The Multilateral Development Bank (MDB) evolution dialogue needs to be inclusive, consensus-based and recognise in full measure the development perspectives and priorities of client countries, finance minister Nirmala Sitharaman said at a roundtable hosted by US treasury secretary Janet Yellen at the World Bank headquarters.
Sitharaman highlighted two fundamental issues concerning MDB evolution: Building consensus on the definition of global development challenges and augmenting the financial and operational capacity of the World Bank Group (WBG).
“@nsitharaman stated that the calls to reinvigorate the @WorldBank present a historic opportunity to make the institution ‘fit for purpose’ to achieve the #SDGs alongside addressing national as well as global development challenges, both present and future,” the finance ministry tweeted.
The roundtable discussion in Washington focused on the impact of global development challenges like climate change, pandemics, fragility and conflict on development progress, and reforms at the the World Bank.Yellen said, “We have sharpened the mission of the World Bank. The Bank’s mission now highlights the importance of inclusion, sustainability and resilience to global shocks in achieving its Twin Goals. In short, we have a bank that strives to end extreme poverty, boost shared prosperity and build resilience.”She said other operational reforms include bolstering the Bank’s crisis response toolkit and prioritising mobilisation of additional private capital and domestic resources.
The bank has a long tradition of undertaking financial innovations to responsibly stretch its existing balance sheet. Shareholders have agreed to undertake reforms that could add up to $50 billion in financing over the next 10 years – while protecting the Bank’s credit rating and long-term financial sustainability, she said.Ajay Banga — US nominee for President of the World Bank – is the right leader to take the baton and accelerate “our work to evolve this institution”, she added.