Reforming Development Banks: Progress Limited, New Tool Shows
A New Tool to Track Reforms
A tool launched on Monday aims to track reforms by the World Bank and the five biggest multilateral development banks (MDBs). According to the tool, while broad changes are “firmly in play,” progress in implementing them has been limited so far.
Slow Implementation of Reforms
The Center for Global Development (CGD), a nonpartisan organization, developed the platform to assess progress on reforms. However, the CGD researchers found that progress in implementing the changes has been “quite limited.”
The researchers acknowledge some notable progress, such as raising lending limits and launching innovative finance programs. However, they note that many reforms are still in the aspiration phase rather than the implementation phase.
The CGD unveiled the tracker during the annual meetings of the International Monetary Fund and the World Bank in Marrakech, Morocco. They plan to update the tracker biannually or when major changes are announced.
Integration of Global Challenges
The CGD researchers commend the inclusion of the phrase “livable planet” in the World Bank’s mission statement. However, they argue that the banks are still grappling with how to integrate global challenges into their operations and how to finance them effectively.
Push for Major Changes
The United States, as the largest shareholder of the World Bank, along with other countries, is pushing for significant changes to address issues like climate change and pandemic preparedness. Critics argue that MDBs could unlock more capital without jeopardizing their AAA credit rating status.
Furthermore, the reform discussion has predominantly been led by voices from the Northern Hemisphere and major emerging markets like China, India, and Brazil. It is crucial to include more borrowing countries of MDBs and address their goals and concerns.
Overall, the tool launched by the CGD sheds light on the progress of reforms by the World Bank and other major development banks. While some positive strides have been made, there is still a long way to go in implementing the necessary changes to tackle global challenges effectively.
