E-Paper
Historic opportunity to reform World Bank: FM
FM Sitharaman made the comments during a roundtable on “MDB evolution: Building Shareholder Consensus”, hosted by United States treasury secretary Janet Yellen.
With discussions around the evolution of multilateral development banks (MDBs) intensifying, Union finance minister Nirmala Sitharaman on Wednesday said that the calls to reinvigorate the World Bank present a “historic opportunity” to make the institution “fit for purpose” to achieve sustainable development goals as well as address national and global developmental challenges.
Sitharaman made the comments during a roundtable on “MDB evolution: Building Shareholder Consensus”, hosted by United States treasury secretary Janet Yellen during the spring meetings of the International Monetary Fund and the Bank in Washington DC.
According to the ministry of finance, the discussions focused on the impact of challenges such as the climate crisis, pandemic, fragility and conflict on development progress as well as the reform at the World Bank.
ALSO READ: Debt crisis key priority of India’s G20 presidency, says FM in US
Sitharaman flagged two issues concerning MDB evolution. These include “building consensus on the definition of global development challenges” and “augmenting the financial and operational capacity” of the World Bank Group.
She also said that in the spirit of multilateralism, the evolution dialogue needed to be “inclusive, consensus-based, and recognise, in full measure, the development perspectives and priorities of client countries”.
The Bank is in the middle of a process to reframe its mission statement, operating model, and financial model.
The Bank’s Development Committee will discuss an “evolution roadmap” this week, even as the G20 has set up an expert group co-chaired by veteran Indian policymaker NK Singh and former US treasury secretary Larry Summers on reforming MDBs.
Among the fault lines in the reform process are questions about the right balance between climate and development assistance, and climate emission and adaptation priorities.
The Bank, according to road map, requires $2.4 trillion to meet expanded commitments which, in turn, will require the deployment of newer forms of resource mobilisation, including an expanded role for the private sector. The US has nominated the India-born, American corporate leader, Ajay Banga, to take over as the Bank’s president to herald this phase of change.
