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today i will share the report [multilateral development finance 2024 (english)] produced by: -oecd

the multilateral system is an important and growing player in development cooperation. it includes more than 200 organizations, including those within the united nations development system (unds), as well as multilateral development banks and vertical funds. today, the system provides nearly two-thirds of official development finance. this fourth edition of the report since 2018 presents the state of multilateral development finance, highlights key trends and their implications, and offers recommendations for sustaining its development impact in increasingly challenging times.

the risk of financing: ignoring development goals

a growing range of development challenges, from poverty reduction to climate change to the impact of russian aggression in ukraine, is intensifying pressure on the multilateral development system to move faster. current reform efforts have focused largely on strengthening the system’s financing capacity, placing huge expectations on the mdbs, pushing them to do more with the same or fewer resources. the institutions are being urged to rely on financial innovation, extending a decade-long trend of “financialization” that has seen them increasingly use their balance sheets to offset stagnant donor contributions. as a result, outflows from the world bank group and other mdbs have increased significantly from 2012 to 2020, by 72% ($35.3 billion) for the world bank group and 155% ($61.8 billion) for the other mdbs.

however, relying on financial innovation will not be enough to meet the expanded multilateral mandate, including addressing climate change, while maintaining support for traditional and critical areas such as poverty reduction. while mdbs have taken steps to increase their lending capacity, analysis in this report finds that these measures would at best increase lending capacity by 30% by 2030 – well below the call by an independent g20 panel of experts to triple mdb lending capacity by 2030.