The G20 Independent Expert Group on Strengthening Multilateral Development Banks is learnt to have recommended that the multilateral development banks (MDBs) adopt a triple mandate to address eliminating extreme poverty, inclusive growth and the financing of global public goods along with a suggestion to constitute a 'Global Challenges Funding' mechanism for 'Global Public Goods'. The group's co-convenor N K Singh, in his remarks at the G20 Finance Ministers’ and Central Bank Governors’ (FMCBG) Meeting at Gandhinagar on Tuesday, supported estimates based on earlier discussions that an additional spending of $3 trillion per year is needed by MDBs by 2030, out of which two-thirds could come from domestic resource mobilisation. The gap of $1 trillion would require additional external financing, half of which could come from private financing and rest from official financing, he is learnt to have said. Singh is learnt to have stressed on the importance of the critical role of the MDBs on scaling up of official finance. Stressing that it is “not about bigger MDBs, but better and, therefore, different MDBs”, he said that there is a “need for changes in the processes, procedures, and systems of work”. The group has leaned in support of a general capital increase, with the increase in official financing expected to be split between concessional and non-concessional funds. “MDBs should be the preferred institutions; expanding to $90 billion per year for concessional finance and $300 billion in non-concessional lending. On the concessional side, we recommend that donors re-orient aid programs towards multilateral channels to enhance coherence and leverage,” Singh said at the meeting.
