Increasing Lending Capacity with Balance Sheet Changes
Yellen discussed an initial set of balance sheet changes with global finance officials, enabling the World Bank to lend an additional $50 billion over ten years while retaining its AAA credit rating. The talks explored ways to deepen efforts with the World Bank and other multilateral development banks.
More Progress Needed for Resilience and Shared Prosperity
Despite approving changes to sharpen the World Bank's mission of ending extreme poverty, boosting shared prosperity, and building resilience, Yellen called for more progress and "bold action" through additional reforms using a staged implementation approach.
Addressing 21st-Century Challenges
The proposed changes aim to enhance the World Bank's ability to address modern challenges, such as climate change, fragility, and pandemics, by leveraging upcoming events like the Summit for a New Global Financial Pact, G20 Leaders' Summit, World Bank and IMF annual meetings, and the UN COP28 climate conference.
Integrating Global Challenges and Engaging Private Capital
Yellen also emphasized the need for the World Bank to systematically integrate regional and global challenges into its country diagnostic reports and country engagement while increasing its focus on raising additional private capital.
Outgoing President Malpass Supports Yellen's Reforms
Outgoing World Bank President David Malpass expressed support for Yellen's call for reforms, stating that the bank had responded with "vigor and speed" and acknowledged the necessity for a sharper focus on sustainability, resilience, and inclusiveness.