G20 expert group convenors meet US Treasury Secy Yellen

Building on the agreement between US President Joe Biden and Prime Minister Narendra Modi on the need for reform of multilateral development banks (MDBs), including boosting their financial capacity, the co-convenors of the independent expert group on strengthening MDBs, Larry Summers and NK Singh, met US treasury secretary Janet Yellen in Washington DC last week.

- Prashant Jha

The group has been set up under India's G20 presidency, and in a measure of the serious intent and commitment of India to the process, Summers and Singh were accompanied by the government of India's chief economic advisor, V Anantha Nageswaran, to the meeting.

During the meeting, which was first a smaller interaction betv Yellen, Summ Singh, and then a wider meeting between top officials of the treasury department and a highlevel delegation working on MDB reform, the group convenors thanked Yellen for "an open and transparent approach".

"This open and transparent approach extended to a multiplicity of sensitive issues. These included the options and opportunities for balance sheet optimisation of MDBs, the garnering of private capital, and also recapitalisation of the bank to meet financing challenges to address the needs of the 21st century," Singh told HT.

The US has, so far, not expressed any commitment to increase its financial commitment to MDBs, a necessary even if not sufficient condition o enable international financial institutions (IFIS) to meet newer challenges such as the climate crisis without compromising on its developmental goals.