THE BIG BANK THEORY?

This briefing paper critiques the G20's "Better, Bolder and Bigger" framework for Multilateral Development Bank (MDB) reform, arguing that its private-sector-first approach prioritizes profit over people and planet. The authors highlight risks including the erosion of accountability, continued fossil fuel financing, and a lack of gender-sensitive strategies, urging a shift toward grants-based financing and systemic democratization.

• The G20's "Better, Bolder and Bigger" framework for MDB reform is criticized for doubling down on a "private-sector-first" approach. The "bigger" aspect aims to triple annual sustainable lending to $390bn by 2030, while "bolder" focuses on private sector de-risking and public-private operating models. The "better" component emphasizes speeding up project approvals and using country-based systems, which the authors argue risks bypassing essential safeguards.
• The push for "better" and "bolder" banks may undermine accountability by delegating financial decision-making from government shareholders to MDB management. The document cites the Asian Infrastructure Investment Bank's (AIIB) 2018 Accountability Framework as an example where the president can approve projects based on monetary thresholds rather than risk assessments. Additionally, relying on "country systems" for safeguards may lead to a "race to the bottom" in environmental and social protections.

APA

Trend Asia (2024). THE BIG BANK THEORY? https://trendasia.org/wp-content/uploads/2024/04/Big-Bank-Theory_Why-MDBs-need-to-rethink-what-it-means-to-be-bigger-better-and-bolder-development-banks.pdf

Chicago

Trend Asia. THE BIG BANK THEORY? 2024. https://trendasia.org/wp-content/uploads/2024/04/Big-Bank-Theory_Why-MDBs-need-to-rethink-what-it-means-to-be-bigger-better-and-bolder-development-banks.pdf.

Wikipedia

{{cite report |author=Trend Asia |title=THE BIG BANK THEORY? |date=April 2024 |url=https://trendasia.org/wp-content/uploads/2024/04/Big-Bank-Theory_Why-MDBs-need-to-rethink-what-it-means-to-be-bigger-better-and-bolder-development-banks.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{trendasia2024big, author = {{Trend Asia}}, title = {{THE BIG BANK THEORY?}}, institution = {Trend Asia}, year = {2024}, month = apr, url = {https://trendasia.org/wp-content/uploads/2024/04/Big-Bank-Theory_Why-MDBs-need-to-rethink-what-it-means-to-be-bigger-better-and-bolder-development-banks.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }