborate better
"As the 2023 Annual Meetings of the World Bank Group kick off, here's how multilateral development banks can rewire to focus on collaboration."
Maximising the developmental value of MDB callable capital: Preliminary findings
"Callable capital is worth $1.2 trillion in nominal terms, but multilateral development bank (MDB) statutes are unclear on how it can be used, weakening its value. Several major shareholder governments could deploy substantial resources quickly to meet a capital call, although budgetary accounting needs clarifying. Credit rating agencies account for callable capital in divergent ways in part due to limited information from MDBs and shareholders. Preliminary evidence suggests that MDB tools and processes to face financial stress could be refined to further reduce financial risk and increase resilience. Stress tests illustrate the extraordinary financial strength of MDBs, even in the face of shocks many times greater than any experienced before."
Balancing ambitions and bridging divides at multilateral development banks
"The World Bank Evolution Roadmap will impact all multilateral development banks. Its success depends on the willingness of developed countries to bridge the gap with developing countries. This requires increasing voice and decision-making power of developing countries and heeding calls for a capital increase."
Finance Leaders: Our Systems Are Broken. You Can Act to Change That
"It is the most vulnerable people who shoulder the biggest impacts from this system breakdown. Ensuring our multilateral systems are fit to tackle these enormous challenges that disproportionately impact lower income countries is a critical moral and practical collective responsibility. Time is running short and modest incrementalism won’t be enough. Action to deliver on real change that prioritises people must start now. As you gather in Marrakesh, we, the undersigned, urge you to fast track progress on the following and to lay the foundation for a liveable, prosperous planet."
Assessing the Bretton Woods Institutions’ legacy
"This collection of essays, written by regional authors, argues that the hardships faced by the region’s poor and marginalised, and the development challenges faced by its states, are to a significant degree the result of current and historic IMF and World Bank policies and programmes, which support an unjust and extractionist world economic order."
Opinion: How development lenders can regain the initiative from China
"Multilateral development banks and development finance institutions have the ultimate responsibility in de-risking projects to attract investment in the global south."
The Role of Multilateral Development Banks in Closing the Climate and Energy Transition Finance Gap
"In this brief we set out why and how MDBs can play a greater role in urgently addressing the climate finance gap in developing countries. The recommendations are designed to be practical and politically realistic. They build on several innovative proposals already being considered in public debate. But the brief also highlights that a key part of the solution involves MDBs fulfilling their traditional role, using existing approaches to financing projects and shaping policy, albeit on a much bigger scale and with much greater speed, in a renewed effort to overcome long-standing obstacles. All of this, of course, is motivated by the existential nature of the climate crisis."
Asian Development Bank to relax rules, lend $100B more over 10 years
"The Asian Development Bank plans to lend an additional $100 billion over the next 10 years, the latest push from multilateral development banks to do more to tackle global challenges, including climate change, with the resources they have. According to the bank, it will now be able to lend about $36 billion annually, roughly a 40% increase in lending. In 2022 the bank made about $20.5 billion in commitments."
October 2 to 8, 2023.
World Bank proposes ways to boost lending by over $100 billion
"The World Bank on Thursday proposed steps that would boost its lending to developing countries by an additional $100 billion over a decade as part of an ongoing reform process aimed at helping the bank expand its mission to include climate change. In a 24-page report to the joint ministerial committee that oversees the bank and the International Monetary Fund (IMF), the bank's management said it would ask shareholders to approve a hybrid capital measure and a new portfolio guarantee platform that together could boost lending by more than $100 billion."
Asian Development Bank unveils capital moves to boost lending by $100 billion over a decade
"The Asian Development Bank (ADB) unveiled new capital reforms on Friday that will unlock $100 billion in new financing capacity over 10 years as the lender expands its development and anti-poverty mission to tackle climate change and other global crises. The Manila-based lender said it was adjusting its risk appetite and reducing its minimum-level of capitalization in a way that preserves its top tier AAA credit rating while allowing it to expand its lending commitments by nearly 40% to about $36 billion annually."
World Bank's Ajay Banga on climate: 'My grandchild's time is running out'
"The plumbing was Ajay Banga’s retort when asked what imprint he’d like to leave on the anti-poverty lender, while the other encapsulates the World Bank president’s passion for taking on the “intertwined” challenges of poverty alleviation and climate change. Banga — who recently marked 100 days on the job — was just as passionate in pushing back on the notion that the bank can’t juggle its poverty mandate with a “perfect storm” of crises ranging from climate change and pandemics to food insecurity and fragility."
AfDB Maps Steps African Nations Need to Mobilize Climate Finance
"The African Development Bank began publishing detailed country reports to help the continent’s nations transition their economies away from fossil fuels and capitalize on green industrial opportunities. The reports are intended to “evoke sound, practical and implementable policies to enhance private sector financing for climate change and green growth,” Kevin Urama, chief economist of the Abidjan-based multilateral development bank, said in a statement on Thursday."
World Bank and IMF Reform Is On the Table. The U.S. Needs to Follow Through.
"The focus on multilateral development banks at the G20 meetings was a promising sign. But commitments and declarations are easy; the difficult part is yet to come, and reform efforts are already at risk of losing momentum. Finding common ground among China and other G20 members, delivering the necessary financing, and seeing through the transformations in how these institutions run will take sustained engagement, even as global attention moves to other issues. None of that can happen without the leadership of the U.S. If the Biden administration is serious about international financial institution reform—and it must be, given the scale of the climate crisis and the need to make progress on global poverty—it must stay the course and see these reforms to the end."
September 25 to 30, 2023.
Statement by World Bank President Ajay Banga, IMF Managing Director Kristalina Georgieva, and Morocco’s Minister of Economy and Finance Nadia Fettah Alaoui on the 2023 World Bank-IMF Annual Meetings
“Since the devastating earthquake in Morocco on September 8, the World Bank and the IMF staff have worked in close coordination with the Moroccan authorities and a team of experts to thoroughly assess Marrakech’s capacity to host the 2023 Annual Meetings. In undertaking this assessment, key considerations were that the Meetings would not disrupt vital relief and reconstruction efforts, and that the safety of the participants can be assured. Based on a careful review of the findings, the Managements of the World Bank and IMF, together with the Moroccan authorities, have agreed to proceed with holding the 2023 Annual Meetings in Marrakech from October 9 to 15, adapting the content to the circumstances."
From:
IMF
IMF, World Bank to proceed with annual meetings in Morocco in October
"The International Monetary Fund (IMF), the World Bank and Morocco on Monday announced the annual meetings of the two global institutions would proceed in October in Marrakech, despite a recent nearby earthquake that killed more than 2,900 people."
Yellen Pushes Treasury, World Bank to Fuller Climate Reckoning
"Janet Yellen planted a flag during her confirmation hearing in January 2021. Climate change, she declared, was an “existential threat,” and as Treasury secretary, she would make it a focus of her work. Since taking office, she’s warned of the danger to the economy and financial system. She’s urged Congress and foreign governments in the rich world to do more to help poorer countries adapt to global warming, and thrown the Treasury behind implementing President Joe Biden’s signature climate bill, seeking to squeeze the most from the sprawling new law."
NY climate week: Yellen warns of ‘significant economic costs’ of climate change
"US Treasury secretary Janet Yellen will announce a series of new financing “principles” on Tuesday aimed at spurring more private sector cash into climate and clean energy projects and combat greenwashing, in response to what she describes as the “significant economic costs” from global warming."
Financing Our Survival
"Between now and the end of this decade, climate-related investments need to increase by orders of magnitude to keep the world on track toward achieving even more ambitious targets by mid-century. Fortunately, if done right, such investments could usher in an entirely new and better economy."
Africa: Now is the Time to Make International Financial System Fit for Purpose - Kagame
"President Paul Kagame on Tuesday, September 19, stressed the need for reorganizing the international financial mechanism, describing the matter as a real substance for Africa's future, not a competition for the geopolitical influence that has been going on. Kagame made the call at a high-level roundtable titled "Towards a Fair International Financial Architecture" at UN headquarters on the sidelines of the 78th UNGA session. He noted that while he agrees with the notion of changing the world, much more can be done, without waiting."
