MDBs urged to strengthen response to global challenges

MANILA, Philippines — The Philippines has urged multilateral development banks (MDBs) to strengthen their response to global challenges in the aftermath of the pandemic, geopolitical tensions, and the elevated inflation.

Finance Secretary Benjamin Diokno said during the opening day of the 8th Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) in Egypt that MDBs “are expected to scale up and reform their response to global challenges.”

With the theme Sustainable Growth in a Challenging World, the annual meeting serves as an avenue for AIIB members to dialogue on the bank’s strategic direction and initiatives, as well as the role of MDBs in promoting sustainable development.

Diokno spoke during the Governors’ Business Roundtable to exchange views on the role of MDBs in scaling up finance and supporting a just and effective transition towards low-carbon development.

The Secretary of the Department of Finance cited the spillover effects of the COVID pandemic, geopolitical tensions, extreme weather conditions, humanitarian disasters, debt vulnerabilities and elevated inflation as speed bumps to countries’ development goals.

Diokno said AIIB has been responsive to its members’ needs, particularly through the crisis recovery facility, where it is able to rapidly assist members in delivering pandemic-related needs including establishing emergency healthcare, maintaining critical infrastructure expenditure, and financing post-pandemic recovery measures.

“We recognize the AIIB’s efforts in closely coordinating with its peer MDBs in developing co-financing operations, especially through policy-based loans,” Diokno said.

Beijing-based AIIB is a multilateral development bank established in 2016 is focusing on developing Asia by enabling its clients to build Infrastructure for Tomorrow, such as green infrastructure with sustainability, innovation and connectivity at its core.