India Leads Call for Reforms in Global Development Banks, Collaborates with UN and BRICS

As the Global South confronts the outdated structures of major multilateral development banks (MDBs), India has taken a proactive role in advocating for their reform, urging a shift from the post-World War II power dynamics that shaped these institutions.

India has adopted a comprehensive strategy to drive change, including establishing a fund with the United Nations (UN) to support developing countries and collaborating with the BRICS (Brazil, Russia, India, China, South Africa) on initiatives such as the New Development Bank.

The reform agenda gained traction during the recent Spring meetings of the World Bank and International Monetary Fund (IMF), where India’s leadership in the G20 was commended by UN Secretary-General Antonio Guterres.

During India’s presidency of the G20 Summit last year, Prime Minister Narendra Modi emphasized the need to expand the mandate of MDBs to address global challenges like climate change and debt issues.

In response, the G20 leaders jointly called on MDBs to evolve their vision, operational approaches, and financial capacities for greater impact. N.K. Singh, Chairman of India’s 15th Finance Commission, highlighted Guterres’ commitment to sustaining the momentum of MDB reforms initiated during India’s G20 presidency.

India’s engagement extends beyond MDBs; it actively contributes capital and expertise to the New Development Bank of the BRICS, which funds development projects and promotes financial stability among member countries.

Furthermore, India’s innovative approach to development assistance through the India-UN Development Partnership Fund (IUNDPF) allows recipient countries to prioritize projects aligned with their needs and sustainable development goals. UN Deputy Secretary-General Amina Mohammed praised the IUNDPF for making a positive impact on vulnerable communities.

Through these initiatives, India is spearheading efforts to reshape global development financing, emphasizing inclusivity, sustainability, and responsive governance within MDBs and collaborative platforms like the UN and BRICS.