Statement by Mathias Cormann - 108th Meeting of the Development Committee - The role of multilateral development finance in responding to recent shocks and accelerating development progress

Jul 19, 2026

Statement by Mathias Cormann, Secretary-General of the OECD, delivered at the 108th Meeting of the Development Committee (October 12, 2023, Marrakech, Morocco). It describes how multilateral development finance remains a stable, counter-cyclical source for developing countries amid rising instability, hunger, extreme poverty, and expanding financing gaps toward the SDGs. The statement also emphasizes transparency, alignment of funding and objectives, standards for tracking investments, and the need for innovative financing and coordinated reforms to strengthen MDB effectiveness and address long-term structural challenges.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages5

Reading Time13 min

The multilateral development system and recent shocks

Counter-cyclical financing and COVID-19 commitments

Financing gaps, debt build-up, and inflation impacts

Acceleration toward long-term development goals

Disparities, climate change, and vulnerable populations

Transparency and alignment of funding and objectives

TOSSD and measurement for SDG progress

Innovative financing and system strengthening

Capital adequacy frameworks and co-financing

OECD’s role in reform and coordination

Dialogue platforms and support to G7/G20 discussions

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors ofthe Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND EIGHTH MEETING MARRAKECH, MOROCCO – OCTOBER 12, 2023 DC/S/2023-0062 October 12, 2023 Statement by Mathias Cormann Secretary-General OECD Statement by Mathias Cormann Secretary-General OECD 108th Meeting of the Development Committee October 12, 2023 Marrakech, Morocco The role of multilateral development finance in responding to recent shocks and accelerating development progress 1. The multilateral development system continues to be a key source of stable financing for developing countries. It has demonstrated resilience to economic crises, often providing an essential counter-cyclical source of finance, especially for the most vulnerable countries. 2. Recent shocks have exacerbated global instability, hunger and extreme poverty. Among other challenges, they have contributed to a widening financing gap to achieve the Sustainable Development Goals (SDGs), rapid debt build-up in developing countries and surging global inflation, with detrimental effects on food and energy prices threatening the livelihoods ofthe most vulnerable populations.i 3. In responding to the COVID-19 pandemic, multilateral development banks and other multilateral organisations provided record financing to developing countries. In 2020, the concessional and non-concessional finance committed by multilateral development partners totalled USD 244.5 billion, marking a 37% increase from the previous year.ii Multilateral development banks (MDBs) accounted for over 75% of this financing, emphasising their pivotal role in development finance. OECD Development Assistance Committee (DAC) countries increasingly channel their Official Development Assistance (ODA) through the multilateral development system, with the share rising from 39% in 2015 to 45% in 2021.iii 4. As the international development system responds to these recent shocks, it will also need to remain focused and accelerate progress in pursuit of long-term development goals. Deepening economic and social disparities threaten to undermine equality of opportunity and social cohesion. Climate change will have a growing and disproportionate impact on the world’s most vulnerable if we do not accelerate mitigation and adaptation efforts. MDBs will play an important role in bridging the financing gap and addressing these long-term structural challenges, as recognised by the Bridgetown Initiative and echoed by world leaders at the 27th session of the Conference of the Parties of the UNFCCC, the 78th Session of the United Nations General Assembly, the G7 and the G20, and at the recent Paris Summit for a New Global Financing Pact. 5. Transparency, and a clear alignment of funding and objectives, will be important contributors to the effectiveness of MDBs. Funding for emerging priorities, in particular supporting global public goods such as health and climate action, will need to be complement financing for MDBs’ original mandates on poverty eradication and fostering shared prosperity. Transparent, standardised data on financing needs will facilitate progress tracking and better coordination. The Total Official Support for Sustainable Development (TOSSD) standard supports this objective, providing a unified statistical approach for measuring investments in achieving the Sustainable Development Goals, including ODA, support for international public goods, and private finance mobilised by official interventions. The International Forum on TOSSD, which will be set up in early 2024, will help stakeholders share experiences with measurement and data collection. 6. Strengthening the multilateral development system will also require drawing on new sources of financing, and ensuring the effectiveness of existing financing. Innovative finan

FAQs

What role does multilateral development finance play during recent global shocks?

It provides stable, counter-cyclical financing for developing countries, especially for the most vulnerable. The statement highlights its resilience during economic crises and its essential contribution in responding to instability, hunger, and extreme poverty.

How does the statement describe financing needs and progress tracking for SDGs?

It stresses transparency and clear alignment of funding and objectives. It points to the Total Official Support for Sustainable Development (TOSSD) standard as a unified statistical approach to measure investments toward the SDGs.

What reforms and new financing approaches are recommended to strengthen MDB effectiveness?

The statement calls for maximizing the effectiveness, development impact, transparency, and accountability of multilateral development finance. It highlights innovative financing mechanisms such as balance sheet optimization, equity-to-loan ratios, statutory lending limits, guarantees, and co-financing, alongside improved coordination among stakeholders.

Jul 19, 2026

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