Multilateral development banks share a common purpose: to be at the service of global development through the provision of finance and technical expertise. And yet, each MDB has a unique role, reflecting its specific mission, its decision-making structures, the different geographical realities of its recipients, and the varying priorities of its shareholders.
But that does not mean that they cannot work better as a system. Indeed, the MDB reform agenda that has gathered momentum in recent months places a strong premium on collaboration, not just coordination. The reason is simple: the challenge of the Sustainable Development Goals, the scale of the climate crisis, the complexity of the issues at hand, and the size of the financing gap are such that success will be impossible if each institution chooses to work alone.
A succession of global economic shocks has squeezed the space for government spending. At the same time, the scale, length, and severity of the economic, social, and environmental challenges the world faces are growing every day. In this age of “poly-crisis,” it is the responsibility of all international financiers — and particularly government-owned MDBs — to urgently step up the volume and impact of their operations.
About the authors
Sir Suma Chakrabarti
Sir Suma Chakrabarti is Chair of the Board of Trustees of ODI and adviser to the presidents of Kazakhstan and Uzbekistan on economic development, effective governance, and international cooperation. His previous roles include president of the EBRD and permanent secretary at the U.K.’s Department for International Development and Ministry of Justice.
Sir Danny Alexander
Sir Danny Alexander is vice president for policy and strategy at the Asian Infrastructure Investment Bank. Prior to joining AIIB in February 2016, he was chief secretary to the U.K. Treasury and was one of the leaders of the U.K.’s coalition government between 2010 and 2015.
