IFI Memberships Highlight the Strength of the Financial Pillar of the Global Alliance and a United Effort to Implement Evidence-Based Public Policies and Programs That Can Accelerate Progress Toward SDGs 1 and 2.
Leaders of major multilateral development banks gathered to celebrate the membership of international financial institutions in the Global Alliance Against Hunger and Poverty. This symbolic meeting was held at the invitation of Finance Minister Fernando Haddad during the fourth and final meeting of Finance Ministers and Central Bank Governors under Brazil's G20 presidency. Representatives from the African Development Bank (AfDB), ASEAN Infrastructure Investment Bank (AIIB), Development Bank of Latin America and the Caribbean (CAF), European Investment Bank (EIB), Inter-American Development Bank (IDB), International Fund for Agricultural Development (IFAD), International Monetary Fund (IMF), New Development Bank (NDB), and the World Bank Group (WBG) were present.
The Global Alliance Against Hunger and Poverty is one of the key initiatives delivered by Brazil's G20 presidency, reflecting President Lula's unwavering commitment to the cause both domestically and globally. "The gathering of these leaders shows that we are building a solid financial pillar to support the Global Alliance's mission," said Minister Fernando Haddad.
In addition to countries and regional organizations like the African Union and the European Union, the Alliance also includes non-state actors such as civil society organizations, research institutes, philanthropies, and international organizations, including Multilateral Development Banks and Funds. The Alliance will structure its work around three pillars - National, Financial, and Knowledge - with Banks and Funds contributing to the latter two pillars.
The involvement of Banks and Funds is essential not only due to their ability to provide concessional loans and grants, but also for their resources mobilization capacity and the ability to support country platforms. These are particularly important given the high indebtedness and limited fiscal space in countries most vulnerable to food insecurity, malnutrition, and multidimensional poverty. Unlike countries that also donate resources to address these challenges, IFIs can multiply financing. When a country donates or lends one dollar to another, that dollar is transferred. However, when a country contributes one dollar to an IFI, it can multiply loans and donations by approximately four times. In this regard, the Global Alliance calls for ambitious replenishments for the IFIs and for reforms to make them better, bigger, and more effective, as approved in the Roadmap for Multilateral Development Bank Reform, another delivery of the G20 Finance Track.
The Global Alliance also encourages IFIs to develop innovative financial instruments that can scale up resources. In this regard, the Ministry of Finance is supporting a new instrument designed by the IDB and AfDB that may be able to multiply deposits by approximately eight times. IDB President Ilan Goldfajn remarked, "The IDB is proud to partner in the Global Alliance Against Poverty and Hunger. In collaboration with the African Development Bank, we've developed the SDR Hybrid Capital Instrument to empower nations to tackle chronic hunger and extreme poverty without extra budgetary costs. Together, we can drive real change." AfDB's president Akimwumi A. Adesina remarked that "the African Development Bank Group is proud to partner with the G20 Brazilian Presidency and support the Global Alliance against Hunger and Poverty. Together, we must act with urgency and resolve to scale the fight against poverty, end hunger and eradicate malnutrition" and specified that "Our strength lies in consolidating our collaboration, mobilizing resources at speed and scale, and deploying them where they are needed most. The Special Drawing Rights Hybrid Capital Instrument is one of the solutions to do so".
Beyond financing, IFIs bring technical expertise in project design and implementation, which is also valuable for countries undertaking these initiatives. This expertise positions them as crucial players in high-impact actions that can set countries on the path to achieving Sustainable Development Goals 1 and 2 by 2030, the Alliance's primary goal. "Put simply: hunger and poverty are intertwined. We need to address them both and work tirelessly to eliminate them from our world. As part of our commitment to the Global Alliance Against Hunger and Poverty-and our partnership with Brazil-the World Bank Group will be the lead knowledge partner for the Alliance," said Ajay Banga, President of the World Bank Group. "Knowledge is more impactful when paired with resources, which is why we will also make IDA financing available to fund countries' choices from the Global Alliance policy basket. Our goal is to support half a billion people with social protection by the end of 2030. We are determined to deliver, and we see this Alliance as a cornerstone of that effort."
For many countries, policies and programs focused on infrastructure development can be transformative. In this regard, NDB's Vice President Anil Kishora stated, "By joining the Global Alliance, NDB reinforces its commitment to sustainable development in its member countries, thereby contributing to achieving the interlinked SDGs of 'No Poverty' and 'Zero Hunger." AIIB's President Jin Liqun affirmed, "The AIIB is proud to be an anchor partner in this groundbreaking initiative under the Brazilian G20 Presidency. Building sustainable, inclusive, and resilient social, physical, and digital infrastructure is at the core of combating global poverty and hunger."
Speaking on behalf of CAF, Vice President Antonio Silveira stated, "Membership reaffirms the bank's commitment to sustainable development and regional cooperation. We are dedicated to mobilizing resources and expertise to drive impactful solutions aligned with the SDGs, particularly those focused on eradicating hunger and poverty." CAF was the first multilateral development bank to join the Global Alliance, which is open beyond G20 members, as demonstrated by IFAD, which has also completed its admission process. In a message sent to group leaders, IFAD President Alvaro Lario noted, "The world's incredible progress on hunger and poverty over the last seventy years shows us that a fairer world is possible with the right investments and political will. The Global Alliance has the potential to provide both, and IFAD is committed to working with all members to tackle rural poverty, reduce inequalities, and catalyze investments-especially in the rural communities that need it most."
On the final day of negotiations at the IMF's hearquarters, the IMF Managing Director Kristalina Georgieva saluted "Brazil's leadership for putting the eradication of poverty and hunger at the center of the G20 agenda. The IMF contributes to these objectives by supporting our members in promoting inclusive growth and building economic resilience". Minister Haddad highlighted that "Financing international cooperation around the Alliance's policy basket is a promising path forward" and that "today's meeting signals our willingness to move decisively down this path". He concluded by invinting " other state financing agents, philanthropies, and multilateral development banks and funds to also become members of the Alliance." In that spirit, EIB President Nadia Calviño celebrated the reunion: "Fighting poverty and hunger is at the heart of the mission of the multilateral development bank family. Working together, we go further and faster."
