Eurasian Development Bank’s Post

The topic of multilateral development banks is on the rise during the ongoing proceedings of the G20 Brasil presidency. Our Vice-Chair and Eurasian Development Bank’s Chief Economist Evgeny Vinokurov is involved in developing the #G20 MDB Road map which should bring commutative investments from our institutions on a new level, while also writing a research paper on MDBs together with our colleagues from FONPLATA. The more such initiatives, round tables and road maps - the sooner we get to change things - together, as we should. #sustainabledevelopment #MDB

Are International Financial Institutions Doing Enough? There is an on-going policy discussion under the aegis of #G20. The idea is that multilateral development banks (#MDBs) should be 'Bigger, Better, and More Effective'. Is that true? Well, the Eurasian Development Bank has just launched a new analytical project – the Non-Sovereign Financing Database (NSF), covering projects since 2008 until today. The first calculations based on the data demonstrate that, at least in Eurasia, this is indeed true. While sovereign financing remained more or less flat in real terms, non-sovereign operations in the region actually decreased by 21% adjusted for inflation (nominally, there was an increase of 12%). What are the other takeaways? ·      IFIs have shifted their focus to Central Asia: the share of Central Asian countries increased from 17% in 2008 to 72% in 2023.  ·      Green financing has become no.1 priority: the share of green projects skyrocketed to 44% in 2023 compared to 4% in 2008.  ·      Financing in local currencies has been going up but very slowly: the share of projects financed with the use of local currencies grew from 30% in 2008 to 38% over 16 years.   #CentralAsia  #Investments #Finance #Development IFC - International Finance Corporation Asian Development Bank (ADB) Asian Infrastructure Investment Bank (AIIB) Islamic Development Bank (IsDB) New Development Bank (NDB) Black Sea Trade & Development Bank (BSTDB)

I had the privilege of representing the Eurasian Development Bank in at the 4th Meeting of the #G20 Working Group on International Financial Architecture and Multilateral Development Banks (IFAWG/IFAMDB). This working group focuses on the task on making multilateral development banks “better, bigger, and more effective” to help finance #SDGs. The #MDB system encompasses not only the largest global players but also numerous regional and sub-regional banks. These institutions provide substantial benefits to their member states, each contributing in its own unique way within its mandate. Including these banks in the G20 discussions helps broaden the horizons of the MDB system. Hence, the contributions of regional and subregional banks should be heard along with the legacy MDBs. These smaller banks play a sizable role in financing development within their member states. Their involvement in G20 discussions helps broaden the perspectives of the MDB system. Our institutional position included proposals for increasing capital, mobilizing private sector resources, enhancing funding in national currencies, expanding MDB cooperation, and introducing innovative capitalization tools. Cooperation with major MDBs, including the The World Bank, Asian Development Bank (ADB), CAF -banco de desarrollo de América Latina y el Caribe-, Islamic Development Bank (IsDB), Inter-American Development Bank, Asian Infrastructure Investment Bank (AIIB), African Development Bank Group, and New Development Bank (NDB), is precious as we share insights and work toward a more effective global financial architecture. #G20 #DevelopmentFinance #MultilateralDevelopmentBanks #SustainableDevelopment #EDB #InnovationInFinance

An important G20 priority is to make multilateral development banks 'Bigger, Better, and More Effective'. The Eurasian Development Bank's NSF Database confirms the validity of this objective. On December 6, I presented the NSF Database and its takeaways to the representatives of international organizations and MDBs at the international conference “Promoting Sustainable Development in Central Asia” in Almaty, Kazakhstan. #investment #g20 #development #finance IFC - International Finance Corporation The World Bank International Monetary Fund EBRD Asian Development Bank (ADB) Asian Infrastructure Investment Bank (AIIB) New Development Bank (NDB) Islamic Development Bank (IsDB)

Today is the International Day of #Multilateralism, a concept we need to continue to push for & advocate despite the challenging global backdrop that includes a multitude of geopolitical challenges that are holding back the much needed development. The concept can only be operationalized through international cooperation & effective partnerships between global sustainable #development objectives and national visions. A few days ago at The World Bank & International Monetary Fund, we launched a 𝗚𝗹𝗼𝗯𝗮𝗹 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝘃𝗲 𝗖𝗼-𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺, aiming to achieve greater efficiency, scale and impact through project co-financing. This was launched in partnership with many of #Egypt's key development partners: African Development Bank Group, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), CEB - Council of Europe Development Bank, EBRD, European Investment Bank (EIB), Inter-American Development Bank, Islamic Development Bank (IsDB), New Development Bank (NDB) &The World Bank. To view the portal: https://lnkd.in/daxR2zkn This platform was developed for MDBs and other co-financiers to support multilateral and bilateral cooperation, scaling up finance & reducing the challenges emerging & developing countries, in line with The World Bank evolution.