G20 summit proved naysayers wrong – and showed Global South’s potential to address world’s biggest problems
"And yet, the assembled leaders did release a joint declaration on giving a new impetus to the World Bank, fighting climate change and dealing with infectious diseases, among other issues. One of the main outcomes was the admission of the African Union as a full member, much as the European Union has been from the start."
Inside the World Bank and IDB's plan to increase collaboration
"IDB President Ilan Goldfajn talks about his agreement with the World Bank to collaborate on preserving the Amazon rainforest, Caribbean disaster resilience, and increasing digital access across Latin America."
Energy Transition Accelerator and World Bank Announce Strategic Collaboration To Scale Up Clean Energy Finance
"The U.S. Department of State, the Bezos Earth Fund, The Rockefeller Foundation, and the World Bank today announced a strategic collaboration between the Energy Transition Accelerator (ETA) and the World Bank to mobilize finance to support just, accelerated energy transitions in developing countries. ETA – a partnership of the State Department and the two philanthropies – aims to catalyze private capital supporting the transition from fossil fuels to clean power through innovative jurisdictional-scale carbon crediting. The World Bank and its new SCALE (Scaling Climate Action by Lowering Emissions) initiative support developing countries in developing power sector policies and carbon market infrastructure needed to generate real emissions reductions in a participatory and inclusive way."
The main storylines at a gloomy United Nations
"This week, the United Nations has also structured in specific summits and conversations about climate change, buttressing global development goals since the disruption of the pandemic, and action on sovereign debt relief — with numerous developing countries on the hook to international lenders on terms that are jeopardizing their ability to invest in their own societies."
September 18 to 24, 2023.
G20 endorses multilateral development bank reform — but will it be enough?
"The G20 backed a joint agreement calling for “better, bigger and more effective” multilateral development banks but stopped short of offering any firm financial commitments, which experts say are needed alongside reforms."
A New Multilateralism: How the United States can rejuvenate the global institutions it created
"Far better for the United States is to take the lead in rebuilding the global order, and here it has the best possible hand. If Washington were sufficiently bold in confronting global problems that need global solutions, then it would not need to obsess so much about Beijing’s increasing influence. Instead, China would be faced with a defining choice: either work with the United States, as it says it wants to, or be exposed for talking about international cooperation and the importance of global institutions while only being interested in a “China first” policy. Today, it looks as if China has the interest needed to be a global beacon but not the values. America has the values but not, as things currently stand, sufficient interest. Values don’t change overnight, but interests can. It’s your move, America."
A Tragedy Is Unfolding in the Poorest Countries
"The world’s 28 poorest countries are facing growing social, economic, and political distress, owing to rising debt burdens, diminishing development prospects, and chronic underinvestment. The world’s wealthier countries have chosen exactly the worst moment to become less generous with aid and development assistance."
We need the G20 — but what is it for?
"If the G20 did not exist, we would have to invent it. Some would counter that the world is so divided that this grouping is unworkable. Yet this fact merely makes the G20, or something like it, even more essential: one does not have to talk to people one already agrees with. A still stronger justification for its existence is that we are no longer able to live in isolated pockets: the health of our planet and our economy depends on our co-operation. Since global challenges are more pressing than ever, so is the need to work together in such a group."
Financing Our Survival
"Between now and the end of this decade, climate-related investments need to increase by orders of magnitude to keep the world on track toward achieving even more ambitious targets by mid-century. Fortunately, if done right, such investments could usher in an entirely new and better economy."
Rule-Making in a Divided World
"The war in Ukraine has accelerated both the fracturing of the world order and countries’ scramble to establish new alignments that can secure their interests. Unless the G7 clarifies its direction, it risks losing its influence, with potentially far-reaching consequences for democratic values globally."
September 11 to 17, 2023.
G20 New Delhi Leaders’ Declaration
"We remain committed to pursuing ambitious efforts to evolve and strengthen MDBs to address the global challenges of the 21st century with a continued focus on addressing the development needs of low- and middle-income countries."
From:
G20
G20 backs bigger role for reformed World Bank
"India’s prime minister Narendra Modi has called for the mandate of multilateral lenders such as the World Bank to be expanded, as the IMF’s managing director demanded an increase in the lender’s resources by the end of the year. Efforts to boost the balance sheets and reform the governance of the Washington-based multilateral lenders have been a central issue at the G20 summit in New Delhi this weekend, partly as a means for western states to curry favour with developing nations amid geopolitical divisions over Russia’s war against Ukraine."
FACT SHEET: Delivering a Better, Bigger, More Effective World Bank
"President Biden is leading a major new initiative with G20 partners to fundamentally reshape and scale up the World Bank to more effectively deliver poverty reduction and inclusive economic growth—while better addressing global challenges that can undermine the achievement of these very goals."
India's Modi: there is need to expand mandate of multilateral development banks
"There is a need to expand the mandate of multilateral development banks and develop global standards to regulate cryptocurrencies, Indian Prime Minister Narendra Modi told G20 leaders during a summit of the bloc on Sunday."
The G20 has flaws but the world still needs it
"In an era of new superpower rivalries and the existential threat of climate change, it is in the global interest, too, for leaders of large but often antagonistic economies to sit down for “jaw-jaw”. The G20 has many flaws and inadequacies. But, aside from the dysfunctional UN, it is the best forum we have."
Can the G-20 Be a Champion for the Global South?
"The G-20 is well positioned to lead this charge and promote change across borders and global decision-making bodies. It holds significant sway in the United Nations and with the multilateral development banks that lend to indebted countries, and its member countries represent 65 percent of the world’s population and 80 percent of its GDP. But if the G-20 wants to solve age-old problems, it needs to embrace new ideas and more inclusive leadership—in New Delhi and beyond."
The Roots of the Global South’s New Resentment: How Rich Countries’ Selfish Pandemic Responses Stoked Distrust
"Of course, the COVID-19 era encompassed only a few of the litany of broken promises between the global North and the global South. But as richer countries struggle to understand the global South—and especially African nations’ ambivalent reaction to Russia’s war on Ukraine—the lingering effect of abandonment during the pandemic is underappreciated. Two kinds of failings defined the COVID-19 era for low-income countries: the global North’s hesitation to share resources equitably and its unwillingness to treat global South countries as equal partners in addressing a shared crisis. Until wealthy countries take concrete steps toward repair, the rift will only grow deeper."
A New Financing Pact for Climate-Vulnerable Countries
"The world’s most vulnerable countries bear the brunt of a climate crisis they did not create, underscoring the urgent need for a “fit for climate” global financial architecture. The Africa Climate Summit in Nairobi represented a unique opportunity to promote concrete solutions ahead of COP28 in Dubai later this year."
What the G20 Must Deliver
"The goal of the upcoming summit in New Delhi must be to advance progress toward a world where poverty is eliminated, the health of our planet is preserved, and vulnerable countries are better equipped to face the crises that arise from climate change and conflicts. Four principles will help guide the way forward."
Joe Biden pushes for bigger World Bank to combat China’s rising influence
"Joe Biden is pushing to secure international support to expand the World Bank’s lending capacity, as Washington comes under intense pressure to fund the fight against climate change and offer a viable alternative to China’s economic influence. The US president and top officials in his administration have placed efforts to enhance the financial firepower of the multilateral lender at the top of the agenda at the G20 leaders’ summit due in New Delhi this weekend."
Yellen to work with India at G20 Summit on communique crafting
"In her prepared comments, Yellen said she will work to build support to increase lending resources for the International Monetary Fund and the World Bank to help member countries deal with multiple global challenges, including new IMF quota resources."
Joint Statement of the IMF Managing Director and of the World Bank President
“The world confronts significant economic challenges, the existential threat of climate change as well as a digital transition, all in the context of more frequent shocks, high debt levels, limited policy space in many countries and rising geopolitical tensions. Well-designed and appropriately sequenced policies are critical to help accelerate growth, alleviate policy trade-offs, and support the green and digital transitions. The Bretton Woods institutions have a critical role to play to help member countries address the challenges and leverage the opportunities, working closely together and with partners."
IMF, World Bank to step up cooperation on climate, debt, digital transition
"The International Monetary Fund and World Bank on Thursday issued a rare joint statement pledging to step up their cooperation to address climate change, debt vulnerabilities and countries' digital transitions. The statement, released ahead of a G20 leaders summit in India this week, said the two institutions can help address mounting challenges facing the global economy - from increasing climate disasters to slowing growth and geopolitical fragmentation - by working together."
