Scaling up lending at the multilateral development banks
Multilateral Development Banks (MDBs) have a critical role to play in filling global infrastructure gaps, and achieving the objectives of Sustainable Development Goals (SDGs) and the Paris Climate Agreement. This new paper by Waqas Munir and Kevin P. Gallagher estimates the potential lending headroom available to MDBs under scenarios with and without capital increases for the major MDBs. Their estimates suggest that MDBs can collectively increase their lending between US$598 billion – US$1,903 billion depending on the policy option they opt for. In the paper the authors also estimate the relative costs of expanding and optimizing MDB balance sheets, and conclude that the benefits would likely outweigh the cost of such expansion.