“We also call for a regular review of the progress of implementation on a rolling basis including through engaging with MDBs, subject experts and shareholders. We commend the MDBs for their progress in implementing the CAF recommendations, especially with respect to adapting definitions of risk appetite and financial innovation,” the G20 New Delhi Leaders’ Declaration said.
Committing to pursue reforms for better, bigger and more effective MDBs to address global challenges to maximise developmental impact, G20 leaders urged these institutions to undertake comprehensive efforts to evolve their vision, incentive structures, operational approaches and financial capacities so that they are better equipped to maximize their impact in addressing a wide range of global challenges.
“Scaling up investment to meet development needs and global challenges requires a big push on investments and, in this context, we ask the IMF and the World Bank, in coordination with other relevant international institutions, to support efforts at enhancing domestic resource mobilisation in EMDEs,” the declaration said.
“We call on the MDBs to also leverage private capital through innovative financing models and new partnerships to maximise their development impact. Recognizing other multilateral efforts, we take note of the Summit for a New Global Financing Pact,” it said. It appreciated the ongoing collaboration among MDBs on the timely release of Global Emerging Markets (GEMs) data and the launch of GEMs 2.0 as a stand-alone entity by early 2024. Going forward, the document said MDBs should collaborate in areas such as hybrid capital, callable capital, and guarantees.
“We take note that initial CAF measures, including those under implementation and consideration, could potentially yield additional lending headroom of approximately USD 200 billion over the next decade, as estimated in the G20 CAF Roadmap.
“While these are encouraging first steps, we will need to give an additional push for continued and further impetus on CAF implementation,” it said.
The G20 New Delhi Leaders’ Declaration emphasised on a more inclusive and reinvigorated multilateralism and reform aimed at implementing the 2030 agenda is essential as the need for revitalized multilateralism to adequately address contemporary global challenges of the 21st Century has been voiced at multiple fora.
The reform will make global governance more representative, effective, transparent and accountable.
The 21st century also requires an international development finance system that is fit for purpose, including for the scale of need and depth of the shocks facing developing countries, in particular the poorest and most vulnerable.
“We are working to deliver better, bigger and more effective MDBs by enhancing operating models, improving responsiveness and accessibility, and substantially increasing financing capacity to maximise development impact. Stronger MDBs will be important to our efforts to mobilize financing from all sources for a quantum jump from billions to trillions of dollars for development,” it said.
G20 underscored the need for enhancing representation and voice of developing countries in decision-making in global international economic and financial institutions in order to deliver more effective, credible, accountable and legitimate institutions.
The international finance system must deliver significantly more financing to help developing countries and EMEs to fight poverty, tackle global challenges and maximise development impact.
“We remain committed to pursuing ambitious efforts to evolve and strengthen MDBs to address the global challenges of the 21st century with a continued focus on addressing the development needs of low- and middle-income countries,” it said.
G20 reiterated its commitment to a strong, quota-based, and adequately resourced IMF at the centre of the global financial safety net.
“We remain committed to revisiting the adequacy of quotas and will continue the process of IMF governance reform under the 16th General Review of Quotas (GRQ), including a new quota formula as a guide, and ensure the primary role of quotas in IMF resources, to be concluded by December 15, 2023,” it said.
In this context, G 20 supported maintaining the IMF’s current resource envelope. It welcomed the landmark achievement of the global ambition of USD 100 billion of voluntary contributions (in SDRs or equivalent) and USD 2.6 billion of grants in pledges for countries most in need and called for the swift delivery of pending pledges.
It also welcomed the progress achieved under the Resilience and Sustainability Trust (RST) and Poverty Reduction and Growth Trust (PRGT).
G20 Leaders called for further voluntary subsidy and loan pledges to the PRGT and will continue to monitor the effectiveness of RST-supported programmes.
The G20 reiterated its continued support to Africa, including through the G20 Compact with Africa.
