Heads of multilateral development banks stress cooperation to support global stability amid uncertainty

In a period of heightened global uncertainty, including the evolving situation in the Middle East, heads of multilateral development banks (MDBs) have underscored the importance of close cooperation to support stability, safeguarding development progress and responding to mounting pressures in their member economies.

The MDB heads, at a meeting held on Friday (17 April) in Washington on the sidelines of the World Bank Group-International Monetary Fund Spring Meetings, noted that the impacts of current global developments are already being felt through higher energy costs, supply chain disruptions and tighter financial conditions.

The heads emphasised MDBs' readiness to deploy timely and effective support to help countries and clients manage risks, maintain macroeconomic stability and protect vulnerable populations.

Against this backdrop, the MDB heads reaffirmed their shared commitment to deepen collaboration and deliver impact at scale, with a strong focus on private sector development, job creation, infrastructure and long-term sustainable growth in line with their respective mandates, strategies and operational focuses, according to a press release from the Asian Development Bank.

Masato Kanda, president of the ADB and current chair of the Heads of MDB Group, said MDBs are working more closely than ever to support our members and clients through a complex and evolving global environment.

"By combining our financial strength, knowledge and partnerships, we are helping countries manage immediate pressures while building resilience for the future."

The heads emphasised the importance of strengthening efforts to mobilise private finance and expand financing capacity, including through originate-to-distribute/share approaches that enable MDBs to create bankable opportunities and crowd in private capital at scale.

They agreed to establish a working group to take this work forward. They recognised the importance of increasing transparency of credit risks in emerging markets through the Global Emerging Markets Consortium, scaling up local currency financing, including through the development of domestic financial markets, to help mitigate exchange rate risks and disciplined use of blended finance.

The heads further agreed to closer collaboration on a common approach to measuring the impact of MDB operations on creating more and better jobs to lift households out of poverty, improve social cohesion and reduce vulnerability.

MDBs are strengthening collaboration on critical minerals – working together to support diversified, resilient and responsible supply chains to underpin energy security, digital transformation, job creation and value addition in their countries of operation. MDBs also launched Water Forward – a global initiative to advance investable, scalable water systems that drive jobs, prosperity, food security and resilience.

The MDB heads said they will continue joint efforts on other priority areas, including artificial intelligence.

They reaffirmed their commitment to working more effectively as a system, including through a sharper focus on quality and value. They agreed on a common framework for Value for Money in procurement to ensure the quality and sustainability of MDB-financed projects, which each bank will refine to its own operational context. 

They also highlighted progress in the use of mutual reliance frameworks to ensure seamless joint financing of MDB projects.

The Heads of MDB Group include the African Development Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, Islamic Development Bank, New Development Bank and the World Bank Group. The International Monetary Fund also participates in the Heads discussions.