New Delhi: A report on reforming the multilateral development banks (MDBs), by an independent expert group, has not yet received the endorsement of the G20 finance ministers. It appears the report, authored by N.K. Singh and Lawrence Summers, may not get a go-ahead during India’s G-20 presidency.The third G20 finance ministers and Central Bank Governors (FMCBG) held in Gandhinagar on July 17-18 did not accept the recommendations of the expert group. Instead, the members said that they “may choose to discuss” the recommendations to “enhance their effectiveness”.According to Business Standard, a senior G20 delegate from India, said, “We are disappointed that the recommendations of the MDB reforms report were not endorsed in the chair’s summary released in Gandhinagar. It was only taken note of.”To address global challenges of the 21st century, G20 members recognised the importance of strengthening MDBs and to let its ecosystem evolve.A press statement by India’s finance ministry merely acknowledged the prepared report without commenting on why it was not endorsed, as was expected. “Members appreciated the efforts of the G20 Independent Expert Group on Strengthening MDBs constituted by the Indian Presidency earlier this year. The Expert Group has prepared Volume 1 of the Report, and Volume 2 is expected in October 2023. Noting Volume 1’s recommendations, members shared that the MDBs may choose to discuss these recommendations to enhance their effectiveness,” it added.The report co-authored by the chairman of 15th Finance Commission, N.K. Singh, stresses on the greater engagement with private sector for MDBs. It notes that private financing worth $740 billion per year will be required to reach overall goals for additional climate and sustainable development goals (SDGs)-related finance, an increase of $500 billion over the 2019 level of sovereign borrowing and private participation in infrastructure, the Indian Express reported.“Today, MDBs only mobilise 0.6 dollars in private capital for each dollar they lend on their own account. They should aim to at least double this target,” the report argues.It also calls for better coordination between MDBs, noting that while some MDBs have been leaner and faster (AIIB), others are experimenting with raising new forms of capital (AfDB and IDB), engaging with the private sector (EBRD and IFC) or better utilising their balance sheets in other ways (IBRD and ADB).The report also goes onto to add that a ‘triple mandate’ is required to address poverty, inclusive growth and the financing of global public goods. These, the reports says, can be made possible by tripling the level of financing commitments and establishing a third funding mechanism. It further calls for the setting up of a ‘Global Challenges Funding’ mechanism for ‘Global Public Goods’, for which the modalities will be detailed in the second volume of the report to be released later.According to Hindustan Times, several factors have come together to make MDB reform a “pressing agenda”. At the first level, there is an effort to expand the World Bank’s mandate from eliminating extreme poverty and boosting shared prosperity to addressing transboundary challenges, including the climate crisis.Welcoming the report, US treasury secretary, Janet Yellen, had said, “The World Bank is updating its mission statement and refreshing its operating model. And we are working with the World Bank and the regional development banks to implement measures that will more efficiently leverage the resources they have. Our reforms to the World Bank’s balance sheet will responsibly unlock as much as $50 billion in additional lending capacity over the next decade.”Yellen had further noted that MDB system can unlock $200 billion over the next decade just from the measures already being implemented or under deliberation, as a part of what is widely known as “balance sheet optimisation”.Writing for the Indian Express, N.K. Singh explained the importance of MDBs for the contemporary world. “Over the years, notwithstanding far-reaching geopolitical changes, economic crises and uncertainties, MDBs have remained relevant as credible institutions to support the development of both MICs [Middle Income Countries] and LICs [Low Income Countries]. Yet, it is widely believed that these institutions are no longer suited in terms of the resources, cultural ethos and methods to address the emerging challenges. These relate to global public goods, climate change and pandemics.It is widely believed that MDBs are in a quagmire, trapped in their procedures, approach and methods of work and reticent to structural changes. Given their technical knowledge, experience and credibility in the financial sphere, they need to rediscover their role and methods. The two traditional goals shared by all multilateral institutions have been the elimination of poverty and fostering shared prosperity. The new challenge is to broaden the mandate and vision to address the challenges of transboundary issues and the opportunities connected with climate change.”