India's G20 Presidency Strengthens Multilateral Development Banks
During the G20 Summit hosted in New Delhi, India”s Finance Minister, Nirmala Sitharaman, delivered significant announcements regarding the strengthening of multilateral development banks (MDBs). The consensus reached among G20 nations involved augmenting the financing capacity of the World Bank and establishing an independent panel to oversee the capital adequacy framework of MDBs. Additionally, the G20 collectively endorsed a comprehensive roadmap for implementing the recommendations stemming from an independent review of MDBs” capital adequacy frameworks.
In her address following the adoption of the New Delhi Declaration, Finance Minister Sitharaman underscored India”s leadership in advancing the cause of making MDBs “bigger, better, and more effective.” She emphasised that India”s G20 presidency had successfully crafted solutions that resonated with each member, fostering a shared path forward.
Sitharaman elaborated on key achievements within the finance track, highlighting four major accomplishments. These encompassed an agreement to enhance the World Bank”s financing capacity and the establishment of an independent panel to oversee the capital adequacy framework (CAF) for MDBs. Notably, this move is expected to provide an additional lending capacity of $200 billion over the next decade post-CAF implementation. The G20 also expressed its endorsement of the G20 Roadmap for Implementing the Recommendations of the G20 Independent Review of MDBs Capital Adequacy Frameworks (CAFs), with a call for ambitious implementation. The emphasis was placed on conducting this within the MDBs” governance frameworks, while ensuring the long-term financial sustainability, robust credit ratings, and preferred creditor status of these institutions.
Amitabh Kant, G20 Sherpa, highlighted the remarkable achievement of passing the 83-paragraph declaration without any footnotes, underscoring India”s adeptness at achieving consensus. He acknowledged that this accomplishment demonstrated India”s ability to bring all members to the same table. Kant further noted the strenuous efforts undertaken to secure the adoption of the New Delhi Declaration, with rigorous negotiations on geopolitical issues that lasted for days. These issues were ultimately resolved due to the leadership of Prime Minister Modi.
External Affairs Minister S. Jaishankar also addressed the conference, emphasising the G20″s role in preparing both India and the world for global challenges. He praised the exceptional organisation and widespread participation in G20 events held across 60 cities throughout India.
Finance Minister Sitharaman touched upon the topic of cryptocurrency, highlighting India”s presidency”s contribution to forging a global consensus on its regulation. She stressed the integration of financial inclusion and productivity gains through digital public infrastructure into the G20 agenda.
The leaders also discussed the Russia-Ukraine war and its impact, particularly on developing and least-developed nations. Jaishankar pointed out that during India”s presidency, the African Union joined the G20, aligning with India”s commitment to addressing pressing concerns of the Global South. He emphasised the extensive consultation process involving 125 nations at the start of India”s presidency to express the voice of the Global South.
