The heads of the International Monetary Fund and the World Bank said Thursday that the multilateral lenders will collaborate more closely to tackle significant challenges, particularly climate change, debt vulnerabilities and digital transition.
The pledge by IMF Managing Director Kristalina Georgieva and new World Bank President Ajay Banga came ahead of this weekend's summit of the Group of 20 major economies in India, where the enhancement of multilateral development banks is expected to top the agenda.
"The world confronts significant economic challenges, the existential threat of climate change as well as a digital transition, all in the context of more frequent shocks, high debt levels, limited policy space in many countries and rising geopolitical tensions," the two leaders said in a statement.
"The Bretton Woods institutions have a critical role to play to help member countries address the challenges and leverage the opportunities, working closely together and with partners," they said, referring to their Washington-based organizations.
Senior U.S. officials have said that amid China's unsustainable lending practices in developing countries, President Joe Biden plans to focus on reforms to long-standing multilateral institutions such as the IMF and the World Bank when he meets his G-20 counterparts in New Delhi.
"We know that these institutions are some of the most effective tools for mobilizing transparent and high-quality investment in developing countries," White House national security spokesman John Kirby said Wednesday during a press briefing on the summit.
"And that's why the United States has championed the major effort that is currently underway to evolve these institutions so that they're up for the challenges of tomorrow," he said.
