The World Bank must reform

Overhauls to multilateral development banks could be a lasting legacy of India's G20 presidency

Reforming the multilateral development banks (MDBs) is an important aspect of the global reforms agenda under India’s G20 presidency. The World Bank Group (WBG), as the largest MDB, is the most prominent candidate for such reforms. By taking a lead in reforming itself, it can set an example for other MDBs.

The WBG performs three main roles: That of a financier; a knowledge bank; and a trusted advisor. As a financier, it needs to derisk as well as scale up the quantum of lending to its member low-income countries (LICs) and middle-income countries (MICs).

The LICs lack market access. Their economies are