The fourth and final meeting of the G20 Finance Ministers and Central Bank Governors (FMCBGS), under India’s G20 Chairmanship, unanimously adopted the ‘Communiqué’ of the G20 Finance Ministers and Central Bank Governors.
The G20 FMCBGS meeting was held in Marrakech, Morocco on 12 and 13 October 2023, on the sidelines of the International Monetary Fund-World Bank Annual Meeting.
The FMCBGS Communiqué draws heavily from the consensus reached at the Leaders' Summit, taking guidance from the G20 New Delhi Leaders' Declaration (NDLD).
Strengthening Multilateral Development Banks (MDBs):
- The FMCBGS communique also welcomed the report of the G20 Independent Expert Group on Strengthening Multilateral Development Banks (MDBs).
- The FMCBGS also addressed the need for transformational changes in the vision, operating models and financing capabilities of MDBs.
- The three building blocks that FMCBGS requested consideration include:
- Raising private capital,
- Capital Adequacy Framework Recommendations and
- Strengthening their financial capacity, including capital increase implementation, and calling on MDBs to work together as a system.
- Moving forward, he also called for continuing to work on the report's recommendations to build a better, larger and more effective MDB.
- An 11-member expert group has been constituted under the guidance of India's G20 Presidency. The mission of the Expert Group is to highlight ways to enhance MDBs.
- The conveners of the expert group are 15th Finance Commission Chairman NK Singh and former US Treasury Secretary Lawrence Summers.
FMCBGS adopts G20 roadmap on crypto assets:
- FMCBGS has also adopted the G20 Roadmap on Crypto Assets.
- Its detailed and action-oriented roadmap will help coordinate global policy as well as develop mitigation strategies and regulations on crypto assets, taking into account the specific impacts on emerging markets and developing economies (EMDEs).
Multilateral Development Bank (MDB):
- MDBs are financial institutions that provide loans, grants and technical assistance to developing countries for their economic and social development.
- MDBs include the World Bank Group, Asian Development Bank, African Development Bank, Inter-American Development Bank, etc.
- MDBs have played an important role in supporting the development of low and middle income countries by addressing issues like poverty, infrastructure development, human capital formation etc.
- The G20 is an international forum comprising 19 countries and the European Union and the African Union.
- G20 members represent more than 80% of the world's economic output and two-thirds of its population (these figures are before the African Union joined the G20 grouping).
- The G20 meets annually to discuss matters related to global economic growth, international trade and financial regulation, among other key issues.
- The G20 summit under the chairmanship of India was held in New Delhi from 8 to 10 September 2023.
- The presidency of organizing the next G20 meeting in the year 2024 has been handed over to Brazil.
- Established: 1944
- Members: 189 countries are its members.
- Chairman: Ajay Banga (from June 2, 2023)
- It is one of the specialized agencies of the United Nations.
- The World Bank was established together with the IMF as the International Bank for Reconstruction and Development (IBRD). After that IBRD became the World Bank.
- The World Bank Group is a global partnership of five institutions working to create sustainable solutions that reduce poverty and build shared prosperity in developing countries.
Major reports published by the World Bank:
- Human Capital Index
- World Development Report
- Ease of Doing Business (Discontinued Publication)
The World Bank's five development institutions:
- International Bank for Reconstruction and Development (IBRD)
- International Development Association (IDA)
- International Finance Corporation (IFC)
- Multilateral Guarantee Agency (MIGA)
- International Center for Settlement of Investment Disputes (ICSID)
- India is a member of all except ICSID of the World Bank.