Washington: In a period of heightened global uncertainty, including the evolving situation in the Middle East, Heads of Multilateral Development Banks (MDBs) have underscored the importance of close cooperation to support stability, safeguard development progress, and respond to mounting pressures in their member economies.
According to Bangladesh Sangbad Sangstha, the MDB Heads emphasized that they are working more closely than ever to support their members and clients through a complex and evolving global environment. Masato Kanda, President of the Asian Development Bank (ADB) and current Chair of the MDB Heads Group, highlighted the collaboration efforts, stating that by combining financial strength, knowledge, and partnerships, they are helping countries manage immediate pressures while building resilience for the future.
The MDB Heads, meeting on the sidelines of the World Bank Group-International Monetary Fund Spring Meetings, noted that the impacts of current global developments are already being felt through higher energy costs, supply chain disruptions, and tighter financial conditions. They emphasized their readiness to deploy timely and effective support to help countries and clients manage risks, maintain macroeconomic stability, and protect vulnerable populations.
Against this backdrop, MDB Heads reaffirmed their shared commitment to deepen collaboration and deliver impact at scale, with a strong focus on private sector development, job creation, infrastructure, and long-term sustainable growth in line with their respective mandates, strategies, and operational focuses, said an ADB press release. They also stressed the importance of mobilizing private finance and expanding financing capacity through approaches like originate-to-distribute, creating bankable opportunities and attracting private capital at scale.
The Heads agreed to establish a working group to advance these initiatives and recognized the importance of increasing transparency of credit risks in emerging markets through the Global Emerging Markets (GEMs) consortium. They also discussed scaling up local currency financing through the development of domestic financial markets to help mitigate exchange rate risks and the disciplined use of blended finance.
Further, the Heads agreed on closer collaboration on measuring the impact of MDB operations on job creation, social cohesion, and poverty reduction. They are strengthening efforts on critical minerals to support diversified, resilient, and responsible supply chains, underpinning energy security, digital transformation, job creation, and value addition in their countries of operation.
The MDBs also launched Water Forward – a global initiative to advance investable, scalable water systems that drive jobs, prosperity, food security, and resilience. The Heads expressed their commitment to joint efforts in other priority areas, including artificial intelligence.
The MDB Heads reaffirmed their commitment to working more effectively as a system with a focus on quality and value. They agreed on a common framework on Value for Money in procurement to ensure the quality and sustainability of MDB-financed projects, which each bank will refine to its own operational context. They also highlighted progress in the use of mutual reliance frameworks for seamless joint financing of MDB projects.
The Heads of MDBs Group includes the African Development Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank, and the World Bank Group. The International Monetary Fund also participates in the Heads’ discussions.