Hopes of getting more Nigerians out of the poverty debacle brightened at the weekend, as the World Bank announced deepening its collaboration with nine Multilateral Development Banks (MDBs) to fast-track solutions that can change the lives of people in developing countries.
To this end, the global bank said that measures were already being implemented or under consideration by the MDBs that could yield $300-400 billion of additional lending capacity over the next decade.
The global bank noted that stronger engagement with MDBs was a key element of the Bank’s new effort in realizing its ambitious new vision of a world free of poverty on a livable planet.
To this end, the African Development Bank, the Asian Development Bank, the Asian Infrastructure Investment Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, the Islamic Development Bank, and the New Development Bank all joined the World Bank in sealing the deal at the ongoing IMF-World Bank annual meetings holding in Marrakech, Morocco.
“Working together for a common cause, we can bring more experience, expertise, knowledge, and, especially, more funding to the massive challenges facing the world today,” World Bank President Ajay Banga said.
“Together, we are greater than the sum of our parts—and our impact can be multiplied exponentially”, he added.
He said the potential for impact from deeper partnership is enormous, helping improve lives as countries confront a perfect storm of intertwined crises—from climate shocks and conflicts to pandemics and surging debt.
“The heads of the MDBs agreed to boost collaboration in five key areas: Scaling up financing capacity through financial innovations including portfolio guarantees and hybrid capital while stepping up their joint approach to credit rating agencies.
“Boosting collective efforts on climate as MDBs implement their joint principles for assessment of Paris Agreement Alignment, and better tracking and reporting of climate outcomes beyond joint climate finance reporting.
“Enhancing country-level collaboration to ensure that joint efforts deliver greater impact.
Strengthening co-financing by harmonizing and standardizing our processes and seeking co-financing opportunities for greater speed and reach.
“Catalyzing private sector engagement including through joint innovative mechanisms that strengthen the mobilization of private capital”, Banga added.
The new agreement comes as the World Bank makes a renewed push around partnership. The Bank is strengthening efforts to partner with the private sector, civil society, other multilateral institutions, and philanthropy. These partnerships crowd in funding and expertise, enhance the exchange of knowledge and data, share lessons and best practices, and multiply networks of support and advocacy to drive success around shared priorities.
Credit: Daily Sun