New Delhi: Minister of Finance Nirmala Sitharaman called on multilateral development banks (MDB) to accept a stronger and more targeted approach to supporting the global south that faces growing fiscal pressures, escalating climate risks and deepening geopolitical uncertainty.
At the opening ceremony of the 10th annual meeting of the new development bank – Formerly The Brics Development Bank – Sithaman said that MDB is uniquely located to complement national efforts by public and private capital, offering concession financing and deploying sophisticated risks.
“MDB has a significant comparative advantage in catalyzing public and private investments by offering a package of technical knowledge, concession financing and effective risks to relieve our political possibilities,” she said. MDB also plays a key role in the help of countries to manage growing uncertainty, she added.
These institutions have become critical allies for the development of economies that navigate the convergence of economic tension, environmental vulnerabilities and geopolitical shocks. By accompanying themselves to private capital and offering financial and technical knowledge, the MDBS Policy Toolkit is expanding in the global south.
Since the momentum is building global financial architecture, MDB is increasingly considered to be central to close investment gaps and support sustainable and inclusive growth in developing markets.
“Mobilization of private capital is the key to maintaining growth,” Sitharaman said. “Due to the limited fiscal space and competitive requirements for public capital expenditure, the new development bank should play a catalytic role in unlocking the capital of the private sector.”
She also called for a sharper focus on small businesses: “Special focus must be focused on adapted support for small and medium -sized enterprises, especially women led by businesses to ensure inclusive participation, economic development and gender equality.”
According to the Indian Presidency of the G20, NK Singh-Larry Summers Expert Group called for bold reforms to make MDB more agile, more efficient and aligned with the challenges of the 21st century. The panel recommended moving over traditional loans to focus on global public goods such as climate and health, and innovatively using the balance sheets to unlock private capital.
(Tagstotranslate) nirmala sitharaman
