{"id":249810,"date":"2023-06-27T20:31:20","date_gmt":"2023-06-27T15:01:20","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=249810"},"modified":"2023-08-31T16:22:34","modified_gmt":"2023-08-31T10:52:34","slug":"reforming-multilateral-development-banks-advocating-for-the-global-south","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/reforming-multilateral-development-banks-advocating-for-the-global-south\/","title":{"rendered":"Reforming Multilateral Development Banks, advocating for the Global South"},"content":{"rendered":"\n<p><strong>Source<\/strong>&#8211; The post is based on the article <strong>\u201cReforming Multilateral Development Banks, advocating for the Global South\u201d <\/strong>published in \u201cI<strong>ndian expres\u201d <\/strong>on <strong>2<\/strong><strong>7<\/strong><strong>th June 2023<\/strong>.<\/p>\n<p><strong>Syllabus: <\/strong>GS3- Economy<\/p>\n<p><strong>Relevance:<\/strong> Multilateral Development Banks and the need to reform them<\/p>\n<p><strong>News &#8211; <\/strong>\u00a0President Joe Biden and PM Modi underscored the need to strengthen and reform the multilateral system to reflect contemporary realities.<\/p>\n<h2><strong>What is<\/strong><strong> the relevance of MDBs<\/strong> <strong>and the need to reform them<\/strong><strong>?<\/strong><\/h2>\n<p>World Bank Group (WBG) \u00a0was responsible for providing<strong> financial assistance<\/strong> for the post-war reconstruction and economic development of the less developed countries.<\/p>\n<p>The WBG <strong>lends to low-and middle-income<\/strong> (LICs and MICs) countries , <strong>to the private sector<\/strong> and encourages<strong> private companies to invest in foreign countries<\/strong><strong>.<\/strong><\/p>\n<p>These institutions are<strong> no longer suited <\/strong>in terms of the resources, cultural ethos and methods to address the emerging challenges. These relate to <strong>global public goods, climate change and pandemics<\/strong>.<\/p>\n<p>MDBs are in a quag<strong>mire, trapped in their procedures, approach <\/strong>and methods of work and reticent to structural changes.<\/p>\n<p>The new challenge is<strong> transboundary issues<\/strong> and the opportunities connected with climate change.<\/p>\n<h2><strong>How do we secure credible sources of finance to meet these enhanced challenges?<\/strong><\/h2>\n<p>The MDBs need to<strong> optimise their current balance sheets<\/strong> to create higher leverage from existing funds and to attract private capital.<\/p>\n<p>They need to<strong> fix annual targets and judge performances<\/strong> by the outcomes secured in this altered framework of accountability.<\/p>\n<p><strong>De-risking approaches<\/strong> such as<strong> blended finance and guarantees<\/strong> aimed at tilting the balance do exist.<\/p>\n<p><strong>Financial channels<\/strong> for capital mobilisation need to be strengthened.<\/p>\n<h2><strong>What is the way forward?<\/strong><\/h2>\n<p>Broad and deep changes are required to significantly strengthen performance, such as <strong>first loss guarantees, realistic return targets and risk management<\/strong>.<\/p>\n<p>For India, reforming MDBs would mean <strong>advocating the voice of the Global South<\/strong>.<\/p>\n<p>Making MDBs more relevant for<strong> addressing 21st-century challenges <\/strong>would contribute towards enhancing human welfare.<\/p>\n<p><strong>Deeper integration with multiple stakeholders<\/strong> is crucial.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source&#8211; The post is based on the article \u201cReforming Multilateral Development Banks, advocating for the Global South\u201d published in \u201cIndian expres\u201d on 27th June 2023. Syllabus: GS3- Economy Relevance: Multilateral Development Banks and the need to reform them News &#8211; \u00a0President Joe Biden and PM Modi underscored the need to strengthen and reform the multilateral&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/reforming-multilateral-development-banks-advocating-for-the-global-south\/\">Continue reading <span class=\"screen-reader-text\">Reforming Multilateral Development Banks, advocating for the Global South<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184],"class_list":["post-249810","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":{"total":2,"cached_at":"","cached_date":1698334066},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/249810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=249810"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/249810\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=249810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=249810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=249810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}