Title page 1

Contents 6

Acknowledgments 3

List of Abbreviations 4

Executive Summary 8

I. The Changing Development Landscape 11

A. Technology shifts 12

B. The Financing Shift 14

a. A Collapse of Official Aid 14

b. Flat Net Private Resource Flows 15

c. Bilateral Official Lending and China's Transition from Lender to Debt Collector 15

d. A Counterweight: The Rise of National Development Banks 15

II. Reforms and Priorities for MDBs 16

A. Scale: Mobilize investment finance at volumes required for economic transformation 17

B. Speed and Delivery 27

C. Reach: Targeting MDB concessional financing to where it is needed most 32

III. Achieving Impact in a Fragmented International Context 35

References 37

Figure 1. The collapse in the global price of solar panels 13

Figure 2. MDB annual commitments, 2019-2025 18

Figure 3. MIGA: Portfolio Expansion, FY 2015-2025 21

Figure 4. Total Private Capital Mobilized by MDBs and DFIs, Middle-and Low-Income Countries, 2017-2024 23