Nirmala Sitharaman meets G20 Independent Expert Group on strengthening of MDBs
Person in News
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According to the Union Ministry of Finance, Finance Minister Nirmala Sitharaman met the G20 Independent Expert Group (IEG) on strengthening Multilateral Development Banks (MDBs) on 22 September 2023.
The G20 Independent Expert Group was set up during the Indian Presidency of the G20. It was asked to suggest measures to strengthen the multilateral development banks (MDB). The IEG submitted its Volume 1 report during the G20 summit meeting in New Delhi in September 2023.
Former American treasury secretary Lawrence Summers and ex-chairman of the 15th Finance Commission N K Singh are the co-convenor of the IEG.
The IEG will submit its Volume II report during the Finance Ministers and Central Bank Governors meeting at Marrakech, Morocco in October 2023. The Marrakech meeting will be the fourth and final meeting of the Finance Ministers and Central Bank under the G20 Presidency of India.
Brazil assumed the Presidency from India at the closing ceremony of the 2023 G 20 summit meeting in New Delhi . Brazil will be the G20 president for a year.
Focus on MDBS
The MBDs play a crucial role in providing cheaper loans and assistance to the member countries for development purposes. In order to strengthen these MBDs the IEG was set up.
According to the Volume 1 report of the IEG, MDBs need to provide an additional USD 260 billion annually to fund sustainable infrastructure and help nations achieve Social Development Goals (SDG) targets.
Multilateral Development Bank
Multilateral Development Banks are those international financial organisations having more than two member countries as members. The World Bank and its subsidiaries, like the International Finance Corporation, International Bank for Reconstruction and Development (IBRD), are some of the major global MDBs.
Almost every continent has an MDB to support and finance development activities in the member countries.
These MBDs are called regional MBDs.Someof the important regional MDBs are the Asian Development Bank, the African Development Bank etc.
Some of the Major Multilateral Development Banks
|
Name of the MDBs |
Established on |
Headquarters |
Member countries |
President (Nationality) |
|
World Bank |
1944 |
Washington D.C |
189 |
Ajay Banga (United States) |
|
African Development Bank |
1964 |
Abidjan, Ivory Coast |
81 |
Akinwumi A. Adesina (Nigeria) |
|
Asian Development Bank |
1966 |
Mandaluyong, Philippines |
68 |
Masatsugu Asakawa (Japan) |
|
European Bank for Reconstruction and Development |
1991 |
London, United Kingdom |
71 |
Odile Renaud-Basso (France) |
|
Asian Infrastructure Investment Bank (AIIB) |
2016 |
Beijing, China |
106 |
Jin Liqun (China) |
|
New Development Bank (earlier known as BRICS Bank) |
2015 |
Shanghai, China |
9 |
Dilma Rousseff(Brazil) |
