MDBs strengthen joint action in addressing global issues

The heads of major multilateral development banks (MDBs) vowed to strengthen their cooperation in addressing various global issues, including conflicts, disasters, and tight fiscal conditions.

The MDBs issued a statement after a meeting at the Asian Development Bank (ADB) headquarters in Mandaluyong City, Philippines on Saturday, October 17, wherein they also assured support to developing countries amid global uncertainties.

"The Heads welcomed the significant progress achieved this year in working as a system to mobilize private capital, advance joint actions on key development priorities, and enhance system efficiency for greater impact at scale, in line with each institution’s mandate, strategy, and operational model," the joint statement read.

During the meeting, the MDBs discussed the mobilizing of private capital and expanding MDB financial capacity.

"The Heads appreciated the progress towards launching a joint MDB Debt Fund, developed, following an extensive market sounding with leading global asset managers to assess investor appetite for a diversified portfolio of MDB-originated assets," the statement read.

The Heads "also encouraged continued work to scale up local-currency financing and foreign-exchange-risk solutions to reduce currency mismatches and deepen domestic financial markets in emerging and developing economies."

Moreover, the MDBs also called for further collaboration on dealing with critical minerals.

"The adoption of the MDB Collaboration Framework for critical minerals intends to support diversified, resilient and responsible value chains, increase local value addition, accelerate private sector investments and create jobs," it said.

"The Framework strengthens cooperation in key areas, including across policy and governance, enabling infrastructure and regional value chains, project preparation and financing, and market development."

When it comes to climate, the MDB heads strongly endorsed Türkiye and Australia's leadership in driving green industry growth for job creation and development, advancing cleaner and more resilient energy systems through resource diversification, faster electrification, and higher efficiency, and boosting climate adaptation across businesses, infrastructure, and communities.

Furthermore, they highlighted progress within the Joint MDB Long-Term Strategy Programme, which has launched more than 30 activities at various levels to help nations convert their climate and development goals into actionable investments.

In terms of artificial intelligence, the MDB heads welcomed joint initiatives launched this year, including the AI Use Case Repository, the AI Academy for Governments, the AI Risk Self-Assessment Tool, and a forthcoming Practitioner Note.

The MDBs also welcomed the launch of the International Financial Institution Platform for Nuclear Energy for Development, "which provides a mechanism for participating institutions to coordinate financing and technical assistance in accordance with respective mandates and policies."

The MDBs also discussed aligning their agenda with the UK’s 2027 G20 Presidency and outlined future cooperation priorities for 2027, when the European Investment Bank assumes the group's presidency. —RF, GMA News