Yabibal M. Walle’s Post

Important insights that need to be front and centre in the discussions on how to raise the amount of finance for the Global South without losing the focus on "development".

Rob Floyd, Director, Innovation and Digital Policy at ACET attended and participated in the OECD event "Channeling Special Drawing Rights through MDBs: How to Make It (Finally) Work," where discussions focused on leveraging Special Drawing Rights (SDRs) to support low-income and vulnerable middle-income countries.   At ACET, we believe facilitating SDR channeling aligns with our mandate of economic transformation, enabling greater leverage for sustainable development financing. By collaborating with stakeholders and advocating for practical solutions, we can turn commitments into tangible benefits for the communities that need them most.   One of the outcomes of these discussions is a policy brief, Channeling Special Drawing Rights to Multilateral Development Banks: Overcoming Remaining Legal and Political Obstacles, which examines the challenges and opportunities in reallocating SDRs. The brief highlights the current positions of key players, the institutional and political obstacles they face, and outlines actionable steps to overcome these challenges. It emphasizes the need for potential donor countries to channel their SDRs through MDBs, clarifies the role of the European Central Bank, and encourages advocacy by African governments and civil society organizations to support this initiative.   Click here to read 👉 - https://lnkd.in/d45HaSxA

A multilateral bank for the Indo-Pacific? "To make a serious difference to the problems at hand, Australia and its partners will need to think bigger. This means investing in substantial new institutional capabilities especially for knowledge sharing and – most importantly – finding ways to strengthen multilateral ties in this region. They also need solutions that help to close financing gaps and build investment pipelines by attracting new projects and co-investors." "The Indo-Pacific Economic Framework (IPEF) could be the ideal forum for this modern multilateral bank." https://lnkd.in/gNETiHUJ #indopacific #asiapacific #IPEF #finance #worldtrade #imf #development

I am pleased to announce the publication of our Policy Brief, entitled "Channelling special drawing rights to multilateral development banks: overcoming remaining legal and political obstacles". Following the G-20 commitments to donate 100 billion USD in Special Drawing Rights (#SDRs) to developing countries in 2021, there has been a growing focus on how to effectively utilise SDRs for the financing of sustainable development. In recognition of the significance of this initiative, the #PactfortheFuture has recently urged countries that are able to do so to donate half of their 2021 SDR allocations to developing countries. The most efficient way to channel SDRs is through multilateral development banks (#MDBs), as they can leverage it three to six times. The African Development Bank Group and the Inter-American Development Bank have proposed a hybrid capital solution that allows SDRs to be channelled to MDBs while preserving their reserve asset status. This Policy Brief discusses the challenges this mechanism has faced and suggests solutions to overcome them. ➡️ https://lnkd.in/emSjenmB  It has been great working with my fellow co-authors, Kathrin Berensmann, Paulo Esteves Elise Dufief, PhD Rob Floyd and Yu Ye. #sustainabledevelopment #multilateraldevelopmentbanks #HSC2024 German Institute of Development and Sustainability (IDOS) IDDRI BRICS Policy Center African Center for Economic Transformation (ACET)

𝐅𝐃𝐈 𝐢𝐧 𝐂𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞: 𝐄𝐦𝐩𝐨𝐰𝐞𝐫𝐢𝐧𝐠 𝐄𝐌𝐃𝐄𝐬 𝐭𝐨 𝐀𝐭𝐭𝐫𝐚𝐜𝐭 𝐒𝐚𝐟𝐞 𝐚𝐧𝐝 𝐁𝐞𝐧𝐞𝐟𝐢𝐜𝐢𝐚𝐥 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 🌍💼 As emerging market and developing economies (#EMDEs) face daunting challenges in rebuilding, strengthening resilience, and tackling the climate crisis, they urgently need large volumes of foreign direct investment (#FDI). However, not all FDI is created equal - the quality and source of FDI can have significant implications. New #OECD data reveals that a sizable share of FDI in critical infrastructure in EMDEs is backed by foreign state-owned entities. This raises concerns about economic security and strategic independence, as such investments can create dependencies and compromise the integrity of crucial networks. The #G7 has recognized the need to assist EMDEs in developing better policies to attract more, better, and safe FDI. This includes helping them identify and manage the security implications of foreign state-backed investment, particularly in critical infrastructure. By supporting EMDEs in this endeavor, the international community can help unlock the transformative potential of FDI, while ensuring it aligns with the long-term interests of host countries and the global economy. Investing in policies that foster more, better, and safe FDI is a key step towards sustainable development and resilience in the face of global challenges.🌱🌐

Insightful policy brief by Development Reimagined highlighting considerations on the opportunity to strengthen Africa's voice in the multilateral system following the African Union's inclusion as a full, permanent member of the Group of 20, to form the G21. They highlight 6 priorities to support the AU's engagement: 1.    Reimagining the IMF Quota System to Provide Fair Representation for The African Continent. 2.    Facilitate SDR Reallocation to the African Development Bank  3.    Support a Reformed Debt Sustainability Analysis – including revisions to the restrictive 60% debt-to-GDP thresholds. 4.    Revise the G21 Common Framework based on African Positions.    5.    Alignment with the AUs Agenda 2063 and Infrastructure Development. 6.    Support capital increase at MDBs, as outlined by the Capital Adequacy Framework report. Will be fascinating to see what Africa's inclusion and representation looks like for the priorities and decisions of the G20 going forward, and how African countries can agree work together towards a harmonised position on priority issues for the continent. https://lnkd.in/emgNqe9G Full brief here: https://lnkd.in/e-UTbMur

