Reform development approach, banks told

31 Jan 19

Multilateral banks need a “dramatic” overhaul of strategies to achieve global goals by 2030, warns the head of the Islamic Development Bank.

Bandar Hajjar, president of the Islamic bank, estimates there is a $200 trillion finance gap between available government budgets and funds needed to meet the Sustainable Development Goals.

At least $2trn must be raised every year for the world to meet its goals – but according to the IMF pledges from international financial institutions and donor countries amount to just $400bn.

“There needs to be a dramatic change in strategy [of MDBs] if we are to fulfil the SDGs by 2030,” Hajjar said.

Speaking at the World Economic Forum last week in Davos, at a session on public private partnerships, he warned that despite progress since they were agreed in 2015, the goals would not be achieved in time.  

The president said there could be a risk of reversing progress.

“We must look beyond all the talking and warm words, and keep these people front of mind as we strive to find better solutions to development and work towards the SDGs,” Hijjar said.

“Never has the need for cooperation and partnership been of such paramount importance as it is today.”

He said the 17 goals – which include ending poverty, achieving gender equality and good governance – represent the start of a “new era”.

The IsDB is calling on other development banks to act as catalysts in order to boost development finance from the private sector.

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