Opinion: Three big, bold ideas to douse the flames of a world on fire
"In New Delhi, where we hope the G-20 will become the G-21, some will simply admire the same problems that others are straining to solve. Some will bring sparks. Some might even fan the flames. But the world doesn’t need any more arsonists. The world needs its firefighters at last to leave the station, which means leadership that recognizes the danger we’re all facing. The three actions we put forward today can supply some of the speed and scale of response that’s required."
Biden to focus on World Bank reform, new funding at G20 in New Delhi
"U.S. President Joe Biden will focus on reforming the World Bank and urging other multilateral development banks to boost lending for climate change and infrastructure projects during the G20 leaders summit in India, the White House said on Tuesday. "That's one of our main focuses heading into the G20: delivering on an agenda fundamentally reshaping and scaling up the multilateral development banks, especially the World Bank," White House National Security Adviser Jake Sullivan told reporters."
September 4 to 10, 2023.
Yellen to attend India G20 summit, focus on economy, climate, Ukraine
"Yellen intends to focus at the summit on strengthening the global economy and supporting low- and middle-income countries by advancing efforts on debt restructurings, the evolution of multilateral development banks (MDBs) and building International Monetary Fund trust fund resources, the Treasury said."
G20 Leaders: The World Is in Crisis. We Need You to Act on Poverty, Hunger, and the Climate Emergency
"MDBs play a crucial role in achieving the UN Global Goals (or Sustainable Development Goals, SDGs), ending poverty, and tackling climate change. The G20’s own Independent Expert Group in 2023 emphasized their importance and the need to right size them with a triple agenda, including tripling MDB financing."
Multilateral banks are in ferment. Transform them
"As the world battles myriad challenges, transformative, and not incremental changes are needed for multilateral development banks. The time to act is now."
Reform the Global Finance System to Fund the Sustainable Development Goals
"Second, Multilateral Development Banks (MDBs) should operate at a much higher scale. Thanks to their governance system, MDBs—including the World Bank and regional development banks—can borrow and lend to their member countries at lower interest rates. When MDBs borrow on international markets, they offer more guarantees to lenders than individual countries because the loans are guaranteed by all their members. Yet, MDBs operate at a scale which is largely insufficient."
Why the Inter-American Development Bank-World Bank deal matters, and what’s next
"Amid ongoing geopolitical fragmentation and development challenges, empowering the collaboration between multilateral organizations such as the World Bank and the IDB is a hopeful sign of what is possible. It shows how longstanding institutions can begin to modernize to catalyze their own future effectiveness and broader global prosperity. The next challenge, as always, is to transform the ambition into reality."
Opinion: A blueprint for the next decade of development finance
"Governments worldwide are seeking financing to meet development goals. Institutions like ours must help by providing more climate financing and increasingly innovative financial instruments. As government officials and other partners gather for the 4th edition of the Finance in Common Summit, which will be hosted in Cartagena, Latin America, for the first time, we think three areas are especially promising for advancing this agenda."
Easing the burden: Reforms to multilateral lenders and money for developing countries on G20 agenda
"In early September, leaders from the world’s wealthiest countries meet in India for the G20 summit. With inflation and borrowing costs running high, debt and development are high on the agenda. Multilateral development banks provide vital funding to countries in need. But critics say financial conditions imposed by the lenders can keep debt burdens heavy and cut into spending on development. Should these multilateral lenders be reformed? Is there enough money and urgency to help countries drowning in debt? Tune in to UNCTAD’s Penelope Hawkins to find out how multilateral banks can make funding more available and more sustainable."
How can development finance institutions drive mobilisation?
"At British International Investment, we’re working to sharpen our approach to mobilisation. In Understanding Mobilisation, our first paper on the topic which was published earlier this year, we suggested a critical step towards more successful mobilisation by DFIs is to understand it better. In particular we argued there are many more capital events that can lead to mobilisation than those traditionally captured in the measurement of mobilisation. In our new paper, Driving Mobilisation, we dive deeper into two practical strategies that DFIs might adopt in pursuit of higher quality and greater levels of mobilisation. Both draw from commercial banking practises."
Re-thinking and Revitalizing SDG Financing
"Delays in implementing the Paris Agreement on climate change and 2030 Agenda increasingly appear to come partly from unmet financing needs as well as the inability and unwillingness of the G20 to move away from fossil fuel subsidies. The current state of play reflects the international financial architecture’s failure to channel resources to the world’s most vulnerable economies at the necessary scale and speed. A study by IDOS, IDDRI, and SEI finds effective SDG financing is possible when four main conditions are met."
India’s G20 Leadership: Elevating Capacity Building for Sustainable Development Financing
"India’s G20 Presidency has identified the mandate for the Finance Ministers and Central Bank Governors (FMCBG) as thus: “capacity building of the ecosystem for financing sustainable development.” The aim is to scale up efforts in mobilising large pools of global capital for sustainable projects, particularly in emerging and developing economies. Under the aegis of the Sustainable Finance Working Group (SFWG), the G20 proposes the development of the first Technical Assistance Action Plan (TAAP) that will create an ecosystem of capacity-building initiatives encompassing a series of advisory, operational, and technical programs. While the TAAP succeeds in proposing actionable recommendations for capacity-building providers, it does not incorporate a delivery mechanism nor an outcome-based approach to realise these priorities and ambitions. This paper recommends a deliverable-oriented framework for capacity building as identified by the SFWG under India’s G20 presidency."
Devex Invested: Can development banks find common ground in Colombia?
"The goal of next week’s summit is to get these institutions better educated and aligned with the Paris climate agreement and the Sustainable Development Goals. This year there will be a close look at small and medium-sized enterprises and financial inclusion, climate and biodiversity, sustainable infrastructure, strengthening national public development banks, and more. Colombia’s President Gustavo Petro is expected to make an appearance, as are the leaders of EIB and the Inter-American Development Bank. "
August 28 to 3 September, 2023.
World Bank’s private sector lab to focus on energy transition financing
“How to expand private investment toward helping low-income countries transition to renewable energy is the inaugural focus of the World Bank’s newly launched Private Sector Investment Lab. The lab, announced by the World Bank’s new president, Ajay Banga, in June, brings together 15 chief executives, including financiers and asset managers, to identify specific ways — including new financing structures and partnerships — the World Bank can help entice private investors to channel more money into low- and middle-income countries.”
From:
Sophie Edwards, Devex
Biden To Push IMF And World Bank Reforms At G20 Summit: White House
“US President Joe Biden will urge reforms to the IMF and World Bank that will better serve developing country needs at the G20 summit in New Delhi next month, the White House said Tuesday. White House National Security Advisor Jake Sullivan said that the two need to offer a better alternative for development support and financing to what he called China’s “coercive and unsustainable lending” through Beijing’s Belt and Road Initiative.”
From:
AFP, Barron’s
Limiting climate change requires rechannelling of Special Drawing Rights to Multilateral Development Banks
“Investments are needed around the globe to mitigate climate change, but it is in developing countries, where population growth and economic growth prospects are greatest, that climate mitigation investments need to grow the most. This column argues that closing the climate investment gap in these countries requires rechannelling of Special Drawing Rights to Multilateral Development Banks, which can bring down the currently often prohibitively high cost of climate finance to acceptable levels.”
From:
Dirk Schoenmaker and Rens van Tilburg, CEPR
China hopes expanded Brics will turn world upside down
“All this, China hopes, will give it the heft that Beijing has long sought to reform the way the world works. Indeed, China cherishes many ambitions, some of which were discernible through a heavy loam of diplomatic language in the 26-page declaration after the Brics summit this week… One of these demands was for an overhaul of the Bretton Woods institutions, the World Bank and the IMF. Currently, the operations of both institutions are dominated by the US, Japan and other western democracies.”
From:
James Kynge, Financial Times
The Global Order’s Triple Policy Challenge
“With sovereign debt at record levels and extreme weather events becoming more frequent and intense, policymakers must find a way to sustain economic growth, ensure financial stability, and mobilize the necessary resources to combat climate change. Achieving this requires nothing less than a new economic paradigm.”
From:
William R. Rhodes and John Lipsky, Project Syndicate
August 21 to 27, 2023.
