Development and Sustainable Finance

According to the United Nations Conference on Trade and Development, Emerging Markets and Developing Economies (EMDEs) face a USD 4 trillion gap in investment to achieve the Sustainable Development Goals. Increasing Multilateral Development Banks (MDBs) lending capacity to these development financing needs in EMDEs is thus urgent. Increased capital contributions are one of the most effective mechanisms to increase MDB lending capacity. But there are also others, from continued improvements in the MDBs Capital Adequacy Frameworks, to the establishment of a greater variety of innovative financing sources and instruments. The overarching goal should be to ensure that EMDEs have the required resources to conduct transformative, market-creating policy that transforms their productive matrix, reduces poverty and inequality, and enables the green transition. Globally, MDBs must have the resources not only to achieve the Sustainable Development Goals, but to address transboundary challenges and global public goods.