‘Project to improve the integration of bilateral technical cooperation with multilateral financial cooperation with the World Bank Group and other multilateral development banks to finance global public goods and achieve the Sustainable Development Goals’
With the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs), the international community has agreed to strive for economically, socially and ecologically sustainable development that promotes prosperity, eliminates poverty, reduces inequality, and preserves and protects the environment. The SDGs underline the key significance of global agendas such as those to protect the climate and environment, stabilise fragile states, tackle the root causes of displacement and promote health. International financial institutions (IFIs) such as the World Bank Group (WBG), the International Monetary Fund (IMF) and regional development banks (Inter-American Development Bank, Asian Development Bank, African Development Bank, Caribbean Development Bank, Asian Infrastructure Investment Bank, New Development Bank, European Investment Bank and the European Bank for Recovery and Development) are essential pillars of the international financial architecture and play a key role in achieving international goals and agendas such as the 2030 Agenda, the Addis Ababa Action Agenda (AAAA), the Paris Climate Agreement, the G-20 Compact with Africa (CwA) and the Marshall Plan with Africa. As one of the largest shareholders in the international financial institutions, Germany aspires to play an active role in designing content-related concepts and intends to raise awareness of their institutional (statutory) control. High-priority topics in German development cooperation include providing more public goods in the areas of climate and environment, crisis management and the mobilisation of private capital to improve global public development financing. Decisions in the G7 and G20 process that affect WBG and multilateral development banks (MDBs) supplement these priorities, the content of which is to be prepared in the sector project for issues such as ‘MDBs working as a system’, balance sheet optimisation and dormant capital (G7), as well as the Eminent Persons Group, private capital mobilisation and ‘Infrastructure as asset class’ (G20). The lessons learned provide German development cooperation with ways of improving the effectiveness and scalability of approaches in both multilateral and bilateral development cooperation. Global public goods are a necessary basis for many SDGs. However, investment in these goods is systematically too low. WBG and the MDBs – and the entire international financial system – need to provide and mobilise increased funding. However, there is a lack of demand from partner countries for funding by WBG and the MDBs. Bilateral technical cooperation is therefore to be integrated more effectively with multilateral financial cooperation in order to promote the necessary demand from partner countries for funding for global public goods from WBG and MDBs.
The term of the project is two years (July 2018 to June 2020) and the German technical cooperation contribution will cost up to EUR 2,800,000.