Market finance for developing countries has collapsed. MDBs are needed for mobilizing resources for development, through lending, guarantees, co-financing, and policy advice. We have also seen a rise in lending to low- and middle-income countries, aided by past debt relief.
The World Bank is in the most visible position as it works on its evolution roadmap. But change is needed across the MDB system to enable these institutions to play a more effective and a much bigger role in helping the world meet these challenges. Together they hold about $500 billion in shareholder equity, which can be leveraged many times over in lending.