Triple Agenda Report

• The G20 expert group has presented a roadmap in its report The Triple Agenda:
• A Roadmap for Better, Bolder and Bigger MDBs) for enhancing the performance of Multilateral Development Banks (MDBs) to be bigger, better, and bolder by 2030. 
• The group, led by Lawrence Summers (US treasury secretary) and NK Singh (chair of the 15th Finance Commission), has recommended several measures for MDBs.

 What are MDBs?

• MDB is a financial institution established by multiple member countries and falls under international law. E.g., International Monetary Fund, World Bank, Asian Development Bank etc.
• Objectives of MDBs: Stabilizing the global financial system during the time of crisis; Providing long-term financing; Providing lower-cost financing.

 Role of MDBs in global stability and development

Role of MDBs	Description	Examples/Actions
Funding Development Projects	ADB’s support for the Delhi-Mumbai Industrial Corridor
	World Bank’s assistance in the development of National Waterway 1 on the Ganges River
Crisis Management	World Bank’s support for India during the COVID-19 pandemic
Supporting the Implementation of the SDGs	World Bank provided grants to support education and healthcare programs, such as the Sarva Shiksha Abhiyan (Education for All) program and the National Rural Health Mission
Policy Advice and Capacity Building	Providing policy advice and technical assistance for governance and capacity building	IMF’s advice on macroeconomic policy for countries like Sri Lanka and Pakistan
Providing Concessional Finance and Grants	Offering concessional finance and grants to LICs and FCS to address development challenges	MDBs’ support for low-income countries and fragile states
Promoting Inclusive Growth and Shared Prosperity	Assisting MICs in reducing inequalities and improving access to essential services

 Challenges for reforming MDBs

• Adapting to Global Challenges: MDBs must adapt to address emerging global issues like pandemics and conflicts, responding quickly to changing circumstances.
• Resource Constraints: MDBs face limitations in funding to meet growing demands, especially in climate change and infrastructure development.
• Mobilizing Private Sector: MDBs struggle to attract private sector investments, requiring risk mitigation and incentives.
• Addressing Climate Change: MDBs need to incorporate climate considerations into policies, strategies, and project financing for sustainable development.
• Domination by Developed Countries: Currently, MDBs are dominated by developed Countries (WB by USA, IMF by EU and ADB by Japan); they impose conditionality in loans; there is a lack of Transparency and Accountability.

India’s Role

• India plays a key role in shaping MDB reforms to address global challenges.
• India is a significant borrower and beneficiary of MDBs, receiving support in various sectors.
• India is a contributor and shareholder in these institutions, supporting their operations.
• India actively participates in their governance and decision-making processes.

Conclusion

• Making MDBs more relevant for addressing 21st-century challenges would contribute towards enhancing human welfare and global stability and development. 
• Reforming MDBs requires extensive consultations and deliberations among various stakeholders to ensure that it is inclusive, participatory and future proof.
• India has a key role and responsibility in reforming MDBs to make them more relevant and effective for the development of the Global South.

Read more about G20 and SCO, click here.

Practice Questions for Prelims

Consider the following statements regarding Multilateral Development Banks (MDBs)

1. IMF falls under the purview of MDBs.
2. One of the objectives of MDBs is to stabilize the global financial system during the time of crisis.

Which of the above given statements is/are correct?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Ans. c)

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