The United Nations Secretary-General has highlighted the reform agenda for Multilateral Development Banks (MDBs) at the 2024 Summit of the Future, hosted by the UN General Assembly.
About Multilateral Development Banks (MDBs):
- MDBs are international financial institutions designed to promote economic development, especially in low-income and middle-income countries (LICs and MICs).
- They offer financial and technical assistance across various sectors, including transportation, energy, and urban infrastructure.
- Examples of MDBs: Prominent institutions include the World Bank Group, Asian Development Bank, African Development Bank, and Inter-American Development Bank, among others.
Historical Background of MDBs
- Bretton Woods Conference (1944): This event marked the establishment of key institutions like the International Monetary Fund (IMF) and World Bank Group (WBG).
- The primary focus of the WBG was post-war reconstruction and development.
- Expansion of WBG: The WBG now encompasses various entities, including the International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC), Multilateral Investment Guarantee Agency (MIGA), and International Centre for Settlement of Investment Disputes (ICSID).
- Current Landscape: MDBs have grown in number and scope, with approximately 15-16 prominent MDBs and Regional Development Banks playing significant roles in today’s global development efforts.
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