A two-day summit in Paris this week is billed as a chance to strike a new financial pact between wealthy nations and those most at risk from climate change and crippling debt.
Yet internal documents seen by Devex show countries in many cases deferring the big questions on when and how to reform multilateral development banks, the concessional lenders seen by many as critical to boosting access to finance for low-income countries.
MDBs like the World Bank and European Investment Bank have come under increasing scrutiny in recent years, criticized for being too risk averse and not doing enough to help countries adapt to the impact of climate change. A report by the Group of 20 major economies last year prompted the banks to evaluate their capital adequacy framework, while a separate expert group, convened under India’s G-20 presidency, is also due to make recommendations in coming days.