The Center for Global Development (CGD) has introduced a new tool, the Multilateral Development Bank Reform Tracker, to monitor reforms at the World Bank and five other major multilateral development banks (MDBs). The tool was launched on Monday by a team that includes Nancy Lee, Karen Mathiasen, Victoria Dimond, Samuel Matthews, and Rakan Aboneaaj.
The tool will provide biannual updates or adjustments in response to significant changes. It aims to track progress on three critical reform agendas: the G-20 Independent Review of MDB’s Capital Adequacy Frameworks, The G-20 Independent Experts Group Report of Strengthening the MDBs, and The Summit for a New Global Financing Pact aligned with the Bridgetown Agenda.
Despite advancements like enhanced lending limits and innovative finance programs, many reforms are still in the planning stage. The CGD team uses public information and direct bank consultations to evaluate progress. However, the pace of reforms is not keeping up with the urgency of crises, primarily due to donors’ limited willingness to pay.
The World Bank has incorporated “livable planet” into its mission statement under pressure from its largest shareholder, the US. This move has been welcomed by researchers. Yet, debates continue on how to integrate global challenges such as climate change into bank operations and secure their financing.
Critics argue that MDBs could unlock more capital without jeopardizing their AAA credit rating. They also call for a wider inclusion of MDB borrowing countries in reform discussions that are typically dominated by Northern Hemisphere voices and major emerging markets. The management of MDB balance sheets remains a contentious issue.
The introduction of this tool comes ahead of the World Bank-IMF Annual Meetings in Marrakech. All banks are considering comprehensive reforms in areas like Sustainable Development Finance work and addressing record debt in poorer countries.
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