Multilateral Development Bank
Encyclopedia
A multilateral development bank (MDB) is an institution, created by a group of countries, that provides financing and professional advising for the purpose of development
. MDBs have large memberships including both developed
donor countries and developing
borrower countries. MDBs finance projects in the form of long-term loans at market rates, very-long term loans (also known as credits) below market rates, and through grants.
The following are usually classified as the main MDBs:
There are also several "Sub-Regional" Multilateral Development Banks. Their membership typically includes only borrowing nations. The banks borrow from and lend to their members. These banks include:
There are also several Multilateral Financial Institutions (MFIs). MFI's are similar to MDBs but they are sometimes separated since they have more limited memberships and often focus on financing certain types of projects.
International development
International development or global development is a concept that lacks a universally accepted definition, but it is most used in a holistic and multi-disciplinary context of human development — the development of greater quality of life for humans...
. MDBs have large memberships including both developed
Developed country
A developed country is a country that has a high level of development according to some criteria. Which criteria, and which countries are classified as being developed, is a contentious issue...
donor countries and developing
Developing country
A developing country, also known as a less-developed country, is a nation with a low level of material well-being. Since no single definition of the term developing country is recognized internationally, the levels of development may vary widely within so-called developing countries...
borrower countries. MDBs finance projects in the form of long-term loans at market rates, very-long term loans (also known as credits) below market rates, and through grants.
The following are usually classified as the main MDBs:
- World BankWorld BankThe World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
- African Development BankAfrican Development BankThe African Development Bank Group is a development bank established in 1964 with the intention of promoting economic and social development in Africa...
- Asian Development BankAsian Development BankThe Asian Development Bank is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia...
- European Bank for Reconstruction and DevelopmentEuropean Bank for Reconstruction and DevelopmentFounded in 1991, the European Bank for Reconstruction and Development uses the tools of investment to help build market economies and democracies in 30 countries from central Europe to central Asia. Its mission was to support the formerly communist countries in the process of establishing their...
- Inter-American Development BankInter-American Development BankThe Inter-American Development Bank is the largest source of development financing for Latin America and the Caribbean...
Group
There are also several "Sub-Regional" Multilateral Development Banks. Their membership typically includes only borrowing nations. The banks borrow from and lend to their members. These banks include:
- Corporación Andina de FomentoCorporación Andina de FomentoCAF – Latin American development bank – has the mission of stimulating sustainable development and regional integration by financing projects in the public and private sectors, and providing technical cooperation and other specialized services...
(CAF) - Caribbean Development BankCaribbean Development BankThe Caribbean Development Bank is a financial institution which assists Caribbean nations in financing social and economic programs in its member countries...
(CDB) - Central American Bank for Economic Integration (CABEI)
- East African Development BankEast African Development BankEast African Development Bank is a development finance institution with the objective of promoting development in East Africa.-Overview:...
(EADB) - West African Development BankWest African Development BankThe West African Development Bank - WADB is an international Multilateral Development Bank established in 1973 to serve the nations of Francophone and Lusophone West Africa...
(BOAD) - Black Sea Trade and Development BankBlack Sea Trade and Development BankThe Black Sea Trade and Development Bank is an international financial institution that supports economic development and regional cooperation by providing trade and project financing, guarantees, and equity for development projects supporting both public and private enterprises in its member...
(BSTDB) - Eurasian Development BankEurasian Development BankEurasian Development Bank is an international financial organization founded by the Russian Federation and the Republic of Kazakhstan in 2006.-Mission:...
(EDB)
There are also several Multilateral Financial Institutions (MFIs). MFI's are similar to MDBs but they are sometimes separated since they have more limited memberships and often focus on financing certain types of projects.
- European CommissionEuropean CommissionThe European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
(EC) - European Investment BankEuropean Investment BankThe European Investment Bank is the European Union's long-term lending institution established in 1958 under the Treaty of Rome. A policy-driven bank, the EIB supports the EU’s priority objectives, especially European integration and the development of economically weak regions...
(EIB) - International Fund for Agricultural DevelopmentInternational Fund for Agricultural DevelopmentThe International Fund for Agricultural Development , a specialized agency of the United Nations, was established as an international financial institution in 1977 as one of the major outcomes of the 1974 World Food Conference. IFAD is dedicated to eradicating rural poverty in developing countries...
(IFAD) - Islamic Development BankIslamic Development BankThe Islamic Development Bank is a multilateral development financing institution located in Jeddah, Saudi Arabia. It was founded by the first conference of Finance Ministers of the Organisation of the Islamic Conference , convened 23 Dhu'l Qa'dah 1393 AH.The bank officially began its activities on...
(IDB) - Nordic Investment BankNordic Investment BankThe Nordic Investment Bank is an international financial institution founded in the mid-1970s by the five Nordic countries: Denmark, Finland, Iceland, Norway and Sweden. In 2005, Estonia, Latvia and Lithuania became members of the Bank. NIB’s headquarters are located in Helsinki, Finland...
(NIB) - OPEC Fund for International DevelopmentOPEC Fund for International DevelopmentThe OPEC Fund for International Development is a multilateral development finance institution established in 1976 by the Member Countries of the Organization of the Petroleum Exporting Countries...
(OPEC Fund) - Nederlandse Financieringsmaatschappij voor Ontwikkelingslanden NV (FMO)
See also
- Climate Investment FundsClimate Investment FundsThe Climate Investment Funds were designed by developed and developing countries and are implemented with the multilateral development banks to bridge the financing and learning gap between now and the next international climate change agreement...
- Development Finance InstitutionDevelopment Finance InstitutionDevelopment finance institution is generic term used to refer to a range of alternative financial institutions including microfinance institutions, community development financial institution and revolving loan funds...
- International financial institution
- Continental organization