The World Bank says it is seeking to significantly increase its lending capacity to address climate change and other global crises.
An “evolution roadmap” document made available by the bank, showed that it also plans to negotiate with shareholders ahead of meetings on proposals that include a capital increase and new lending tools.
The roadmap document, which was given to shareholder nations, is the first step in a negotiating process to change the mission and financial resources of the bank and move it away from the country- and project-specific lending model it has employed since its founding after World War Two.
According to the document, the World Bank administration hopes to have concrete suggestions to alter the organization’s goal, operational structure, and financial capacity ready for consideration by the combined World Bank and International Monetary Fund Development Committee in October.
According to a World Bank spokesman, the document aimed to give specifics on the evolution’s scope, strategy, and timing, with frequent updates for shareholders and decisions later in the year.
The reform of multilateral development banks has been a topic of fierce debate in recent months after developing countries faced mounting pressure from inflation, energy and food shortages fueled by Russia’s war in Ukraine, slowing growth, mounting debt burdens and growing vulnerability to climate shocks.
Story was adapted from Reuters.
