Reforming the multilateral development banks will not be enough to yield the amounts of money needed to tackle climate change and fight poverty in the 21st century, and wealthy shareholders must put more money into the system, a group of experts said in a lengthy report for the Group of 20 leading economies obtained by Devex.
Nine experts, co-led by former U.S. Treasury Secretary Lawrence Summers and the Institute of Economic Growth President NK Singh, were tasked by the Indian presidency of the G20 with outlining a road map for reforming institutions such as the World Bank and tackling the urgent challenges of the modern era.
The experts’ clear call for a capital increase — they say they are “ inescapably led” to urge one — comes after the World Bank earlier this year proposed reforms to get out $50 billion in additional lending over the next 10 years, and U.S. Treasury Secretary Janet Yellen, who is spearheading reforms, said her goal is to get to $200 billion across all the multilateral lenders.