Shaping the financing of global public goods

Context

In order to achieve cross-border and global objectives and results in development policy, states must work together. Multilateral development banks (MDBs) are key motivators in this context. They should make it their goal to enhance the protection of global public goods (GPGs) – such as a clean environment, a stable climate, peace and health – while also promoting long-term economic growth and fostering cross-border cooperation.

Providing the GPGs requires global cooperation and efficient intergovernmental institutions. To enable this, the MDBs need to define a new, future-oriented business model. Germany is therefore working with other shareholders on a fundamental reform of the MDBs to ensure that cross-border results are a fixed component of GPG financing.

Objective

MDBs have viable business models for financing GPGs and the United Nations Sustainable Development Goals (SDGs). German bilateral development policy is increasingly cooperating with multilateral organisations to implement the global SDGs.

Approach

The project is helping to shape the strategies of international financial institutions and improve their institutional management systems. To this end, it is also commissioning a study to examine how MDBs can finance the GPGs. In this way, the project is supporting the global structural policy required to implement the United Nations 2030 Agenda, the Paris Climate Agreement and the MDB reform. This ensures that GPGs are made available and protected.

Last update: May 2023