World Bank’s green overhaul is slowly taking shape
“To step up the fight against climate change, World Bank President Ajay Banga wants to overhaul the lender’s balance sheet without overturning its credit rating. The bank’s new chief has a golden opportunity to expand the bank’s reach, thanks to support from U.S. Treasury Secretary Janet Yellen. At least $200 billion in extra resources each year need to materialise for the bank to do its part.”
From:
Rebecca Christie, Reuters
The World Bank must reform
“Reforming the multilateral development banks (MDBs) is an important aspect of the global reforms agenda under India’s G20 presidency. The World Bank Group (WBG), as the largest MDB, is the most prominent candidate for such reforms. By taking a lead in reforming itself, it can set an example for other MDBs.”
From:
Poonam Gupta, Business Standard
Rebeca Grynspan: Remodelling financing for Africa needs will from IMF, World Bank
“Multilateral development banks have to leverage the private investments needed for the continent but that is not happening. Only two percent of the renewable energy investment is coming to Africa. It doesn’t make sense in terms of your need and the universal access that you still need to achieve.”
From:
Vincent Owino, The East African
The à la carte world: our new geopolitical order
“For a telling insight into the seismic changes reshaping the global order, it is worth a glance at the official schedule of Kenya’s diplomats. There was a time when they were called upon to host delegations from global powers relatively rarely. No longer. Now there is barely a slot free in their calendar.”
From:
Alec Russell, Financial Times
August 14 to 20, 2023.
Deep dive: Progress on MDB reforms, but a long way to go
“It’s been a big year so far for the World Bank and efforts to reform multilateral institutions and the global financial system. But some major questions remain.”
From:
Adva Saldinger, Devex
August 7 to 13, 2023.
World Bank Group and Asian Infrastructure Investment Bank Work Together to Address G20 Capital Adequacy Framework Recommendations
"The World Bank Group and Asian Infrastructure Investment Bank (AIIB) have been working together to address the G20 Capital Adequacy Framework Working Group recommendations for Multilateral Development Banks to expand their use of financial innovation to provide additional lending capacity. The proposal would utilize AIIB’s capital surplus to issue $1 billion guarantees against sovereign backed loans made by the World Bank Group’s International Bank for Reconstruction and Development (IBRD), which would provide relief against capital constraints, enabling IBRD to provide fresh lending, as well as diversifying and enhancing AIIB’s portfolio, which would in turn enable it to increase lending to low-income borrowers. This proposal is subject to the respective approval process of both institutions."
From:
World Bank
ADB, African Development Bank Sign $1 Billion Sovereign Exposure Exchange Agreement
"The Asian Development Bank (ADB) and the African Development Bank today signed a $1 billion sovereign exposure exchange that aims to strengthen their capital adequacy levels and boost their lending capacity. The exchange is the third agreement between ADB and a peer multilateral development bank (MDB). The first two contracts were signed with the Inter-American Development Bank in 2020 and 2022 for a total of $2.5 billion."
From:
Asian Development Bank
African Development Bank achieves highest rating on proposed hybrid capital issuance
"The African Development Bank Group has received global recognition for its planned hybrid capital issuance, positioning the Bank as a pioneer in innovative sustainable financing. The S&P Global Ratings assigned an AA-rating to the Bank’s initiative, the highest rating for hybrid capital. The proposed issuance would be the first ever by a multilateral development bank."
From:
African Development Bank
July 31 to 6, 2023.
Financial Innovation and Multilateral Development Banks
“The ongoing policy debate on the global investment gap for sustainability is focusing on the mobilisation of available capital for the scaling up of investment. This Policy Brief considers to what extent international financial institutions can play a catalytic role in the effectiveness of this exercise with innovative products and proactive capacity building in the Global South. It is proposed that a financial innovation transfer channel from multilateral development banks (MDBs) to financial institutions in developing countries (estimated balance sheet US$ 600 billion and US$ 9,600 billion, respectively) be opened up in five areas—i.e., loan syndications, lending facilities, private equity participation, infrastructure project de-risking, and balance sheet optimisation. The climate change agenda is an opportunity for a streamlined approach on the diffusion of financial innovation. Expected benefits are procedures-related (efficiency and access to underserved markets) and product-related (for example, with the aggregation of financial transactions supporting climate finance adaptation.”
From:
Anthony Bartzokas, ORF
IDB Offers Backing for Novel Sustainability Bonds in Ecuador
“The Inter-American Development Bank Group’s private sector arm IDB Invest is the lead investor in two novel sustainability bonds in Ecuador styled on a model that proponents say significantly lowers the risk of greenwashing.”
From:
Natasha White, Bloomberg
Opinion: What additionality brings to blended finance
“In development finance, additionality refers to achievement of an outcome that would likely not happen without donor support. Based on USAID’s experience, here’s how additionality can help evaluate the impact of catalytic funding.”
From:
Natalie Alm and Sharon D’Onofrio, Devex
Global Public Investment for Global Challenges
“The G20 has for two decades played a leading role addressing risks and challenges to the global financial architecture and in innovating new structures in response. Today the world suffers from a series of interlinked crises. To address these challenges, this Policy Brief recommends that, at its India summit, the G20 leverage its track record of geo-economic leadership by taking concrete, initial steps to develop Global Public Investment: a new paradigm of international public finance that has the potential to meet 21st-century needs in climate, health, and other global, common challenges. Global Public Investment is a parallel arrangement to Official Development Assistance (ODA) in which all countries, not just donor countries, contribute and participate in priority setting and governance and in which all countries stand to benefit. This brief outlines how such a system could work and the G20’s potential role in initiating such an arrangement.”
From:
Simon Reid-Henry and Christoph Benn, ORF
July 17 to 23, 2023.
The World Bank Reflects Our Ambition
“In an environment of intertwined challenges – including an existential climate crisis, a fledgling pandemic recovery, and a crippling war on the borders of Europe – the World Bank has never been more relevant. But, to deliver solutions at scale, the Bank must adopt a new vision that is worthy of its stakeholders’ shared aspirations.”
From:
Ajay Banga, Project Syndicate
African Development Bank Moves Into Debt-for-Nature Swaps Market
“The African Development Bank Group is in discussions to back a new debt-for-nature swap, marking its entry into a fast-growing corner of the sustainable debt market. “We’re looking at one transaction [and] still discussing the parameters,” said Hassatou Diop N’Sele, vice president for finance and chief financial officer at the AfDB, in an interview. She declined to identify the country initiating the deal through which it would refinance its debt in exchange for allocating some of the savings to green projects.”
From:
Natasha White and Antony Sguazzin, Bloomberg
African states detail their needs on World Bank reform ahead of G20
“African states formed a unified position on World Bank reforms that centers their needs on fighting poverty and hunger and pushes back against the more narrow demands of wealthy Western shareholders that focus on climate change and pandemics. A document, agreed upon by consensus and representing the common position of African states, argues that food security, water, and affordable energy are “global public goods,” and lays out concerns about financing the digital transformation. It was issued ahead of the 20 leading rich and developing nations, or G20, finance ministers’ meeting in India coming up next week.”
From:
Shabtai Gold, Devex
How the Bridgetown Initiative envisions global financial system reform
“Mia Mottley’s initiative seeks to overhaul global finance to make climate finance available to vulnerable countries that are historically low carbon emitters. Three experts explain what’s at stake.”
From:
Shabtai Gold, Devex
Why the Paris Financing Summit Failed
“The June 22-23 Summit for a New Global Financing Pact promised to catalyze a revolution in climate finance and empower the Global South. But it failed to meet its lofty goals, concluding without a single firm commitment or concrete proposal to help developing countries reduce their debt burden and move away from fossil fuels.”
From:
Jayati Ghosh, Sandrine Dixson-Decleve, and Johannah Bernstein, Project Syndicate
G20 finance chiefs set to discuss reforms to development banks, crypto, debt
“Finance ministers and central bank governors of the G20 member nations are set to meet and discuss reforms to multilateral development banks, a framework for crypto assets and debt treatement of some countries, an Indian government official said Wednesday. India, which holds this year’s G20 presidency, will host global finance chiefs and deputies in the western state of Gujarat between July 14-18.”
From:
Reuters
Changing the Culture at the World Bank
“To tackle the complex challenges facing the World Bank, its newly-appointed President, Ajay Banga, must prove that the institution can become a vehicle for sustainable development and transformative change. But first, Banga must guide the Bank toward complete transparency.”
