Tapping the Potential of Borrower-Led Multilateral Development Banks

While the World Bank and major regional MDBs (the ‘legacy’ MDBs) have a high profile, most MDBs are less well known. In light of the serious challenges facing the world and the limitations of other development agencies, it should be a priority to integrate these MDBs into the international agenda and strengthen their capacity. This paper provides an overview of the governance, operational and financial characteristics of 10 borrower-led MDBs operating in low- and middle-income countries, offers three case studies highlighting their innovations and developmental potential, and proposes policy options to help improve the effectiveness of these MDBs.