To overcome the longstanding international coordination problems that have undermined reform efforts, we need a revamped G20

The multilateral development system, which encompasses more than 200 organisations like the World Bank, IMF, and UN, is crucial for fostering collective action on global challenges.     ↗ 2022 marked the 7th consecutive year that OECD Development Assistance Committee (DAC) members increased their contributions to multilateral organisations.    Their aid was comprised of USD 50.6 billion in core contributions—funds that can be used flexibly, while earmarked contributions—funds designated for specific projects or purposes—reached USD 48 billion.     DAC members can enhance the multilateral development system's efficiency and effectiveness by pursuing reforms and prioritising funding quality, coherence, co-ordination, transparency, and accountability.    As the Summit of the Future kicks off this month, read our 🆕 analysis of multilateral development finance and system reforms ➡ https://brnw.ch/mdfr24     #OurCommonFuture #FfD4

🚨 Are ongoing reforms and “financialisation” of multilateral development banks (#MDBs) undermining their development mission? 🚨 📊 The next edition of our OECD #MultilateralDevelopmentFinanceReport (#MDFR to be released early September) assesses the current and future impact of MDBs’ reform, including the consequences of stretching their balance sheets to increase leverage. It shows that: 👉 1. While the ongoing reforms could grow MDBs funding capacities by 30%, this is far from enough to reach the objective of tripling their capacities for climate action (see @Stern, Vera Songwe, @Bhattacharya report) – this brings us only to 1/10th of the way. 👉 2. Financial innovation and the “financialisation” of MDBs, and programs such as #IDA, has significantly reduced the concessionality of funding, excluding access to some of the countries most in need. 👉 3. It has also diverted resources away from programs dedicated to #povertyreduction and social sectors, in particular #education. 💡 In sum, stretching the balance sheet might bring satisfactory results from a treasury perspective, but it risks undermining the MDBs’ development mission. It therefore needs to be accompanied by capital increase and new concessional funding. This also stresses the importance of ongoing replenishment campaigns. 🗣 If you are interested in the report, stay tuned for more findings and the launch early September. We also explore the reform of the UN development system, including issues of earmarking, proliferation and fragmentation, and global financial architecture reform. If you have recent or ongoing work on multilateral development finance, whether your research points in the same or opposite direction, please do not hesitate to comment and reach out: we will organise with partners around the world a series of events to disseminate the work and share perspectives. A good opportunity to promote your own work and join the research and policy community interested in multilateral development finance. Bertrand Badré Anne-Laure Kiechel Masood Ahmed Karen Mathiasen Dr Debapriya Bhattacharya Susanna Gable Rémy Rioux Thomas Melonio Homi Kharas Annalisa Prizzon Arancha Gonzalez Laya Sébastien Treyer Damien Barchiche Elise Dufief, PhD Akihiko Nishio Anabel González Avinash Persaud Sylviane Guillaumont Matthieu Boussichas Jeffrey Sachs Guillaume Lafortune Dan Esty Pierre Jacquet OECD Development

In Day 2 of 2024 African Economic Conference #AEC2024 Joined KEVIN CHIKA URAMA, Chief Economist and Vice-President, African Development Bank Group, Raymond Gilpin, Chief Economist at UNDP Africa, Victor Murinde, Executive Director, African Economic Research Consortium (AERC), and Mavis Owusu-Gyamfi, President and CEO of African Center for Economic Transformation (ACET) to discuss the urgent reforms needed for a just and inclusive global financial system. To support African countries better respond to global shocks: ✅#MDBs must incorporate vulnerability beyond income levels in providing concessional finance, streamline loan application and disbursement, and deploy innovative & derisking instruments to crowd in private sector ✅#IMF’s #SDR and #quota formulas must be reformed so that resources can be directed to countries that really need them ✅ Implement #SDR rechannelling to MDBs and replenish their concessional windows On international tax cooperation: ✅African countries must establish negotiations strategies, build common positions, forge alliances, and strengthen capacities to achieve a successful UN Framework Convention on International #Tax Cooperation On global debt architecture: ✅Overhaul #G20 Common Framework to make it effective, transparent, and time-bound ✅Revamp IMF-World Bank #DSA framework, so it is more solvency focused ✅Diversify sources of funding to reduce cost of borrowing We are at the time with retrenchment of multilateralism, yet the shocks today are far beyond the border of one country. We must work together and advance engagement efforts, for tangible achievements on reform of the global financial architecture. United Nations Economic Commission for Africa United Nations African Union African Union - Economic Development, Trade, Tourism, Industry, Minerals (ETTIM)