From:
Bertrand Badre and Peter Blair Henry, Project Syndicate
World Bank names CEOs to help bring private funds to climate, development finance
“The World Bank on Monday named 15 chief executive officers including financiers and asset managers to a group launched by the lender’s president, Ajay Banga, aiming to marshal more private capital to combat climate change and boost investment in developing countries. The “Private Sector Investment Lab” will begin work in the coming weeks, initially focusing on expanding financing for the transition to renewable energy and associated infrastructure, the bank said in a statement released at a climate meeting in Britain attended by U.S. President Joe Biden and King Charles.”
From:
David Lawder, Reuters
Reorienting IFIs for Meeting Emerging Development Financing Challenges
“The reform of international financial institutions (IFI) is moving at a ‘business as usual’ pace. The agility of IFIs, however, must be improved to respond swiftly during crises. IFIs will need to perform better in bridging the Sustainable Development Goals (SDGs) financing gap and ensuring greater economic resilience of least developed countries (LDCs) as well as developing economies that struggle to mobilise funding for expediting digital and green transitions. This Policy Brief suggests a multi-pronged strategy for the G20 in expediting the reform of IFIs so they can better deal with emerging challenges, including climate change and digital divide. These recommendations should also help IFIs decouple lending decisions from sovereign ratings, pursue innovative financing tools, and strengthen private capital mobilisation. IFIs should boost their regional coverage to expand cross-border and regional infrastructure financing.
From:
Arun S. Nair, Dandy Rafitrandi, Priyadarshi Dash, and Yose Rizal Damuri, ORF
July 10 to 16, 2023.
What the Paris Development Finance Summit Missed
“The biggest problem with global climate finance today is that only a small share of it goes to developing countries. Far more must be done to create a better working relationship between multilateral development banks and the major private investors that hold the key to closing the financing gap.”
From:
Havard Halland, Justin Yifu Lin, and Alan Gelb, Project Syndicate
G20 experts urge ‘inescapable’ capital increase for development banks
“Nine experts say multilateral development bank reform is possible — at a cost.”
From:
Vince Chadwick and Shabtai Gold, Devex
The World Bank’s Evolution Roadmap needs a rethink to deliver for the global south, say more than 70 civil society organisations and individuals
“As part of the consultation on the World Bank Group’s controversial Evolution Roadmap, organisations including the European Network on Debt and Development (Eurodad), the Bretton Woods Project, Christian Aid, Third World Network, and the Women’s Environment and Development Organization (WEDO) have produced a comprehensive briefing which contains recommendations that would transform the current problematic proposals.”
From:
Julia Ravenscroft, Eurodad
Reforming the Global Financial Architecture to Drive a Resilient Net-Zero Transition
“Global climate goals need continued attention in good times and in bad. However, the effects of recent global shocks have delayed progress on the net-zero transition, climate change adaptation and wider sustainability goals. Delay will increase the economic expense of transition and environmental damages. The global community can and must embed shock-proofing and shock-responsive approaches into fiscal policies and the evolving global financial architecture so that shocks no longer inhibit progress—this is referred to as a resilient net-zero transition. The G20, through its fiscal policies, financial regulation, and the Bretton Woods institutions, has a crucial role to play in shaping the architecture for a resilient net-zero transition. This Policy Brief recommends the creation of a dedicated financing facility for emerging and developing economies to help maintain progress on climate goals during crises; and that the G20 aligns the global financial system, including fiscal and development finance, with climate-resilient development.”
From:
Nicola Ranger, Brian O’Callaghan, Fulvia Marotta, and Sam Fankhauser, ORF
Paris climate summit: A new global financing pact takes shape
“But it was unrealistic to have expected too much. Yes, the developing countries of the Global South deserve much more. So do publics in Western countries, given the common interest in preserving the planet, global stability, and a sense of international justice. But we must also look for realistic ways forward and gauge things accordingly.”
From:
Roland Rajah and Georgia Hammersley, Lowy Institute
July 3 to 9, 2023.
The choice between a poorer today and a hotter tomorrow
“Suppose, for a minute, that you are a finance minister in the developing world. At the end of a year in which your tax take has disappointed, you are just about out of money. You could plough what little remains into your health-care system: dollars spent by clinics help control infectious diseases, and there is not much that development experts believe to be a better use of cash. But you could also spend the money constructing an electrical grid that is able to handle a switch to clean energy. In the long run this will mean less pollution, more productive farmland and fewer floods. Which is a wiser use of the marginal dollar: alleviating acute poverty straight away or doing your country’s bit to stop baking the planet?"
From:
The Economist
How misfiring environmentalism risks harming the world’s poor
“The reality of limited resources worsens the trade-off. The need to spend money decarbonising big developing economies that already offer citizens reasonable services threatens aid budgets which help pay for things like vaccines and schooling in the poorest parts of Africa. Unlike Brazil or India, say, such nations are unlikely ever to contribute significantly to global emissions.”
From:
The Economist
Rethinking Climate Finance for the Developing World
“For decades, rich countries have urged developing countries to shift away from fossil fuels while failing to heed their own advice or offer meaningful funding. Kenyan President William Ruto’s recent call to establish a new “global green bank” is the sort of thoughtful proposal that developed countries must seriously consider.”
From:
Kenneth Rogoff, Project Syndicate
What’s next on the road from Paris to Dubai for climate finance
“What was missing from Paris last week was most of the G7 country leaders, and any substantial new finance or debt cancellation for poor countries suffering disproportionately from climate change. The proposals for reform presented were also criticised by non-profit groups representing some of those most affected as too modest or not concrete enough.”
From:
Attracta Mooney and Kenza Bryan, Financial Times
Lessons from the Paris Summit for a New Global Financing Pact
“First and foremost, the results of the Paris Summit show that it is useful to maintain pressure on governments and international organizations to deliver on their pledges and commitments to various initiatives, as well as to agree to new ones to help DLICs. Even though each of the measures is insignificant compared to the overall needs, cumulatively many of them can provide tangible support to DLICs. More importantly, as mentioned earlier, countries should be aware of the risk of letting these debt alleviation and climate change mitigation initiatives be caught up and used as political scoring points in the geopolitical conflict between the West and China. This will make it difficult to build the consensus required to move forward in these efforts.”
From:
Hung Tran, Atlantic Council
Climate Finance Summit Fails to Deliver Critical Results for Vulnerable Countries
“So our call to the world’s development banks was to make loans more available to countries who need access to funding NOW; reform their processes so they can respond better to the climate crisis; and, amid a spiraling debt crisis that’s hitting low-income countries hard, find urgent solutions to the current debt crisis and shake up mechanisms to prevent further debt distress.”
From:
Camille May and Tess Lowery, Global Citizen
Devex Invested: Was Macron’s finance summit worth the hype?
“Our take? Macron took some flak for circumventing existing United Nations processes with a nonbinding, organization-heavy, deliverable-light gathering. And there was an element of theater in him taking out his pen and paper Friday morning to note leaders’ concerns from around the world — as if he didn’t know African leaders want Europe to do more to tackle illicit financial flows!”
From:
Vince Chadwick, Devex
In Paris, IMF and World Bank in hot seat as calls for reform grow
““The time is now, something’s happening, and there’s a lot of hope in the air.” This phrase, slipped in by the prime minister of a West African country on the side-lines of the summit for a new global financial pact, organised in Paris on 22 and 23 June, encapsulates a collective sentiment.”
June 26 to 2, 2023.
World Bank set to unveil ‘pause clauses’ for countries hit by disasters
“The World Bank will allow countries hit by disasters to pause repayments on loans to the multilateral lender, in a win for a campaign led by Barbados Prime Minister Mia Mottley. World Bank president Ajay Banga will unveil a range of measures, including the pause on repayments and embedding catastrophe insurance into new loans, in a speech in Paris on Thursday.”
From:
Attracta Mooney, Aime Williams, and Leila Abboud, Financial Times
IMF Touts $100 Billion for Poorest; Zambia Deal: Paris Update
“The International Monetary Fund confirmed rich countries have channeled $100 billion to finance lending for the world’s poorest economies, while Senegal announced $2.7 billion of energy-transition support and Zambia was set to clinch a debt restructuring at a summit in Paris on Thursday.”
