- Development Committee Pushes World Bank to Deliver Faster, Broader Impact Amid Rising Global Challenges
The World Bank Group (WBG) has been urged to intensify reforms and accelerate development delivery as ministers and senior officials concluded the 111th Meeting of the Development Committee in Washington, D.C., on Thursday, April 24, 2025
Chaired by Sweden’s Finance Minister, Ms Elisabeth Svantesson, the Committee’s final statement reflected a strong consensus on the urgent need for the WBG to strengthen its role as both a premier financing institution and a global knowledge hub in a world facing escalating fragility, conflict, climate shocks, and economic uncertainty.
“Building a world free of poverty on a liveable planet requires decisive policy action,” the Committee said, calling for stronger efforts to boost jobs, enhance macroeconomic stability, mobilise private investment, and raise productivity, particularly in vulnerable developing economies.
The meeting took place against a backdrop of multiple crises, with ministers highlighting persistent debt burdens, food insecurity, migration pressures, and environmental degradation affecting millions globally. However, they emphasised that the Development Committee remains a forum for economic and development discussions, not for resolving geopolitical disputes.
Support for the World Bank’s Evolution Agenda
The Committee welcomed ongoing reforms under the WBG’s Evolution Roadmap, including efforts to streamline operations, leverage new financial tools such as hybrid capital and portfolio guarantees, and implement recommendations from the G20 Capital Adequacy Framework. These reforms aim to unlock greater lending capacity while preserving the Bank’s strong financial standing.
Members encouraged the Bank to continue driving improvements in operational efficiency and deepen its role as a “Knowledge Bank” through expanded initiatives like the WBG Academy, new knowledge hubs, and a strengthened focus on outcomes via the WBG Scorecard.
They also praised the introduction of the new Crisis Preparedness and Response Toolkit and steps to better integrate country engagement strategies, particularly in fragile and conflict-affected situations.
Focus on Jobs, Youth, and Private Sector Growth
In a significant shift, the Committee placed particular emphasis on job creation as the central pillar for fighting poverty and promoting stability, especially as over a billion young people are set to enter the workforce in developing countries over the next decade.
Ministers called for the private sector to play a greater role in driving employment growth, supported by reforms that strengthen institutions, expand access to finance, especially for small and medium-sized enterprises (SMEs), and enhance skills development aligned with labour market needs.
The forthcoming World Bank strategy on Fragility, Conflict, and Violence (FCV) will be critical to shaping future interventions in conflict-affected states, members said, while middle-income countries were urged to focus on tackling productivity declines, limited capital formation, and vulnerability to economic shocks.
Climate Action, Energy Access, and Resilience
The Committee reaffirmed its support for climate action, commending the WBG’s commitment to allocate 45 percent of its financing to climate-related investments and extending the Climate Change Action Plan to FY2026.
However, ministers also stressed the need for pragmatic development responses, urging the WBG to balance mitigation measures with stronger investment in resilience and adaptation, including sustainable infrastructure, smart agriculture, water management, and disaster-risk management.
Members encouraged the Bank to explore additional options for expanding affordable and reliable energy access, including the potential role of nuclear energy. They also reiterated support for the “Mission 300” initiative, which aims to provide reliable electricity to 300 million Africans by 2030.
Financing for Development and IDA21
The Committee highlighted the importance of scaling up collaboration with other multilateral development banks (MDBs), international financial institutions, governments, civil society, and the private sector. It called for continued joint work with the IMF on debt transparency and sustainability efforts.
Donor support for IDA21, the latest replenishment of the Bank’s International Development Association (IDA) facility for low-income countries, was welcomed. Ministers emphasised that IDA remains a key tool for responding to the urgent needs of the most vulnerable populations.
The Bank was also encouraged to maintain strong accountability mechanisms and to advance regular shareholding reviews, consistent with the Lima Principles, with a view toward completing the 2025 Shareholding Review in time for the next Annual Meetings.
Looking Ahead
The Committee’s statement sets an ambitious agenda for the World Bank at a time when development resources are under growing strain and global risks continue to rise.
With a heightened focus on operational delivery, job creation, climate resilience, and private sector mobilisation, ministers made clear that the WBG must continue evolving if it is to meet the demands of the coming decade.
The next meeting of the Development Committee is scheduled for October 2025 in Washington, D.C.
