The world is on fire, literally and figuratively. This is a uniquely challenging moment. The global economy is fracturing, growth is decelerating, and trust is eroding. There is no hope for meeting global or most national ambitions, or avoiding the immense risks we face, along current paths and plans. There is, however, an alternative path that requires decisive action and transformative investments. It is based on unlocking key investments in emerging markets and developing economies (EMDEs). This can both manage and radically reduce the risks and offers a huge opportunity for sustainable, resilient, and inclusive growth for all.

A world on fire requires the multilateral development banks (MDBs) to be at center stage in creating an effective response and bringing diverse actors to support a shared agenda of transformative development. MDBs have a distinctive comparative advantage in playing a catalytic role in fostering government and private sector investments. They bring together a package of knowledge, affordable financing and efficient risk management. They are long-term partners who, in an increasingly fractured world, have a long history of working with countries and bringing all stakeholders together in a cooperative framework.