MDB heads call for closer cooperation to tackle global economic pressures

They note that energy costs, supply disruptions, tighter finance are straining economies

FE REPORT | Published: April 18, 2026 23:37:18

Heads of multilateral development banks (MDBs) have emphasised closer cooperation to support stability, protect development gains, and address rising pressures across member economies amid heightened global uncertainty, including evolving tensions in the Middle East.
Meeting on the sidelines of the World Bank Group-International Monetary Fund Spring Meetings in Washington DC, the heads noted that the impacts of current global developments are already being felt through higher energy costs, supply chain disruptions, and tighter financial conditions.
"MDBs are working more closely than ever to support our members and clients through a complex and evolving global environment," said Masato Kanda, president of the Asian Development Bank and current chair of the MDB Heads Group, in a press statement.
"By combining our financial strength, knowledge, and partnerships, we are helping countries manage immediate pressures while building resilience for the future," he added.
The MDB Heads Group comprises the African Development Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, Islamic Development Bank, New Development Bank and the World Bank Group.
The International Monetary Fund also participated in the discussions.
The MDB heads said they stand ready to provide timely and effective support to help countries manage risks, sustain macroeconomic stability and protect vulnerable populations.
They reaffirmed their commitment to deepen collaboration and scale up impact, with a focus on private sector development, job creation, infrastructure and long-term sustainable growth, in line with their respective mandates and strategies.
To facilitate this, the heads agreed to establish a working group to mobilise private finance and expand financing capacity through originate-to-distribute approaches, enabling MDBs to create bankable opportunities and crowd in private capital at scale.
They also highlighted the need to increase transparency of credit risks in emerging markets through the Global Emerging Markets (GEMs) consortium, scale up local currency financing -- including through the development of domestic financial markets to mitigate exchange rate risks -- and ensure disciplined use of blended finance.
The MDB chiefs further agreed to strengthen collaboration on a common approach to measuring the impact of their operations on job creation, with the aim of lifting households out of poverty, improving social cohesion and reducing vulnerability.
MDBs are also deepening cooperation on critical minerals to build resilient and responsible supply chains that support energy security, digital transformation and employment generation.
They launched "Water Forward", a global initiative aimed at scaling investable water systems to support growth, food security and resilience, while pledging continued joint efforts in priority areas such as artificial intelligence.
The heads also agreed on a common "Value for Money" procurement framework to enhance project quality and sustainability, alongside advancing mutual reliance frameworks to facilitate seamless joint financing.
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