From:
William Horobin, Akshat Rathi and Viktoria Dendrinou, Bloomberg
IDB and IMF to Deepen Ties to Catalyze Climate Reforms and Private Sector Resources for Climate Action
“The IMF and IDB will enhance strategies for countries to accelerate climate financing, including through policy reforms, capacity development support, and evaluating tailored financing arrangements—such as blended finance instruments, green bonds and others, including potential designs for a regional green fund structure—with each institution acting within its respective mandate – in order to explore further complementarities between the RSF-supported reforms and IDB funding and guarantees, to scale and mobilize much needed private climate financing.”
From:
IMF
An impasse over finance between rich and poor that threatens the planet
“It’s a strong argument. But it’s up against not just the potential reluctance of the rich countries to shell out but mistrust of multilateral institutions among middle-income powers. Meanwhile, geopolitical divisions over Ukraine have unhelpfully made relations between some advanced and developing countries trickier. The reform agenda deserves success, but it has a lot of entrenched suspicion to overcome.”
From:
Alan Beattie, Financial Times
A Green Transition That Leaves No One Behind (also in Washington Post)
“An estimated 120 million people have been pushed into extreme poverty in the last three years, and we are still far from achieving our United Nations Sustainable Development Goals by 2030. We should thus place people at the center of a strategy to increase human welfare everywhere.”
What It Will Take to Transform Development Finance
“The Bridgetown Initiative, launched in Barbados last summer and recently updated, calls on everyone to maximize investments in preventing and responding to climate-related events and pandemics. With the right strategy, multilateral development banks can play a central role in this urgent global mission.”
From:
Mia Amor Mottley and Werner Hoyer, Project Syndicate
Opinion: Strengthening the MDB system to meet the climate challenge
“”At the Summit for a New Global Financing Pact in Paris, I will ask my MDB peers to join hands in exploring new ways to improve our collective effectiveness,” AIIB President Jin Liqun writes in this opinion.”
From:
Jin Liqun, Devex
The green transition won’t happen without financing for developing countries
“In brief, this clever paper makes four points: first, macroeconomic risk makes climate projects unfinanceable in developing countries; second, the global climate challenge cannot be met if these projects are not financed on an enormous scale; third, markets exaggerate these risks, especially in bad times; and, finally, the expected gains of official intervention would exceed the costs, partly because so much is at stake.”
From:
Martin Wolf, Financial Times
“De-risking capital is key to scaling up development finance”, African Development Bank’s Adesina tells OPEC Fund forum
“African Development Bank Group president Akinwumi Adesina called for new ways of project preparation and de-risking of projects to mobilise private sector investment at scale for sustainable development. “We’ve got where the private sector is. We’ve got US$ 145 trillion of assets under management (and) by 2026 it’s going to be there… but the issue here is that we need new ways of aggregation to prepare the projects, to de-risk the projects and lower the transaction cost for those deploying capital,” Adesina reiterated.”
From:
AfDB
Multilateralism for the Future: New Challenges, New Models, New Solutions
“‘Problems without passports’ have driven the evolution of networked models of multilateralism that have had significant impacts, but still cannot overcome the gap between global challenges and solutions. In pursuit of its goal of building multilateral institutions for 21st-century challenges, the G20 should use its comparative advantage as a leadership forum to make these governance innovations more effective and inclusive. This policy brief recommends the G20 should support the establishment of an emergency platform to respond to systemic risks, launch a G20 Acceleration Initiative for the Sustainable Development Goals (SDGs) and for climate, and increase the capacity of the international system to think, plan, and act for the future. In a period when its presidency is held by countries from the Global South (Indonesia, India, Brazil, and South Africa), the G20 should use major global moments—the SDG Summit, Global Stocktake, and Summit of the Future—to benefit young countries where the majority of future generations will be born.”
From:
David Steven and Valeria Colunga, ORF
Paris Summit Aims to Shake Up the Financial System, Testing Leaders’ Resolve on Climate
“Masood Ahmed, president of the Center for Global Development think tank in Washington, isn’t expecting much concrete action from the gathering but a broad agreement that “we’ve got to think much bigger, much bolder. We need to be willing to change.””
From:
Fatima Hussein and Paul Wiseman, TIME
Comment: Paris summit needs to heed Mia Mottley’s call for shake-up of global climate finance
“Bringing that cost down means addressing the role of multilateral development banks (MDBs) and how they can work better as a system, aligned with the International Monetary Fund, to strike a balance between fiscal, macroeconomic and sustainability goals. It also means addressing the needs of government and the private sector for good-quality advisory services to enable finance to flow, and how to mitigate and hedge other risks that slow investment, including currency risks.”
From:
Rachel Kyte, Reuters
Unlocking Climate Trillions With a Global Plan From a Sinking Island
“A financial official from an island that’s among the world’s most vulnerable to global warming has a plan to quickly increase the amount spent on climate solutions in developing nations. And his plan requires little additional spending by rich countries. “If you focus only on grants, only on people transferring money to you, you’re never gonna get the scale we need to save the planet,” says Avinash Persaud, a Barbados-born, UK-raised development economist who was previously a banker in the City of London. His target for spending on emissions-reducing projects alone by developing countries is about $1.5 trillion per year — or seven times the sum rich countries currently give in overseas development aid for all causes, including health and poverty reduction.”
From:
Akshat Rathi, Bloomberg
June 19 to 25, 2023.
Sustainable Future Bonds: Boosting MDB Lending and Improving the Global Reserve System
“This policy brief presents a proposal for MDB hybrid capital that is designed to not only boost MDB funding but also supply the international reserve system with a new safe asset. We provide an illustrative example of how such a scheme could work and ultimately show that rechanneling a tiny fraction of the global foreign reserves could result in mobilizing at least $60 billion per year in fresh capital to MDBs. At that pace, by 2030, MDBs will have almost $500 billion in capital injections— which would result in a loan portfolio of more than $2.5 trillion. If properly deployed, such a level of financing could enable the MDBs to play a transformational role in a global transition to a low-carbon, resilient and more equal global economy.”
From:
Marina Zucker-Marques and Kevin P. Gallagher, Boston University
Scoop: Macron summit docs show limited vision for development banks
“Even the word “commit” was too strong for some.”
From:
Vince Chadwick, Devex
Can Avinash Persaud Convince Capitalists to Embrace Green Growth?
“Yet as he attempts to use the global shocks of the 2020s to his advantage, Persaud is also their captive: an embattled internationalist attempting to work through multilateral institutions with shrinking clout, promoting global public goods in a world increasingly fragmenting into rival blocs.”
From:
Lee Harris, Foreign Policy
Greening Public Financial Institutions: Lessons from the G20
“Steeper cuts to energy emissions will be needed to limit the average global temperature rise to 1.5˚C, and shifting public financial flows away from fossil fuels towards clean energy will be key to bridge the ‘Great Green Gap’. Greening public financial institutions (PFIs) will be critical to scaling financing for the Sustainable Development Goals (SDGs) and crowd in private capital. Through examining recent trends and select case studies on energy finance, this Policy Brief proposes solutions to improve data transparency on the portfolio emissions of PFIs, reform the international climate finance architecture, and build capacity among national and subnational PFIs through technical assistance programs to evaluate climate risks and green their portfolios. These solutions can strengthen the existing commitments of the G20 member states and inform G20 Working/Expert Groups.”
From:
Swasti Raizada and Natalie Jones, ORF
Explainer: What is the ‘Bridgetown Initiative’ asking for at Paris financial summit?
“President Macron hosts a summit in Paris this week to discuss reform of the world’s multilateral finance institutions in the face of climate change and other development challenges. A key topic of discussion will be suggestions from a group of developing countries, led by Barbados, dubbed the ‘Bridgetown Initiative’.”
From:
Reuters
What the Paris Finance Summit Must Do
“Western countries must join the effort to transform multilateral financial institutions, even if it means ceding some of their own influence to others who have previously been marginalized. And those pursuing systemic reforms must resist the temptation merely to tweak current arrangements.”
