Developing countries are increasing their influence within the multilateral development banking system

The Eurasian Development Bank (EDB) has published a study on the structure and development of multilateral development banks (MDBs), which focuses in particular on the growing role of Global South countries in the global financial system.

According to the report, 25 out of 37 headquarters of multilateral development banks are currently located in developing countries. The authors of the study believe this reflects these countries’ desire to establish their own long-term financing mechanisms and to exert greater influence on the global development agenda.

EDB experts note that the coming decade could see a further strengthening of the position of developing economies. Key trends identified include the establishment of new development banks focused on the Global South, the expansion of financing in national currencies, and the mobilisation of private capital for development projects.

The study also presents a new geographical classification of MDBs, dividing them into sub-regional, regional, inter-regional and global institutions. The majority of existing banks operate at the sub-regional level and focus on addressing local development challenges.

A separate section is devoted to the concept of the ‘non-investment triad’, which comprises technical assistance, research and educational programmes. The authors of the report believe that these areas are becoming an increasingly important tool for supporting reforms, project preparation and human capital development.

According to the EDB, the annual volume of investment by multilateral development banks amounts to around $200 billion. However, this is insufficient to address the infrastructure and other challenges facing developing economies; the system will therefore require new mechanisms for mobilising resources and expanding financing opportunities.