‘ADB looking to partner with India on DPIs in its projects’
climate change, pandemic and natural disasters. So, a lot of development banks can and must take bold actions to help address these challenges. So, we welcome the inputs from all parties to ensure MDBs are well-equipped to play this role, and we appreciate this report by an expert panel group.
The report advocates the evolution of the MDB business model, not just in terms of financing but also in terms of its mandate and operational mechanism. Following the recommendation by an independent G20 panel on the MDB capital adequacy framework, which was issued last year during the Indonesian G20 presidency, we’re now working to stretch our balance sheet. We have proposed to reduce the prudential level of capitalization to the board; if approved, absolutely, it will lead to a significant increase in our lending capacity for the next decade and then beyond.
The report talks about MDB’s operation mechanism. This year, we launched our new operating model after three years of preparation. This is a major organizational transformation, including reorganization, business process reforms, and accelerated decentralization, which enables an ADB to increase its capacity as the region’s climate bank.
This report emphasized the importance of MDB working as a system. I think this is a very reasonable proposal, although it still requires support from the shareholders of individual MDBs. There are two sides to this issue.
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