Not easy to fix IMF, World Bank, WTO

One positive outcome from the summit of the Group of 20 recently concluded in New Delhi was a commitment to reform the architecture around global finance and trade by reinvigorating the three institutions at its centre: the World Bank, the International Monetary Fund (IMF) and the World Trade Organisation (WTO). While the intent is commendable, the economic and geopolitical realities prevalent today are likely to make achieving these goals an uphill task.

The reforms that are needed, which several experts have flagged for years, are long overdue. For example, the World Bank and the IMF have been largely missing in action when it comes to extending climate finance at scale. Even infrastructure funding, which was once the World Bank’s core activity, has fallen far short of needs. The leadership of the bank and fund has continued to be monopolised by the United States and Europe, respectively, and the voting powers within these institutions do not reflect the realities of global economic power.