President Macky Sall's candidacy for the office of UN Secretary-General places the reform of the multilateral development banks among its priorities. Created to finance development, these banks today lend well below what the world expects of them.
Capital that could work harder. A review commissioned by the G20 in 2022 established that the multilateral banks could lend hundreds of billions of dollars more from their existing capital, without losing the rating that secures them low rates. Excessive caution leaves useful projects unfunded.
Needs that far exceed supply. Developing countries need trillions of dollars a year for development and climate, while these banks' loans cover only a fraction. The gap is filled in part by expensive debt, the very debt that later smothers budgets.
Reform without weakening. Making better use of balance sheets, mobilising more guaranteed capital and steering loans toward climate and infrastructure raise their firepower without threatening their soundness. The reform rests first on a better use of the capital already paid in, before any new contribution from states.
What the Secretariat can carry. The Secretary-General does not run these banks. He can bring their shareholders together around reform and recall that an institution created for development must lend to the measure of the needs it exists to serve.
Experience in multilateral negotiation. Twelve years as head of state and the chairmanship of the African Union in 2022 underpin these commitments. That experience explains why the vision statement filed with the United Nations frames its proposals as obligations: peace, security and development conceived together; a renewed multilateralism; stronger governance of the Organization.
Africa at its heart, the world in its sights.
The G20's 2022 review of the capital adequacy of the multilateral development banks is public. Read all public positions at www.mackysall.net