World Bank mulls 27 of 30 ideas on MDBs by G20 Independent Group

Sub: IR

Sec: Int org

Context:

Union Finance Minister Nirmala Sitharaman praised the World Bank for considering 27 of the 30 recommendations from the G20 Independent Expert Group aimed at strengthening multilateral development banks (MDBs).

Independent Expert Group (IEG):

Appointed under the 2023 Indian G20 Presidency.
Its primary focus is on strengthening multilateral development banks (MDBs).
The group recommended a triple agenda of reforms for multilateral development banks (MDBs) aimed at tripling sustainable lending levels by 2030.
- Eliminate extreme poverty.
- Boost shared prosperity.
- Contribute to global public goods.

What are Multilateral Development Banks:

Multilateral Development Banks (MDBs) are international financial institutions created by multiple countries to provide financial and technical assistance for development projects in developing countries.
MDBs include the World Bank Group, the Asian Development Bank, the African Development Bank, European Bank for Reconstruction and Development (EBRD) etc.

About World Bank:

World Bank Group is a specialised agency of the United Nations, established in 1944.
It is headquartered in Washington DC.
It consists of five development institutions:
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Guarantee Agency (MIGA)
- International Centre for the Settlement of Investment Disputes (ICSID)
India is not a member of the ICSID because it claims that the ICSID’s functioning and structure are biased towards the developed countries.
To join the World Bank Group, a country must first become a member of the IMF.
It provides loans, guarantees, advisory services, and risk management products to middle-income and creditworthy low-income countries.