PM urges multilateral dev banks to set viable debt management plan for vulnerable countries

Prime Minister Sheikh Hasina on Monday put emphasis on a collective response to confront the multifaceted challenges that the world is facing now.

“We need to take a risk-informed approach that considers multidimensional vulnerability, promotes gender equality, strengthens social protection, and expands concessional lending through Multilateral Development Banks (MDBs),” she said.

The prime minister said this in her pre-recorded Keynote address at the panel discussion titled ‘Development Cooperation: Long-term Resilience and the Role of Multilateral Development Banks’ in the United Nations Economic and Social Council (Ecosoc).

She said that by working together and leveraging the resources and expertise of MDBs, significant progress can be made towards creating a more resilient and prosperous world for generations to come.

“Let’s work together to build a prosperous and, poverty- and-hunger-free world by supporting the poor people through MDBs,” she said.

Hasina said that the world economy is now passing through multiple challenges - firstly due to the COVID-19 pandemic and later on by the staggering impacts of Russia-Ukraine war.

“At this complex global context, development cooperation has become very crucial in building resilience of the vulnerable segment of the global community and addressing the multi-dimensional crises,” she said.

She mentioned that it is strongly believed that multilateral development banks (MDBs) can play an important role in bringing a positive change to the critical global scenario.

She said that financing from MDBs will foster multi-party dialogues to address pressing global issues and advance policies that will ensure financial support in achieving the SDGs as per in accordance with its mandate specified in the 2015 Addis Ababa Action Agenda.

“MDBs have to play a critical role in promoting global public goods, such as healthcare, education, and technology. These have a significant impact on sustainable development,” she said.

The PM said that the MDBs are uniquely positioned to provide technical assistance and knowledge to developing countries, including LDCs, and help them build capacity and promote sustainable development.

“While working towards building resilience in developing countries, we must also admit their ability to explore their full potentials. These include financial inequalities, digital divides and development divides. The focus should be on building long-term resilience through sustainable and equitable development.”

She said that it is observed that the interest rates and service charges of MDBs are increasing. Such measure are pushing the developing countries into further tight spot.

She urged the MDBs to fix a debt management plan which are financially viable and also contribute to economic development of vulnerable countries.

The prime minister said that Bangladesh became a lower-middle-income country in 2015. It is also qualified for graduation from the LDCs to a developing country.

“Our goal is to attain the status of an upper middle-income country by 2031 with the ultimate vision to make a prosperous, developed and knowledge-based SMART Bangladesh by 2041.”

But, she said, our development journey has been impeded by the current geopolitical crisis, economic uncertainty and climate change impacts.

“The world community should come forward to help countries like us overcome the crises,” she added.