Reforming Multilateral Banks Key to Unlocking Capital for Developing Nations

Political will is an issue for expanding capital in multilateral development banks (MDBs) due to deficits and nationalism.
MDB shareholders insist on reforming the institutions before expanding capital.
MDB capital expansion can provide high leverage if done efficiently.
Reforms like reallocating IMF special drawing rights have had little impact so far.
Lawrence Summers believes India can grow 8% annually to transform lives if reforms are made by 2050.

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9/23/2023

India's Economy Could Grow 8-Fold by 2050 with Reforms and MDB Support, Says G20 Expert Group

Former US Treasury Secretary Lawrence Summers believes that a combination of free market forces, infrastructure improvement, and public sector reform could lead to an eight-fold expansion of India's economy by 2050, with an annual growth rate of 8%. Summers also urged multilateral development banks (MDBs) to address pressing issues like climate change, warning that failure to do so may lead to the creation of new institutions. Summers emphasized the importance of transforming MDBs to meet the challenges facing the world.

10/8/2023

U.S. Treasury Pushes World Bank to Unlock More Financing for Developing Countries

The U.S. Treasury Department is urging the World Bank and other multilateral development banks to leverage shareholder capital commitments to increase lending capacity for developing countries by April 2024 in order to address global challenges like climate change and poverty.