With aid in record decline, private finance flat and China now a net debt collector, multilateral development banks (MDBs) have become more important than ever to developing countries.

Since the G20 set out its reform agenda in 2023, MDBs have made real progress. They have expanded lending headroom, introduced new capital instruments and cut processing times. But this still falls short of what is needed. MDB commitments have grown by only around 1% a year in real terms since 2000, much of the new headroom remains unused, and private capital mobilisation fell 36% in low-income countries in 2024.

Drawing on research from Brookings, CGD, ICRIER and ODI Global, this report sets out 14 practical recommendations to help MDBs deliver at greater scale, speed and reach. They include:

• Using existing headroom faster and building more.
• Placing a big bet on originate-to-distribute models to mobilise private capital.
• Backing country-led platforms and working more closely with national development banks.
• Refocusing concessional finance on the poorest and conflict-affected countries.

Report by the Overseas Development Institute