United Nations Secretary- General Highlights India’s Multilateral Development Banks (MDBs) reform Efforts

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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).
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.

Tripling the annual lending levels of MDBs to $390 billion by 2030;
Adopting a triple mandate for MDBs to eliminate extreme poverty, boosting shared prosperity and contributing to global public goods;
Expanding and Modernizing funding models.
Other: Enhancing engagement with the private sector to the center of MDB operations, etc.