Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, engaged in a series of significant interactions and meetings on the sidelines of the World Bank and International Monetary Fund (IMF) Annual Meetings. Most notably, she interacted with World Bank President Ajay Banga, where she discussed private capital participation in Global Public Goods, energy security, and Multi-Lateral Development Banks (MDB) reforms, which aims to leverage private capital streams to attract larger investments to help achieve the 2030 Sustainable Development Goals.
Sitharaman’s Interaction with Ajay Banga
Sitharaman expressed her anticipation for the World Bank to advance the Independent Evaluation Group’s (IEG) recommendations on MDB reforms from India’s G20 Presidency and requested regular monitoring of the implementation of these recommendations. The IEG was tasked with assessing and providing recommendations for reforming Multilateral Development Banks (MDBs) under India’s G20 Presidency. The IEG’s recommendations are encapsulated in what is known as the “Triple Agenda,” which aims to enhance the effectiveness and impact of MDBs in addressing global challenges.
During the meeting, she emphasized the need for a broader consultation process on the advisory mechanism jointly convened by the World Bank and IMF. Mr. Banga reiterated the World Bank’s interest in collaborating with India’s budget priorities, including skilling, water and sanitation, and urban development. He noted substantial progress on the IEG recommendations presented at the G20, and emphasized the World Bank Group’s focus on jobs, knowledge frameworks, and bankable projects.
These engagements underscore India’s active role in global financial and development discussions, highlighting its commitment to resilient infrastructure, MDB reforms, and collaborative efforts with international partners.
Interaction with Bank-Fund Staff India Club
Smt. Nirmala Sitharaman interacted with members and families of the Bank-Fund Staff India Club, one of the oldest clubs within the World Bank group, comprising Indian and Indian-origin staff. The event, attended by approximately 400 people, was jointly organized by the India Club, South Asia Vice President, and Executive Directors for the World Bank and IMF. A highlight of the event was a performance by children of World Bank staff, trained in the Indian classical dance form Kaliya Mardan.
During her address, the FM highlighted the ongoing engagement of the G20 with the Multilateral Development Banks (MDB) Reform agenda. She highlighted the political momentum from G20 major shareholders, motivating MDBs to pursue significant reforms. She praised the Brazilian Presidency for building on the mandates from the Leaders Summit in Delhi and previous G20 Presidencies, ensuring continuity and consistency.
‘Bretton Woods Institutions at 80’
Sitharaman, participated in a pivotal discussion on the ‘Bretton Woods Institutions at 80: Priorities for the Next Decade’. The event was organized by the Center for Global Development on the sidelines of the World Bank and IMF Annual Meetings 2024.
During her address, Smt. Sitharaman emphasized India’s proactive role in supporting neighboring countries in distress, often stepping in before international institutions like the IMF. She highlighted India’s approach of providing aid without imposing conditions, reflecting cultural values and regional solidarity.
“Much before the IMFs of the world reached some countries in our neighbourhood…we’ve come out in time to help countries in distress with no conditions attached. In the typical oriental fashion, I will not name the country, I will not name the money which have been given, because they are very important to my cultural values and also to my neighbourhood,” she stated.
Sitharaman elaborated on India’s efforts to extend highly discounted lines of credit to build essential infrastructure such as institutions, bridges, ports, and railway stations. Without naming them, She noted that many recipient countries are not in a position to repay, yet India continues to support them quietly, driven by a commitment to the global south.
“We extend a line of credit, which is a highly discounted line of credit, to build the institutions, bridges, ports, railway stations and secretaries and many of them are in no position to pay back and we have not made a noise about it. We will still continue to do it because we think the global south, will be with us. We want to help them out. We want all of them to get an opportunity,” she added.
Other panellists during the discussions included Lawrence H. Summers, President Emeritus and Charles W. Eliot University Professor, Harvard University; Carlos Cuerpo, Minister of Economy, Trade and Business, Spain and Rania Al Mashat, Minister of Planning, Economic Development, and International Cooperation, Egypt.
Roundtable on Disaster Resilient Infrastructure
FM Sitharaman chaired a Roundtable on Disaster Resilient Infrastructure, with participation from finance ministers and representatives from various countries, including Zambia, Bhutan, Madagascar, Angola, Comoros, Democratic Republic of Congo, Zanzibar, Ethiopia, Equatorial Guinea, USAID, US National Security Council, and the French Climate Envoy.
In her opening remarks, she highlighted Prime Minister Narendra Modi’s initiative, the Coalition for Disaster Resilient Infrastructure (CDRI), aimed at transforming infrastructure systems to withstand natural disasters and adapt to climate change. She stressed the importance of resilient economic growth, citing India’s efforts in building institutional capacity through national and state-level disaster management agencies. She shared India’s experience during Cyclone Amphan in 2020, where coordinated efforts led to the evacuation of over 2.4 million people.
The Finance Minister reiterated India’s commitment to sharing best practices and extending assistance to the Global South. She mentioned the creation of a Disaster Risk Reduction Working Group under India’s G20 Presidency to enhance commitment to disaster and climate-resilient infrastructure and prioritize stronger national financial frameworks for disaster risk reduction.
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