Economists NK Singh and Larry Summers emphasise that we need new financial resources and approaches to tackle new cross-border challenges like climate change, pandemics, fragility, and migration. The two experts co-chair an independent G20 group focused on developing a roadmap to enhance the framework for Multilateral Development Banks (MDBs).
While gathering opinions from experts and stakeholders, NK Singh and Larry Summers have highlighted the importance of restructuring MDBs. These banks have a unique role in assisting countries in tackling issues such as climate change and food security.
However, it is widely acknowledged that these banks require modernisation to address the challenges of the 21st century effectively. The primary objective is to modernise MDBs and make them more adaptable to the challenges of the 21st century while effectively addressing the development needs of countries. Reforms within the World Bank have long been under consideration, including addressing climate finance requirements.
Additionally, changes in countries’ voting rights in the International Monetary Fund (IMF) to reflect their evolving economic strength have been on the agenda. India and China have called for restructuring these institutions, which were established after World War II.
Although a final decision regarding restructuring debt-stricken countries’ loans has not been reached, discussions have successfully established common ground through ongoing deliberations, which will last until Saturday.
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