Two years ago, Secretary of the Treasury Janet L. Yellen called for the evolution of multilateral development banks (MDBs) at the Annual Meetings of the International Monetary Fund and World Bank. This year, she reaffirmed her commitment to this initiative alongside President Banga, Lord Malloch-Brown, and Minister Musokotwane.

Yellen emphasized the need for MDBs to adapt in response to global challenges such as climate change, pandemics, and conflict. She noted that while MDBs have historically built trusted relationships with developing countries and provided various forms of support, they must now focus more on global public goods.

Her call for change was widely supported by diverse stakeholders including governments, non-governmental organizations, research institutions, and the private sector. The Evolution agenda targeted four key areas: mission, incentives, operational models, and financial capacity.

The World Bank has adopted a new mission "To create a world free of poverty on a livable planet," while regional development banks have also adjusted their missions. New incentives include updated corporate scorecards focusing on outcomes and mobilizing private capital. Additionally, $200 billion in new lending capacity is expected over the next decade from innovative measures across MDBs.

Examples of progress include 19 countries adopting a new option to repurpose World Bank funds for emergency responses. St. Vincent and the Grenadines delayed repayments to support disaster response efforts. Improved coordination among MDBs aims to enhance responses to global health crises.

Efforts are also underway to mobilize private capital. A fund focused on SDGs attracted over $1 billion in financing with help from new data sources like the Global Emerging Markets Risk Database.

Yellen highlighted ambitious goals set by President Banga such as working with the African Development Bank to bring electricity to 300 million people in Sub-Saharan Africa by 2030.

She stressed that shareholders must actively participate in these efforts by supporting capital increases for various development banks and delivering robust policy packages for upcoming replenishments.

Yellen concluded by acknowledging that while MDBs have shaped development outcomes globally since Bretton Woods 80 years ago; it is crucial they continue evolving alongside changing world dynamics.

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