Shaping the financing of global public goods
Multilateral development banks for global public goods (MDBs for GPGs)
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Commissioning PartyGerman Federal Ministry for Economic Cooperation and Development (BMZ)
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Country -
Overall term2024 to 2027
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Products and expertiseGovernance and democracy
Context
Global public goods (GPGs) – such as a clean environment, a stable climate, peace and security, and public health – are underfunded. In order to achieve cross-border and global objectives and results in development policy, states must therefore work together.
Multilateral development banks (MDBs) are key motivators in this context. The role of MDBs is to strengthen the protection of GPGs and promote sustainable economic growth, sustainable debt and cross-border cooperation.
To support GPGs, MDBs must define a new viable business model and collaborate effectively with other MDBs and implementing organisations of both the United Nations and bilateral development cooperation. It is also important to dovetail bilateral and multilateral activities. Germany is therefore working with other shareholders on a fundamental reform of the MDBs to ensure that GPG financing takes cross-border results into account.
Objective
MDBs have viable business models for financing GPGs, and thereby for achieving the United Nations Sustainable Development Goals (SDGs). German bilateral development cooperation actors work with MDBs and multilateral organisations, using complementary approaches to reach these goals. At the same time, multilateral debt policy supports countries in making the investments that are needed to ensure their sustainable development.
Approach
The project contributes to strengthening the global structural policy required to implement the United Nations 2030 Agenda, the Paris Agreement and other international agreements. To this end, it supports the process to reform the MDBs’ business models. This will make the MDB system more effective and efficient.
In addition, the project develops and pilots instruments that allow German bilateral development cooperation to dovetail with MDBs, which promotes effective cooperation.
It also supports efforts to reform the global debt architecture to enable countries to make the investments that are needed.
Last update: July 2024