This report of an Independent Expert Group (IEG) commissioned by the Indian G20 Presidency argues for radically reformed and strengthened MDBs to address the
immense global challenges in today’s world.
MDBs have a key role to support the needed reforms and resources. They work with governments and the private sector to create the conditions for investment and
transformation. They are the most effective institutions to provide low-cost, long maturity financing, to mitigate risks faced by private investors, and to share risks in the most efficient way. However, to transform development, the MDBs will have to transform themselves. This IEG's report recommends a triple agenda to harness the potential:
(i) adopting a triple mandate of eliminating extreme poverty, boosting shared prosperity, and contributing to global public goods;
(ii) tripling sustainable lending levels by 2030;
(iii) creating a third funding mechanism which would permit flexible and innovative arrangements for purposefully engaging with investors willing to support elements of the MDB agenda.
Effective implementation of the triple agenda requires important changes in the ways that MDBs operate. Individually and collectively, MDBs must become effective agents in all developing countries for integrating the development and climate agendas, working with governments and the private sector to reduce, share and manage
risks and thereby bring down the cost of capital.