Tackling the unprecedented development challenges we face nowadays requires determination and cooperation. As such, the recent announcement that #MultilateralDevelopmentBanks are strengthening their collaboration to work more effectively and scale-up their impact couldn’t have come at a better time. Multilateral Development Banks have historically been crucial in supporting economic growth and social development initiatives in developing regions. In recent years, they have worked individually and collectively to accelerate progress toward the #SDGs and to better support their clients in addressing regional and global challenges. As stated in a Viewpoint Note endorsed by a group of ten MDBs, joint work areas for 2024 and beyond include scaling-up MDB financing capacity, boosting joint action on climate, strengthening country-level collaboration and co-financing, catalyzing private sector mobilization and enhancing development effectiveness and impact. Multilateral Development Banks endorsing the Viewpoint Note include the African Development Bank Group (AfDB); the Asian Development Bank (ADB); the Asian Infrastructure Investment Bank (AIIB); the CEB - Council of Europe Development Bank; the EBRD; the European Investment Bank (EIB); the Inter-American Development Bank (IDB); the Islamic Development Bank (IsDB); the New Development Bank (NDB) and The World Bank Group (WBG). The Inter-American Development Bank, which holds the rotating chair of the MDB Heads Group—an informal forum for dialogue among the leaders of major MDBs—has published an article on this issue:  https://lnkd.in/dmtYagQA Read the Viewpoint Note endorsed by the Heads of the MDBs:  https://lnkd.in/eemKduYz

⌛ The window of opportunity to secure an inclusive and sustainable future is narrowing. It’s time to act! 🤝 That’s why multilateral development banks are stepping up together, improving our work as a system. That’s how we'll achieve greater impact, at greater scale, to better address major global challenges. 💪 Answering the call of the G20, we have been making progress on our commitments to become better, bigger and more effective. And we just announced new commitments in 5 key areas – to the benefit of #LatinAmerica, the #Caribbean and the world. 🌐 Want to know more? Visit our website: https://bit.ly/49ZmzvB #ClimateChange #DevelopmentFinance #InternationalDevelopment #Mobilization #G20 #DevelopmentEffectiveness #MDBs #MDBReform African Development Bank Group - Asian Development Bank (ADB) - Asian Infrastructure Investment Bank (AIIB) - CEB - Council of Europe Development Bank - Social Development Bank (SDB) - EBRD - European Investment Bank (EIB) - Islamic Development Bank (IsDB) - New Development Bank (NDB) - The World Bank

Callable capital is highlighted as a critical component of #MDBs' total capital, but its recognition by rating agencies is essential for enabling these institutions to leverage it effectively. #Rating #agencies should carefully evaluate the implications of callable capital commitments on #MDBs' #creditworthiness and #lending capacity, taking into account the likelihood of these commitments being called upon. #SAR #RatingAgencies #Africa #MDB #EmergingMarkets #Sovereign #Africa #Investments #G20 #CreditRating https://lnkd.in/dVmGQSum

Beyond the Billions: Rethinking the G20’s Approach to Multilateral Development Banks (MDBs) In my latest commentary with ORF America, I discuss why the recent G20 "Roadmap" for MDB reform is significant yet ultimately falls short of what’s needed. As our global financial architecture undergoes critical shifts, the need for transformative change in the delivery of multilateral finance has never been greater. The MDB framework may no longer be the only player in a multi-layered financing landscape, with rapidly growing bilateral mechanisms reshaping global finance. China has already set a precedent, and India has reaffirmed its preference for settling trade in national currencies, underscoring that “Special Rupee Vostro Accounts are now an effective mechanism.” Meanwhile, Africa and other developing economies advocate for a "New Collective Bargaining Agreement" at COP 29 to unlock essential resources for climate resilience, adaptation, and sustainable development. These movements—and the frustrations with the current governance of the MDB system—call for implementing the G20’s 17-page roadmap, with its 12 recommendations, to better align with the new realities and demands of the Global South. A forward-looking approach requires reimagining MDBs’ role and purpose to address these priorities honestly. Read my short comment here: https://lnkd.in/eqRPRAtr to see why the G20’s plan is the start of a conversation that must deepen to transform multilateral finance for a changing world. #GlobalFinance #MDBs #ClimateFinance #EmergingMarkets #IndiaRussia #GlobalSouth #DevelopmentFinance #SustainableDevelopment #TradeFinance #G20 #China

The Evolution of Multilateral Development Banks: A New Era of Collaboration and Innovation Multilateral Development Banks (MDBs) have long served as cornerstones of international development finance, harnessing collective resources to address complex global challenges. The recent strides toward deeper collaboration and innovation within the MDB ecosystem herald a transformative shift in how these institutions approach development finance, reflecting a growing recognition of the interconnected nature of global development issues and the imperative for coordinated action. #IMF #AIIB #DevelopmentBanks #climate  #bank