From:
Sebastien Treyer and Bertrand Badre, Project Syndicate
David Miliband laments the West’s divisive approach to tackling global crises
“Framing global challenges in terms of impunity versus accountability captures far more accurately than the democracy-autocracy dualism the multi-dimensional nature of the abuse of power in the international system. The global order is changing, and checks on the abuse of power—so-called “countervailing power”—need to be strengthened in a range of contexts, democratic and autocratic. The war in Europe matters a lot. But the transatlantic alliance needs to show that it understands that the war is just one of a series of global challenges, and it must step up to the others too.”
From:
David Miliband, The Economist
World Bank’s new chief wants ‘better bank’ before pushing for bigger bank
“World Bank President Ajay Banga wants to focus on improving the development lender so that he can earn the right to press member countries for more capital, as the new chief looks to expand its role in fighting climate change, pandemics and other crises. Banga said in an interview he would wait to seek a capital increase until he has made progress re-focusing the bank’s development lending on more impactful projects, made it more nimble and boosted lending with its existing balance sheet.”
From:
David Lawder, Reuters
Remarks by Secretary of the Treasury Janet L. Yellen at the Coalition of Finance Ministers for Climate Action Event
“That’s why Treasury and the Biden Administration are pursuing important policies to mitigate and adapt to climate change. Examples include our Inflation Reduction Act clean energy investments, which will have positive spillovers across the world. They also include our Just Energy Transition Partnerships in our partner countries – along with our initiative to evolve the multilateral development banks to better address global challenges like the climate crisis. We are also considering ways to encourage private sector delivery of net-zero commitments and activities.”
From:
US Treasury
Transcript: The Paris Meeting That Could Move Trillions to Climate
“Avinash Persaud has a plan, and it’s called the Bridgetown Agenda. Persaud is the special envoy on investment and financial services for Barbados; working with his country’s prime minister, Mia Mottley, he wants to transform the global financial system so that it helps developing countries roll out clean technologies like wind and solar much faster. Next week, Persaud will be presenting the latest version of the Bridgetown Agenda in front of world leaders in Paris, at a summit hosted by French President Emmanuel Macron. This week on Zero, Akshat Rathi sits down with Persaud ahead of the summit to discuss the details of his solutions, and why he thinks now is the time these aging financial institutions will be finally reformed. Learn more about the podcast here, and subscribe on Apple, Spotify, and Google to stay on top of new episodes.”
From:
Akshat Rathi, Oscar Boyd and Christine Driscoll, Bloomberg
Exclusive: World Bank chief to ‘push’ its balance sheet, vows to protect ‘AAA’ rating
“World Bank President Ajay Banga told Reuters that he will “push” the lender’s balance sheet hard to help fight climate change and other crises, but this may only yield tens of billions of dollars in additional annual lending, not the hundreds of billions hoped for by some. Banga said in an interview late on Tuesday that he will roll out steps in the coming weeks and months to evolve the World."
From:
David Lawder, Reuters
Developing countries have hit the financial rocks
“Yes, the shocks of recent years have made generous and effective action more politically difficult in high-income countries. Frightened people become inward-looking. But these shocks have also, beyond any doubt, made action more vital. Banga has inherited what is, if wisely used, an institution more valuable as a pulpit than as a bank. In these hard times, he must use it well, to bring the world together to tackle these highly urgent challenges.”
From:
Martin Wolf, Financial Times
World Bank’s new chief Banga to sharpen focus on projects with measurable impact
“World Bank President Ajay Banga wants the lender to focus on more “scalable, replicable” projects across Latin America and elsewhere for transport and infrastructure and digitization of government and financial services to speed development. Banga, on his first foreign trip since taking office, told Reuters on Monday that he wanted the bank to prioritize its work and “pick a few things and push them really hard, so that in my lifetime, I can measure the impact.””
From:
David Lawder, Reuters
June 12 to 18, 2023.
World Bank must drive private investment in climate transition, new chief says
“The World Bank must use “informed risk-taking” to encourage private investors to get more engaged in helping developing countries deal with climate change and leapfrog fossil-fuel energy sources, its new president Ajay Banga said on Sunday. Banga told CNN’s ‘Fareed Zakaria GPS’ program that efforts now underway to stretch the World Bank’s lending capacity and revamp its business model could potentially free up “tens of billions” of dollars, but not the estimated trillions of dollars needed to ensure a just energy transition.”
From:
Andrea Shalal, Reuters
Maximising the developmental value of MDB callable capital: a new research agenda
“A better understanding of callable capital’s value could result in a substantial increase in available lending headroom, within an overall framework of long-term financial sustainability and a AAA bond rating. This is an essential step in modernising the MDB financial model to face the challenges of the coming decades. This ODI research project directly addresses these issues. It was among the first recipients of funding announced by the MDB Challenge Fund at the 2023 Spring Meetings of the World Bank and International Monetary Fund. Preliminary research findings are expected by October 2023, and the final results by end-April 2024. For more details on the project team and research components, see the Annex below.”
From:
Chris McHugh, Eamonn White, Chris Humphrey, and Bianca Getzel, ODI
Background Press Call Previewing the Vice President’s Travel to the Bahamas
“More specifically, the Vice President and our administration are advocating for: One, significant new concessional financing delivered through a new window or other innovative mechanism to incentivize action on global challenges such as the climate crisis. Two, focus on the climate crisis and the mission of the World Bank. And three, renewed focus on mobilizing the private sector in support of these aims.”
From:
White House
Institutional Drift: Multipolarity, Bretton Woods, and Parallel Multilateral Development Banks
“The IMF and the World Bank constitute key components of the global governance architecture developed after the Second World War. As the world has become multipolar, however, the Bretton Woods Institutions (BWI) have largely failed to adapt their policies and organisational structures. The lack of influence in established governance institutions by non-Western economies has contributed to a sense of marginalisation and driven the increasing focus on developing parallel multilateral development banks (MDBs) that diffuse alternative norms and present alternatives to the BWI. While parallel MDBs can produce net benefits, their relative novelty and potential competition with the BWI also creates regulatory and operational challenges. This Policy Brief argues that the G20 must follow a two-track approach that pursues both reform of the BWI and coordination between the BWI and parallel MDBs to maximise positive development outcomes and reduce potential tensions.”
From:
Aaron Magunna, Observer Research Foundation
Reformed MDBs for a Just Energy Transition in Emerging Economies
“It is imperative for this year’s Indian G20 presidency to find solutions and push the agenda of MDB reform. The unique nature of the G20, i.e., members comprising of both shareholders and borrowers of MDBs, will be key in pursuing the reform agenda. The G20 could act as a forum to improve diplomatic relations between countries so that MDBs gain confidence to enhance their lending capacity. Considering the magnitude of financing required towards climate action and just transitions, this Policy Brief outlines pertinent recommendations towards MDB reform, which the G20 as a unique platform can push into their agenda.”
From:
Soham Banerjee, Amlan Mishra, and Tristan Ace, Observer Research Foundation
Reforming Financial Architecture to Achieve New Forms of Cooperation
“To scale up international public development and climate financing, the Secretary-General suggests: A massive increase in development lending and improved terms of lending; Changes to the business models of multilateral development banks (MDBs) and other public development banks to focus on SDG impact, as well as leveraging private finance more effectively for SDG impact; Massive increases to climate finance, while ensuring additionality; More effective use of the system of development banks to increase lending and SDG impact; And ensuring that the poorest can continue to benefit from the MDB system.”
From:
Elena Kosolapova, IISD
Readout of Vice President Harris’s Meeting with World Bank President Ajay Banga
“The Vice President underscored the Biden-Harris Administration’s strong support for World Bank efforts to make investments and spur policy reforms that reduce poverty and advance achievement of the Sustainable Development Goals. She praised the steps taken to evolve the World Bank—including expanding its mission to include building resilience to global challenges like climate change, pandemics, fragility and conflict. She underscored that addressing these global challenges is interlinked with and indivisible from the Bank’s work to eliminate extreme poverty and promote shared prosperity. The Vice President welcomed President Banga’s commitment and high ambition in driving forward this evolution initiative.”
From:
White House
Opinion: ‘Impact for the buck’ is right leverage ratio in blended finance
“To avoid these pitfalls, the initial and fundamental step in deploying blended finance is to build a credible impact thesis. The process involves critically assessing the determining factors that will maximize “impact for the buck.” Drawing on development economics theories and insights from past interventions are key factors for achieving success.”
