MDB leaders call for cooperation amid global risks

Amid rising global uncertainty, including developments in the Middle East, heads of multilateral development banks (MDBs) have stressed the need for stronger cooperation to maintain global stability, protect development gains, and respond to growing economic pressures across member countries.

The MDB heads met on Friday in Washington on the sidelines of the World Bank Group–International Monetary Fund Spring Meetings. They noted that current global challenges are already affecting economies through higher energy prices, disrupted supply chains, and tighter financial conditions.

They reaffirmed their readiness to provide timely and effective support to help countries manage risks, maintain macroeconomic stability, and protect vulnerable populations.

Against this backdrop, the MDB leaders pledged to deepen coordination and scale up impact, with a strong focus on private sector development, job creation, infrastructure, and long-term sustainable growth, in line with their respective mandates and strategies, according to a press release from the Asian Development Bank.

Asian Development Bank President and current Chair of the MDB Heads Group Masato Kanda said the institutions are working more closely than ever in a complex global environment.

“By combining our financial strength, knowledge, and partnerships, we are helping countries manage immediate pressures while building resilience for the future,” he said.

The leaders emphasised the importance of mobilising private finance and expanding overall financing capacity. They discussed approaches such as originate-to-distribute models to create bankable projects and attract private investment at scale.

They agreed to establish a working group to advance this agenda. They also highlighted the need to improve transparency of credit risks in emerging markets through the Global Emerging Markets (GEMs) consortium, expand local currency financing, strengthen domestic financial markets, and ensure disciplined use of blended finance.

The MDB heads further committed to a more coordinated approach to measuring the impact of their operations in creating jobs, improving livelihoods, and reducing poverty and vulnerability.

They also agreed to strengthen cooperation in key areas such as critical minerals, supporting diversified and resilient supply chains for energy security, digital transformation, and job creation.

In addition, the MDBs launched “Water Forward”, a global initiative aimed at developing scalable water systems to support jobs, food security, prosperity, and resilience. Future collaboration will also extend to emerging areas such as artificial intelligence.

The leaders reaffirmed their commitment to improving system-wide efficiency, with greater focus on quality and value for money. They agreed on a common framework for procurement to ensure sustainability in MDB-financed projects, while allowing each institution to adapt it to its operational needs.

They also noted progress in mutual reliance frameworks to support smoother joint financing of development projects.

The MDB Heads Group includes major institutions such as the African Development Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank, and the World Bank Group.

The International Monetary Fund also participates in the discussions.