Published on 11 November 2024

The importance of multilateral development banks

Multilateral development banks (MDBs) play a key role in international cooperation. Switzerland has an interest in participating in their decision-making.

MDBs aim to reduce poverty and inequality and promote sustainable development. With their expertise and substantial financial resources, they possess effective tools to address these issues and tackle global challenges such as climate change.

Switzerland is committed to a robust multilateral system and actively contributes to its development. In addition to its involvement with MDBs, Switzerland also engages with various UN organisations and global funds.

Switzerland’s membership in MDBs is driven by the following objectives:

• Addressing Global Challenges

  Resources – MDBs, leveraging their expertise and vast financial resources have effective instruments to help solve global problems like climate change. Internationally coordinated responses are essential to overcome these challenges. MDBs are key to providing coordinated solutions within the framework of the 2030 Agenda for Sustainable Development and the Paris Agreement.

• Defending Swiss Interests

  Switzerland benefits in various ways from contributing to the MDBs, such as:

  • Actively Shaping International Cooperation – Given that Switzerland is not a member of the G-7, the G-20 or the EU, this participation allows Switzerland to engage in high-level discussions and strengthen its international relations.
  • Fostering Its Image – Switzerland enhances its reputation as an innovative and reliable country, willing to address the challenges and bear the risks of globalisation.
  • Promoting the Swiss Economy – Multilateral organisations procure a significant volume of goods and services from Swiss providers, thereby bolstering the domestic economy.

• Establishing International Standards

  MDBs play a crucial role in formulating internationally recognised standards. These are used, for example, to protect global public goods, such as water or the environment, or to support socially responsible economic growth. At the same time, they serve as guidelines when drafting national legislation.

• Implementing Effective and Coordinated Projects

  MDBs are indispensable partners for Switzerland’s international cooperation. Due to their size, expertise and political neutrality, they have privileged access to recipient countries. They maintain regular dialogue with governments and civil society and can push for structural reforms.

  Another strength of MDBs is their ability to combine comprehensive advisory services with the loans they grant. This improves the sustainability of project outcomes and fosters a sense of self responsibility among their clients.

• Complementing Bilateral Aid with Multilateral Cooperation

  Switzerland’s multilateral and bilateral cooperation efforts are complementary. Bilateral cooperation is flexible and is used for innovative in-country projects. Through multilateral cooperation, MDBs can replicate successful projects on a larger scale.

  Switzerland supports MDBs in selected projects, allowing it to have an impact beyond its priority countries. Additionally, the know-how and experience of other donors and the MDBs themselves feed back into Switzerland’s bilateral cooperation.

Further information

• SECO factsheets

  • Factsheet Access Financing For Projects In Developing Countries 2023 MDB WEMF Pdf

    PDF260.72 kB1 November 2023

• Links

  Career opportunities at the MDBs

  Tenders for goods and services