- The Secretary- General has also said that the reform of MDBs will be a key theme at the Summit of the Future 2024.
- Summit of the Future 2024 will be hosted by the United Nations General Assembly (UNGA).
- Summit of the Future 2024 will be hosted by the United Nations General Assembly (UNGA).
- About MDBs:
- MDBs are international financial institutions that provide financial and technical assistance to developing countries.
- These banks are owned by multiple member countries and operate globally to promote economic development, reduce poverty, and support sustainable growth in their member countries.
- Major MDBs include the World Bank Group, Asian Development Bank, etc.
- Need of Reforming MDB’s:
- Adaptation to changing development needs of the 21st century: It includes climate change, income inequality etc.
- Representation and Voice: Developing countries are pushing for greater voting power and a more equitable say in MDB decision-making.
- Private Sector Mobilization: MDBs traditionally focus on public financing. Reforms aim to leverage private capital alongside MDB resources to multiply development impact.
- Challenges in Reforms: Difficulty in achieving consensus among diverse member countries, limited financial and technical resources for implementing reforms, slow approval processes etc.
Recommendation of independent expert group (IEG) on MDB reform (set up during India’s G20 presidency):
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