From:
Matthieu Pegon, Devex
The west should pay heed to Ajay Banga
“He has a huge role at a critical inflection point in the global development story. Many of the global south’s millennium development successes have been reversed because of the pandemic and Russia’s full-scale invasion of Ukraine. This is a slow-burning crisis. A growing share of the west’s largesse is directed at Ukraine. That will be even more true in the years ahead as Ukrainian reconstruction becomes a priority. If we want to win hearts and minds in the global south, and reduce China’s grip over its client list, we will have to do far better than this. Banga should be given everything he needs to do this job.”
From:
Edward Luce, Financial Times
New World Bank chief under pressure as ‘Bridgetown initiative’ seeks $100bn
“The World Bank is under increasing pressure to reform, following a call for $100bn in fresh capital to drive climate and development finance ahead of a summit in Paris to be co-hosted by the leaders of Barbados and France. The proposal for extra capital and $100bn in foreign exchange guarantees are central to a big update, put forward by Barbados’s prime minister, Mia Mottley, of last year’s so-called Bridgetown Initiative to overhaul the lending institutions, in a consultation document seen by the Financial Times.”
From:
Aime Williams, Attracta Mooney, Camilla Hodgson, and Alice Hancock, Financial Times
Our Common Agenda Policy Brief 6: Reforms to the International Financial Architecture
“The present policy brief sets out action-oriented recommendations for reforming the international financial and tax architecture in six areas: a) Global economic governance; b) Debt relief and the cost of sovereign borrowing; c) International public finance; d) The global financial safety net; e) Policy and regulatory frameworks that address short-termism in capital markets, better link private sector profitability with sustainable development and the Sustainable Development Goals, and address financial integrity; f) Global tax architecture for equitable and inclusive sustainable development.”
From:
UN
To Tackle Climate Change, the Cycle of Crisis, Debt, and Underinvestment in the Global South Must End
“To bolster healthy democracies that can withstand the impacts of a changing climate, global financial infrastructure must change. The United States and other G7 nations must advocate for a transformative vision for IFI reform that pursues a core objective: enabling countries in the Global South—especially those most affected by climate change—to access and utilize a better quality and quantity of resources on the most equitable and least onerous terms possible. At the Paris summit, high-income countries should push for the following concrete vehicles to attain this goal.”
From:
Kate Donald, Frances Colón, and Anne Christianson, Center for American Progress
June 5 to 11, 2023.
Ajay Banga faces great expectations as he takes helm of World Bank
“On Friday, Banga takes over the largest global anti-poverty lender — which across its five wings last year did $114 billion in loans, investments, grants, and guarantees — as it’s in the midst of a potentially radical transformation. Debates rage about the trajectory of its ongoing reform process and whether the Washington-based institution will be capable of both fighting rising inequality and meeting clients’ increasingly urgent needs for money to deliver low-carbon economies and safeguard against worsening floods and droughts.”
From:
Shabtai Gold, Devex
World Bank’s New Chief Urges Faster Approvals and Focus on Climate Change
“The new leader of the World Bank said the lender needs to speed up project-approval times that now stretch for two to three years as it works to address trillion-dollar global challenges such as climate change and inequality. The bank needs to do more in less time, eliminating red tape and bureaucracy that slows its work, Ajay Banga said in a statement that was seen by Bloomberg News and shared with the staff on Friday, his first day as president.”
From:
Eric Martin, Bloomberg
World Bank’s new chief asks staff to ‘double down’ on development, climate efforts
“The World Bank’s new president Ajay Banga on Friday asked the lender’s 16,000 staff to “double down” on development and climate efforts as he seeks to accelerate the bank’s evolution to tackle the most pressing global problems. On his first day in the job, the former Mastercard (MA.N) CEO told staff in a memo seen by Reuters that he would seek to recruit each of them to work towards his vision “to create a world free from poverty on a livable planet.””
From:
David Lawder, Reuters
Ajay Banga Era Begins at the World Bank
“Ajay Banga officially became the 14th president of the World Bank on Friday and urged staff to join him in developing a “new playbook” for a global institution whose relevance has come into question in recent years. The ascension of Mr. Banga to be the next leader of the bank comes at a pivotal moment in its 77-year history. The global pandemic reversed decades of progress in poverty reduction, Russia’s war in Ukraine continues to be a threat to economic stability and the World Bank is under new pressure to become a more ambitious player in the fight against climate change.”
From:
Alan Rappeport, New York Times
READOUT: Secretary of the Treasury Janet L. Yellen’s Meeting with Incoming World Bank President Ajay Banga
“Today, Secretary Yellen met with Ajay Banga at the Treasury Department ahead of his taking office as World Bank President on Friday. During their engagement, Secretary Yellen warmly welcomed Banga’s upcoming presidency and conveyed her strong desire for Treasury to continue close collaboration with Banga in building on the strong progress made so far on evolving multilateral development banks (MDBs). That includes continuing implementation of the recommendations of the G20 Capital Adequacy Framework review to get the most out of the Bank’s balance sheet, and improving and increasing the amount of private capital mobilized for our shared global development objectives and to refine the operating model to increase the responsiveness and agility of the bank. Secretary Yellen also reiterated the importance of the World Bank working more closely with its sister development banks.”
From:
U.S. DEPARTMENT OF THE TREASURY
Interview: Nothing off limits on World Bank reforms, Malpass says
“David Malpass will walk out of the World Bank on Thursday for the last time as president, happy with his four years at the helm of the global anti-poverty lender, but insisting the organization must “leave no stone unturned” in its reforms to better tackle rising poverty, high inflation, and the climate crisis.”
From:
Shabtai Gold, Devex
Ajay Banga Assumes World Bank Leadership: Advancing Climate Action And Disaster Debt Relief
“Ajay Banga, the former CEO of Mastercard, is poised to assume leadership at the World Bank this week, marking the potential start of a transformative era for the nearly 80-year-old institution. This transition presents a significant opportunity for renewed leadership and accelerated support in addressing poverty and climate change. By prioritizing critical reform initiatives early in his term, like debt suspension clauses, as well as securing additional resources, the World Bank can gain early momentum behind enhancing the role it plays in combating climate change while steadfastly upholding its primary mission of eradicating extreme poverty.”
From:
Michael Sheldrick and Global Citizen, Forbes
Exclusive: IMF, others should give $100 billion climate foreign-exchange guarantee, document says
“A top-level meeting in Paris next month will lay out a $100 billion plan to drive more money into climate and development finance in poorer countries by providing currency guarantees to investors, according to a document seen by Reuters. The plan, which has not previously been reported, was sent to the world’s governments ahead of the “Summit for a New Global Financing Pact” in Paris in June by the Bridgetown Initiative spearheaded by Barbados leader Mia Mottley.”
From:
Simon Jessop and Marc Jones, Reuters
Debt Crisis Looms for Poorer Nations Most Vulnerable to Climate Change
“One option would be for multilateral organizations such as the International Monetary Fund and World Bank to step in as guarantors of projects to allow private investors to get involved without taking on so much risk. “We need to focus on how to drive more private sector climate finance mobilization,” said Norbert Ling, ESG Credit Portfolio Manager at Invesco Asset Management in Singapore. “The role of multilateral development banks in scaling up climate finance is strong, they can de-risk projects for the private sector.””
From:
Antony Sguazzin, Ronojoy Mazumdar and Prinesha Naidoo, Bloomberg
African Development Bank driving innovation to scale up climate adaptation
“Innovative approaches and solutions will be critical to scale up adaptation efforts across the African continent. This includes the African Development Bank-supported Adaptation Benefit Mechanism and the Africa Adaptation Acceleration Program. The latter is a joint initiative between the Bank and the Global Center on Adaptation.”
From:
AfDB
Once again, IDA steps up with flexibility and resources amid crises
“So once again, IDA is stepping up to the challenge. The World Bank Board just approved the recommendation to set up the IDA Crisis Facility, which will scale up support for the world’s poorest countries. It will help address worsening development challenges due to the overlapping global crises, particularly food insecurity and extreme climate events. In the spirit of global solidarity that underpins IDA, it will also join international efforts to drive recovery and reconstruction in Ukraine, and address impacts of the conflict in neighboring Moldova—home to an influx of Ukrainian refugees.”
From:
Akihiko Nishio, World Bank
The latest reform updates and announcements from the multilateral development banks.
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