The ViewAmid economic uncertainty, multilateral development banks can lead with sustainable investments

Multilateral development banks are uniquely placed to mobilise public and private money to tackle the economic factors stunting growth and sustainable development

They can help drive capital towards projects that address the economic impact of climate change or lack of digital infrastructure across emerging economies

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Motorcyclists make their way through a flooded street after heavy rains in Karachi on September 12. In climate-hit Pakistan, for example, the AIIB is part of a project to link up the megacity through a network of hybrid buses, partly run on biogas, to make commuting faster and safer. Photo: AFP

Published: 10:00pm, 25 Oct 2022Updated: 10:44pm, 25 Oct 2022

Multilateral development banks (MDBs) can play a vital role in tackling urgent economic challenges linked to geopolitics and climate change.

Geopolitical challenges and the energy crisis have put pressure on inflation and public finances – and macroeconomic uncertainty unsettles private investors. MDBs can play a key role in connecting the public and private sectors to tackle the economic factors stunting growth and sustainable development.

MDBs can also show leadership by connecting networks of global investors, driving capital towards projects that address the economic impact of climate change or lack of digital infrastructure across emerging economies.

Emerging Asia, in particular, is in need of increased multilateral support. Pakistan, for example, has been disproportionately affected by an unfolding climate crisis that is costing lives and livelihoods. Bridging the funding gap for climate resilience and adaptation projects will reduce the impact of climate change.

MDBs are well placed to address these challenges and the Asian Infrastructure Investment Bank (AIIB) will do so at its seventh annual meeting this week. With their influence and economic credibility, MDBs are in a unique position: they can improve connectivity within and across countries, build technological infrastructure and accelerate digital innovation.

This includes everything from hard infrastructure, such as roads, railways and energy networks, to digital infrastructure, such as broadband and data centres.