Officials and industry experts emphasized the increasing importance of multilateral financial cooperation to tackle pressing global challenges, such as climate change, and drive economic growth amidst growing uncertainties. During the second G20 Finance Ministers and Central Bank Governors Meeting in April, ministers and governors stressed the need to reinforce the financing capacity of multilateral development banks (MDBs) and stabilize international capital flows, particularly to help fragile economies recover.
Pan Gongsheng, Governor of China’s People’s Bank, highlighted the role of an open and inclusive multilateral trading system in ensuring stable capital flows to emerging and developing economies. A communique from the fourth G20 Finance Ministers meeting in October reaffirmed optimism for a global economic soft landing, despite existing challenges, and called for sustainable, inclusive growth, fiscal sustainability, and efforts to mitigate negative spillovers. The communique also emphasized that MDBs must become more effective in addressing the development needs of low- and middle-income countries.
Xuan Changneng, Deputy Governor of the People’s Bank of China, urged collaborative efforts to push for International Monetary Fund (IMF) quota reforms to promote true multilateralism and prevent global economic fragmentation.
An example of growing multilateral cooperation is the New Development Bank (NDB), founded by Brazil, Russia, India, China, and South Africa. Dilma Rousseff, President of the NDB, stressed that the bank’s focus is on climate change mitigation and the transition to renewable energy sources, particularly from 2022 to 2026, when 40% of the bank’s $30 billion financing will be dedicated to green goals. The NDB’s membership has expanded to include Bangladesh, the UAE, Uruguay, and Egypt, further enhancing cooperation among emerging economies.
At the 29th Asian EXIM Banks Forum Annual Meeting in November, Harsha Bangari, Managing Director of the Export-Import Bank of India, emphasized that infrastructure development, industrial transformation, and sustainable growth require large-scale financing, which necessitates cooperation among financial institutions and MDBs. Safdar Parvez, Country Director for China at the Asian Development Bank (ADB), added that in the face of rising protectionism and trade fragmentation, international cooperation is essential for addressing climate change and fostering resilient growth.
Similarly, the Asian Infrastructure Investment Bank (AIIB) and ADB are focusing on cross-border infrastructure and regional cooperation, with the AIIB aiming to direct 25-30% of its financing to these areas by 2030. Gregory Liu of the AIIB emphasized that as a younger institution, the bank will learn from the successful experiences of other MDBs to further facilitate trade and development.