Switzerland's participation in multilateral development banks
Switzerland is a member of various multilateral development banks (MDBs) and global funds. It participates in the governing bodies and is represented by its own staff within these organisations.
Swiss representation on Boards of Governors and Directors
Switzerland shapes international cooperation through its active participation in the governing bodies of the MDBs. The Board of Governors, the highest authority in each MDB, decides on important political and strategic matters. The head of the Federal Department of Economic Affairs, Education and Research (EAER) acts as the Swiss Governor at the World Bank, the EBRD and the AIIB. At the regional MDBs, the EAER, with deputisation by the Department of Foreign Affairs (FDFA), appoints the governors at the lower level.
The second-highest body of each MDB is the Board of Directors. It is responsible for the bank’s financing, functioning and operational business. All member countries, except for the larger ones, are grouped into so-called constituencies. Each constituency is represented on the board by an Executive Director.
Swiss Executive Directors lead a constituency at both the World Bank and the EBRD which includes eight and seven other countries respectively. In the regional banks, Switzerland alternates with other members in leading a constituency.
Together with the Swiss Agency for Development and Cooperation (SDC), SECO coordinates Swiss positions on individual items of business within the Federal Administration. For selected agenda items, SECO also consults with external experts and partners.
Switzerland’s objectives in MDBs
Given Switzerland’s financial participation in MDBs and its co-financing of their development projects, it seeks to influence their institutional organisation and project implementation. It is committed to ensuring that MDBs:
- contribute significantly to poverty reduction and sustainable development in their member countries;
- focus on their core expertise;
- comply with international environmental and social standards;
- implement their activities efficiently and effectively;
- contribute to the implementation of the 2030 Agenda for Sustainable Development and the Paris Agreement;
- achieve, measure and evaluate results in order to learn lessons for the future from successes and failures;
- remain financially stable and
- systematically coordinate among themselves and with other development partners.
Switzerland also strengthens its presence in MDBs by supporting both young and experienced Swiss professionals interested in pursuing a career within these institutions. Additionally, it assists Swiss companies in participating in MDB tenders.