Policymakers increasingly tout multilateral development banks as being uniquely positioned to address today’s pressing global challenges, particularly debt crises in the developing world. But their lending mostly benefits middle-income countries rather than the lower-income countries that need it most.
WASHINGTON, DC – Multilateral development banks (MDBs) have become the darling of policymakers nowadays. In a recent speech, US Treasury Secretary Janet Yellen called on the World Bank and other international lenders to support developing countries struggling with the effects of rising inflation and aggressive interest-rate hikes. And a recent independent report commissioned by the G20 concludes that these institutions are uniquely positioned to help governments achieve the United Nations’ Sustainable Development Goals.
WASHINGTON, DC – Multilateral development banks (MDBs) have become the darling of policymakers nowadays. In a recent speech, US Treasury Secretary Janet Yellen called on the World Bank and other international lenders to support developing countries struggling with the effects of rising inflation and aggressive interest-rate hikes. And a recent independent report commissioned by the G20 concludes that these institutions are uniquely positioned to help governments achieve the United Nations’ Sustainable Development Goals.