Nirmala Sitharaman Meets World Bank President, Discusses MDBs Reforms

Finance Minister Nirmala Sitharaman on Wednesday met World Bank President Ajay Banga and discussed reforms in the Multilateral Development Banks among other things.

The two discussed issues related to private capital participation in Global Public Goods, Energy security, and Multilateral Development Banks (MDBS) reforms on the sidelines of the World Bank and IMF Annual Meetings in Washington.

The Finance Minister said that she is keenly looking forward to the World Bank taking forward the IEG's recommendations on MDBs reforms from India's G20 Presidency and also requested regular monitoring of the implementation of the recommendations going forward, the finance ministry said in a post on X.

Independent Expert Group (IEG), appointed under the auspices of the 2023 Indian G20 Presidency, recommended a triple agenda of reforms to MDBs.

The three elements of this agenda are adopting a triple mandate of eliminating extreme poverty, boosting shared prosperity, and contributing to global public goods tripling sustainable lending levels by 2030; and creating a third funding mechanism that will permit flexible and innovative arrangements for purposefully engaging with investors willing to support elements of the MDB agenda.

Sitharaman also stressed the need for a broader consultation process on the advisory mechanism jointly convened by the World Bank and IMF for discussing Bretton Woods Institutions as they turn 80 years old.

The Bretton Woods Institutions are the IMF and the World Bank Group, established in 1944 at a conference in Bretton Woods, New Hampshire in the US.

Banga noted substantial progress on the IEG recommendations, which are set to be presented at the G20.

He emphasised the WBG's focus on jobs, knowledge frameworks, and bankable projects and reiterated its emphasis on collaborating with India's budget priorities, including skilling, water and sanitation, and urban development.