Highlight 18/2023 – The World Bank Group: A Partner for Sustainable Development

Mohammed Al-Khaifi, 12 June 2023

The 2030 Agenda for Sustainable Development is a global action plan that aims to end poverty, protect the planet, and make sure that all human beings are able to enjoy peace and prosperity by 2030. Good health, water sanitation, and proper education are all part of the 17 goals the United Nation have adopted and aims to implement by the year 2030.

The World Bank Group has a relationship with the United Nation (UN) that is treaty based which dates back to its founding. Through this relationship, the World Bank Group supports the Member States while contributing to effective development.

The World Bank Group has played a huge role in promoting the Sustainable Development Goals (SDGs) through methods such as providing advisory services to Member States specifically in the areas of poverty reduction, infrastructure development, and environmental sustainability. The SDGs goes hand in hand with the World Bank Group’s twin goals which are: ending extreme poverty and boosting shared prosperity. The World Bank Group is working with client countries to achieve the agenda using three crucial tools which are: Data, Finance, and Implementation.

The past few years witnessed the World Bank Group making some commitments in relation to the 2030 Sustainable Development Agenda including but not limited to:

1. MDBs agreement in Addis Ababa in 2015 to a collective $400 billion in development spending from the years 2016 – 2018.
2. Promote domestic resource mobilization.
3. Commitment to Household Budget Surveys for the 78 poorest countries.
4. Climate financing.

Along with that, the World Bank Group has also made some specific contributions to the SDGs such as:

1. Financing for development – The World Bank Group has been one of the major actors in development financing for Member States by providing loans and grants in the areas of sustainable development. In the year 2020, the World Bank Group committed $83 billion in grants, loans, equity investments, and guarantees to help Member States achieve their development priorities.
2. Implementation support – The World Bank Group provides aid for Member States in implementing the SDGs by providing technical assistance, policy advice, and knowledge sharing. Tools and resources were developed by the World Bank Group accordingly to assist the countries track their development on the SDGs.
3. Climate action – The World Bank Group is one of the leaders when it comes to supporting climate action especially through its Climate Change Action Plan. The World Bank Group is assisting countries reduce greenhouse gas emissions, increase access to clean and renewable energy, and build resilience to the impacts of climate change.
4. Private sector engagement – The engagement of the World Bank Group with the private sector to support and achieve the SDGs are mainly in areas of renewable energy, sustainable agriculture, and green infrastructure.

The private sector plays a huge role in achieving the SDGs. Private sector corporations promote, innovation, invest in infrastructure, and create jobs which is very important when it comes to reducing poverty and promoting economic growth. As it stands, the private sector needs to shift more towards the sustainable business practices to achieve the SDGs since the practices implemented now have a significant impact on the environment and social well-being.

As a leading international institution, the World Bank Group has been at the forefront of efforts to mobilize private sector support for the SDGs. The International Finance Corporation (IFC) has been continuously promoting private sector investment in SDG related areas such as renewable energy, infrastructure, water sanitation, and healthcare.

One of the ways the World Bank Group is progressing the SDGs is through Global Development Finance (GDF). Global Development Finance is a publication that provides exhaustive data and analysis on private sector investment in developing countries. It covers a variety of topics such as investment flows, financing instrument and investment trends. Furthermore, it allows the mobilization of financial resources around the world for the purpose of economic development. One common approach of private sector development in global development is Foreign Direct Investment (FDI) when businesses and companies in developed countries invest in businesses and projects in developing countries. This helps by creating jobs, transferring knowledge and technology, and generate economic growth. In addition, the private sector can provide loans to businesses and governments in developing countries including commercial banks and microfinance institutions.

Where public-private partnerships for the achievement of the SDGs are concerned, the World Bank Group has shown genuine commitment to the cause. While there may be areas where these partnerships could be improved, solid foundations have been established with the World Bank Group and this could be built upon to accelerate progress towards achieving the SDGs by 2030.

Mohammed Al-Khaifi, Highlight 18/2023 – The World Bank Group: A Partner for Sustainable Development, 12 June 2023, available at www.meig.ch

The views expressed in the MEIG Highlights are personal to the authors and neither reflect the positions of the MEIG Programme nor those of the University of Geneva.