For all latest news, follow The Financial Express Google News channel.
Experts at a discussion today (Wednesday) called for urgent reforms to the global multilateral development finance system, warning that declining aid, geopolitical fragmentation and shrinking concessional resources pose significant challenges for South Asian countries, including Bangladesh.
The observations came at a virtual discussion titled "OECD Multilateral Development Finance 2026 Report (MDFR): Perspectives from South Asia", jointly organised by the Centre for Policy Dialogue (CPD) and the Organisation for Economic Co-operation and Development, BSS reports citing a press release.
Speaking as the chief guest, Dr Rashed Al Mahmud Titumir, adviser on Finance and Planning to the Prime Minister, said the report should be viewed not merely as a warning over declining aid but as a call to rethink how development will be financed in the coming decades.
He said Bangladesh is pursuing a diversified financing strategy through stronger domestic resource mobilisation, capital market reforms, bond market development and increased private investment.
He also urged multilateral institutions to respond more effectively to the realities faced by countries vulnerable to climate, food and energy shocks.
Executive Director of CPD Dr Fahmida Khatun said the report comes at a critical time as the global development finance system is undergoing a historic transformation.
She noted that Bangladesh has benefited substantially from development finance in infrastructure, health, education and social sectors, but changing global financing trends could create fresh challenges ahead of its graduation from the Least Developed Country (LDC) category.
Senior Economist and Head of Unit at the OECD, Henri-Bernard Solignac-Lecomte, stressed that preserving and renewing the multilateral development finance system would require bold reforms.
Presenting the report, Leonardo Altieri said multilateral development finance is entering a new phase marked by shrinking resources, with contributions expected to decline significantly over the coming years.
Another OECD expert, Marius Gurin, said although multilateral outflows reached nearly $300 billion in 2024, early signs of financial strain are emerging, particularly in concessional financing for poorer countries.
Experts from Pakistan, Nepal and Sri Lanka stressed the need to safeguard concessional financing, strengthen climate finance and reform eligibility criteria to better reflect climate vulnerability, debt sustainability and development needs rather than relying solely on income levels.
Director General (DG) of the Multilateral Economic Affairs Wing at Bangladesh's Ministry of Foreign Affairs, Shah Asif Rahman, called for stronger commitments from developed countries and international financial institutions to support implementation of the Sustainable Development Goals,
climate action and Bangladesh's smooth LDC graduation.
The discussion concluded that South Asian countries should play a more active role in shaping reforms of the global multilateral development finance architecture while strengthening domestic resource mobilisation and ensuring continued access to affordable and predictable development finance.