G20 Reforms Enable MDBs to Address Global Challenges

Washington, Oct 24 (PTI) Reforms in Multilateral Development Banks (MDBs) have been set in motion by G20 and the pathway has been successfully built to enable MDBs to effectively contribute to addressing global challenges and development financing requirements, Finance Minister Nirmala Sitharaman said.

India looks forward to engaging with the South African Presidency in taking forward the work on this agenda, Sitharaman said during her intervention while participating in the Fourth G20 Finance Ministers and Central Bank Governors (FMCBG) here on Thursday.

The MDB reform agenda has seen continued G20 engagement during recent presidencies and the G20 constitutes the major shareholder of the MDB ecosystem, the minister said, adding the political momentum from this group is motivating MDBs to pursue major reforms.

Under India's G20 presidency last year, Sitharaman said MDBs were encouraged to evolve their vision, incentive structures, operational approaches, and financing capacities.

She said it was impressive how the Brazilian presidency built on the mandate from the Leaders' Summit in New Delhi and the outcomes of previous G20 presidencies, thereby ensuring continuity and consistency.

Sitharaman concluded by saying the pathway had been successfully built to enable MDBs to effectively contribute to addressing global challenges as well as development financing requirements, and India looked forward to engaging with the South African presidency in taking forward the work on this agenda.

Brazil will pass over the G20 presidency to South Africa later this year.

Later participating in a session, the minister said the G20 had grown and evolved over the past 25 years, and its convening power was its biggest achievement.

She also emphasised the importance of G20 using its political weight and pushing for comprehensive reforms to achieve Agenda 2030.