In a period of heightened global uncertainty, including the evolving situation in the Middle East, the Heads of Multilateral Development Banks (MDBs) today underscored the importance of close cooperation to support stability, safeguarding development progress, and responding to mounting pressures in their member economies.
“MDBs are working more closely than ever to support our members and clients through a complex and evolving global environment,” said Masato Kanda, President of the Asian Development Bank and current Chair of the MDB Heads Group. “By combining our financial strength, knowledge, and partnerships, we are helping countries manage immediate pressures while building resilience for the future.”
MDB Heads – meeting today on the sidelines of the World Bank Group–International Monetary Fund Spring Meetings – noted that the impacts of current global developments are already being felt through higher energy costs, supply chain disruptions, and tighter financial conditions. The Heads emphasized MDBs’ readiness to deploy timely and effective support to help countries and clients manage risks, maintain macroeconomic stability, and protect vulnerable populations.
Against this backdrop, MDB Heads reaffirmed their shared commitment to deepen collaboration and deliver impact at scale, with a strong focus on private sector development, job creation, infrastructure, and long-term sustainable growth in line with their respective mandates, strategies, and operational focuses.
Fostering private sector development and job creation
The Heads emphasized the importance of strengthening efforts to mobilize private finance and expand financing capacity, including through originate-to-distribute/share approaches that enable MDBs to create bankable opportunities and crowd in private capital at scale. They agreed to establish a working group to take this work forward. They recognized the importance of increasing transparency of credit risks in emerging markets through the Global Emerging Markets (GEMs) consortium, scaling up local currency financing, including through the development of domestic financial markets to help mitigate exchange rate risks; and disciplined use of blended finance. The Heads further agreed to closer collaboration on a common approach to measuring the impact of MDB operations on creating more and better jobs to lift households out of poverty, improve social cohesion and reduce vulnerability.
Strengthening MDB collaboration in key areas for growth and resilience
MDBs are strengthening collaboration on critical minerals – working together to support diversified, resilient, and responsible supply chains to underpin energy security, digital transformation, job creation, and value addition in their countries of operation. MDBs also launched Water Forward – a global initiative to advance investable, scalable water systems that drive jobs, prosperity, food security, and resilience. MDB Heads said they will continue joint efforts on other priority areas, including artificial intelligence.
Improving the effectiveness of MDBs as a system
MDB Heads reaffirmed their commitment to working more effectively as a system, including through a sharper focus on quality and value. They agreed on a common framework on Value for Money in procurement to ensure the quality and sustainability of MDB-financed projects, which each bank will refine to its own operational context. They also highlighted progress in the use of mutual reliance frameworks to ensure seamless joint financing of MDB projects.
The Heads of MDBs Group includes the African Development Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank, and the World Bank Group. The International Monetary Fund also participates in the Heads discussions.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
