Eurasian Development Bank
Eurasian Development Bank
09/13/2024 | Press release | Archived content
How to make the MDB system ‘better, bigger and more effective’? EDB contributes to the respective G20 Roadmap
Almaty, 13 September 2024. Evgeny Vinokurov, Vice Chairman of the Management Board and Chief Economist at the Eurasian Development Bank (EDB), participated in the final expert discussions on the G20 MDB Roadmap towards better, bigger and more effective Multilateral Development Banks (MDBs) during the 4th G20 International Financial Architecture Working Group (IFA WG/IFA MDB) meeting, held on 5 and 6 September 2024 in Seoul, Korea.
The Roadmap includes recommendations for MDBs and G20 member countries, focusing on how to make the MDB system "better, bigger and more effective" to best serve the interests of the participating states.
MDBs currently invest approximately US $200 billion annually in developing countries in need of financing. However, to close the infrastructure and Sustainable Development Goal (SDG) financing gap, estimated at $4 trillion yearly, global development financing should be much higher.
The EDB position, as presented by the Chief Economist, includes proposals on increasing capital, mobilizing private capital, boosting the share of financing in local currencies, expanding MDBs collaboration, and introducing innovative hybrid capital instruments - such as channelling IMF SDRs to MDBs. According to Evgeny Vinokurov, "the MDB system includes major global players as well as a substantial number of regional and sub-regional banks. These banks bring considerable benefits to their member states, each in their own way and in line with their own mandates. Collectively, they contribute a sizable share of development finance in their countries. Including these banks in G20 discussions helps expanding the boundaries of the MDB system."
During the year, the EDB participated in the Working Groups alongside representatives from the G20 and major MDBs, including the World Bank, the Asian Development Bank, the Development Bank of Latin America, the Islamic Development Bank, the Inter-American Development Bank, the Asian Infrastructure Investment Bank, the African Development Bank, and the New Development Bank.
Additional Information:
The Eurasian Development Bank (EDB) is a multilateral development bank investing in Eurasia. For more than 18 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing and mechanical engineering. The Bank adheres to the UN Sustainable Development Goals and ESG principles in its operations.
The G20 International Financial Architecture Working Group (IFA WG) is working to build a more stable and sustainable international financial architecture for long-term and sustained growth in line with the 2030 Agenda for Sustainable Development. One of IFA WG's top priorities for 2024 is to make MDBs better, bigger and more effective.
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