World Bank: World Bank reforms and crypto policy get push

NEW DELHI: The government on Saturday listed the push for a clear policy on crypto assets and consensus over reform of multilateral development banks (MDBs), such as the World Bank, to fund climate change and other global public goods, as major gains from the G20 leaders’ meeting here.
The reforms are critical to allow more resources to flow to poor countries as well as help developing countries combat the challenge of climate change.
“It is one of the most ambitious documents on climate because it moves the language from billions to trillions,” finance minister Nirmala Sitharaman told the media.
In the New Delhi Leaders’ Declaration, the G20 backed the idea of delivering “better, bigger and more effective MDBs” by “enhancing their operating models, improving their responsiveness” and increasing their financing capacity.
“Stronger MDBs will be important to our efforts to mobilise financing from all sources for a quantum jump from billions to trillions of dollars for development… The international finance system must deliver significantly more financing to help developing countries and EMEs (emerging market economies) fight poverty, tackle global challenges and maximise development impact,” the outcome document said.
The backing for MDB reforms was seen as a major gain given that it was during India’s presidency that an independent expert group, co-chaired by former US treasury secretary Larry Summers and 15th Finance Commission chairman NK Singh, was set up. Its first set of recommendations have fed into the outcome document.
While the final Action Plan will be worked out after a meeting next month, when the panel submits its second report, G20 estimated that up to $200 billion can be released over a decade if the capital adequacy framework review recommendations are implemented. Besides, there was a push towards innovating financing and leveraging their balance sheets to provide more resources.
“It is indeed gratifying that the leaders have recognised the work of the Independent Expert Group (IEG)… The increased appropriation that the US has sought as the single largest shareholder would have a positive demonstrative effect on other shareholders to treble the ambition in a manner necessary to meet the challenges from climate change, global public goods, fragility and mounting debt,” said Singh, the co-chair of the panel.
The work on regulating crypto assets, which India has argued cannot be done without global cooperation, is also expected to get a leg-up in the months ahead. “The global push for clear policies on crypto assets has gained momentum under India’s presidency and a global consensus is emerging on the same,” Sitharaman said.
Apart from the two issues which have been in focus, the FM said there were 10 areas under the finance track that got a boost during India’s presidency. These included the push for digital public infrastructure and financial inclusion, financing cities of tomorrow, and a thrust on restructuring of loans of stressed countries such as Zambia and Sri Lanka.

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