India takes leading role in calling for multilateral bank reforms
India has also adopted another two-pronged approach to promote change: Setting up a fund with the UN for developing countries and working with the BRICS on the New Development Bank.
A high-powered G20 expert group on “Strengthening Multilateral Development Banks (MDBs) has been constituted under the aegis of India’s G20 Presidency.
The objectives of the expert group are:
–A roadmap for an updated MDB ecosystem for the 21st century, with milestones and timelines, touching upon all aspects of MDB evolution, including but not limited to vision, incentive structure, operational approaches and financial capacity so that MDBs are better equipped to finance a wide range of SDG and transboundary challenges such as climate change and health;
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–An evaluation of various estimates regarding the scale of funding required by and from MDBs for addressing their and member countries’ increased financing needs for SDG and transboundary challenges, taking into account the additional capacity that can be derived from the CAF recommendations alongside other important sources such as the private sector and public sector funds (AND); and
–Mechanisms for coordination among MDBs for them to address and finance global development and other challenges more effectively.
The expert group comprises Lawrence Summers, President Emeritus, Harvard University, and N K Singh: President, Institute of Economic Growth and Former Chairperson, 15th Finance Commission of India (Co-convenors) and Tharman Shanmugarathnam, Senior Minister, Government of Singapore; Maria Ramos, Chairperson of AngloGold Ashanti and former Director-General of the National Treasury of South Africa; Arminio Fraga: Founder, Co-CIO Hedge Funds and Private Equity, Gávea Investimentos and former Governor, Central Bank of Brazil; Nicholas Stern, IG Patel Professor of Economics and Government, London School of Economics; Justin Yifu Lin, Professor and Honorary Dean of National School of Development at Peking University and former Senior Vice President & Chief Economist of the World Bank; Rachel Kyte, Dean of the Fletcher School of International Affairs at Tufts University and former Vice-President of World Bank; and Vera Songwe, Non-resident senior fellow in the Africa Growth Initiative at the Brookings Institution and former Executive Secretary, Economic Commission for Africa.
The expert group will submit its report to the Indian Presidency of the G20 before 30 June.
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