Mitarbeiter sonstige

Download PDF

Reform of the multilateral development banks: how FfD4 can support it

in: Stephan Klingebiel / Jorge A. Pérez-Pineda / Kathrin Berensmann, Financing for development: From Monterrey to Seville, Bonn: German Institute of Development and Sustainability (IDOS), 79-83

Multilateral development banks (MDBs) have been key actors in financing sustainable development for the past eight decades. Recent reform efforts, mainly led by the G20 countries, have expanded MDBs’ mandates to include addressing global challenges such as climate change and  boosting their financing capacity while also calling on them to work as a system. The Fourth International Conference on Financing for Development (FfD4) – being a more inclusive and universally representative UN-led process than the G20 – should endorse and advocate for the  acceleration of ongoing MDB reforms. In particular, the FfD4 Outcome document should emphasise that, in light of the expanded mandates of the MDBs, failure to achieve a comparable augmentation of their financial capabilities could result in an undesirable but inevitable redirection of  resources, from poverty alleviation and shared prosperity to predominantly addressing global challenges such as climate change. In this regard, FfD4 can play a pivotal role in advancing reforms in two key areas for boosting MDB capital that have seen limited progress thus far: leveraging callable capital and utilising special drawing rights (SDRs) to invest in hybrid capital vehicles designed by MDBs.

About the IDOS author

Walle, Yabibal

Development Economics

Further IDOS experts

Baumann, Max-Otto

Political Science 

Berensmann, Kathrin

Economy 

Breuer, Anita

Political Scientist 

Dick, Eva

Sociologist and Spatial Planner 

El-Haddad, Amirah

Economy 

Fasold, Maximilian

Political Economy 

Haldenwang, Christian von

Political Science 

Hilbrich, Sören

Economy 

Houdret, Annabelle

Political Scientist 

Leininger, Julia

Political Scientist 

Mchowa, Chifundo

Development Economics 

Morare, Ditebogo Modiegi

Political Science 

Möschl, Tim

Governance 

Nowack, Daniel

Political Science 

Roll, Michael

Sociology 

Sommer, Christoph

Economist