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What are Multilateral Development Banks (MDBs)? India needs to actively engage with MDBs to address key development challenges, promote sustainable development, and harness the resources and expertise of these institutions for India’s benefit. Analyse.

Topic: Important International institutions, agencies and fora- their structure, mandate.

3. What are Multilateral Development Banks (MDBs)? India needs to actively engage with MDBs to address key development challenges, promote sustainable development, and harness the resources and expertise of these institutions for India’s benefit. Analyse. (250 words)

Difficulty level: Moderate

Reference: Indian Express

Why the question:

The article discusses India’s upcoming presidency of the G20 and the opportunities it presents for strengthening multilateral development banks (MDBs).

Key Demand of the question:

To write about the need for reforms in various MDBs.

Directive word: 

Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.

Structure of the answer:

Introduction: 

Begin by defining MDBs with examples.

 Body:

First, in brief, write about the major aspects of global economy that these MDBs deal with.

Next, using facts and figures to substantiate, give the successes and limitations of MDBs– voting rights, dominance by global north, foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world etc.

Next, suggest possible reforms that are needed in the MBDs.

Conclusion:

Conclude with a way forward.