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World Bank seeks more funds to expand mission
April 06, 2023
A consultation paper released for shareholders has said that the World Bank Group (WBG) executive directors have recommended an enhanced formulation for the agency’s mission: To end extreme poverty and boost shared prosperity by fostering sustainable, resilient and inclusive development. The paper has said that while continuing to support to achieve sustainable development goals, some global challenges are now more prominent – climate change, pandemics & health security and fragility & conflict.
The formulation is seen as a concern by the poorer nations as they fear that resources may be diverted towards green finance and will come at the cost of fighting poverty. Climate, conflict and pandemics are estimated to need annual public and private spending of $2.4 trillion. While new indicators are proposed to capture the “enhanced mission”, fulfilling financing needs for this is seen to be critical.
Some of the money could come from balance sheet optimisation such as revising the equity-to-loan ratio for International Bank for Reconstruction and Development (IBRD) and hybrid capital, the paper suggested, adding that up to $50 billion in additional capacity could be created over 10 years.
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