US stand on development banks may boost support for reforms – Times of India

GANDHINAGAR: A day before discussions on reform of multilateral development banks (MDBs), US treasury secretary Janet Yellen’s statement is seen to be crucial in getting several G20 countries, including members of G7, on board for the long-debated changes.
Already, civil society organisations have come out in support of the suggestions made by the panel and Yellen’s comments seemed to have provided much-needed backing to the recommendations. “These (comments) are quite consistent with the group’s own thinking. There are undoubtedly issues on which we will seek greater convergence of views, like on capital increase, and the extent to which markets can accept the leveraging of the current capital base,” N K Singh , co-chair of the panel along with former US treasury secretary Larry Summers, told TOI. While the report has not been made public, as reported by TOI , the panel has proposed a $100-billon equity support for MDBs and estimated the funding requirement over a decade at $3 trillion. Around $1 trillion is to come from external sources, including MDBs.
Singh, who also met IMF managing director Kristalina Georgieva, discussed the issue of domestic resource mobilisation of around $2 trillion. “There can be no getting away from the fact that the burden of transition on capital has to come through member countries themselves making a significantcontribution depending on their own capacity,” he said.
Separately, four civil society organisations — Global Citizen, The ONE Campaign, E3G and Pandemic Action Network — issued a statement backing the reforms. “A step change is needed. At the G20 FMs’ meeting, we ask you to commit to expanding and improving the international financial architecture to unlock international financing to help meet sustainable development goals and tackle the climate emergency ,” it said.