The Role of Multilateral Development Banks and Development Assistance in the Provision of Global Public Goods

Providing global public goods, such as health security and climate resilience, has become increasingly urgent in the face of global challenges. This paper examines the critical role of multilateral development banks and official development assistance (ODA) in addressing these challenges. It highlights the evolution of the banks from project-based financing to programme support as well as their countercyclical functions during crises, emphasizing their contributions to climate finance and global health initiatives.

The paper also evaluates the efficacy of ODA and specialized global funds in supporting environmental protection, pandemic preparedness and biodiversity. While multilateral development banks and ODA providers have increased their activities in these areas, significant financing and coordination remain. Recommendations include enhanced capitalization of the multilateral development banks, concessional credit mechanisms for both low- and middle-income countries, and innovative financial tools to leverage private sector investment. Addressing these gaps is essential to achieve equitable and sustainable development and the effective provision of global public goods.