SECO Cooperation│Multilateral development banks

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

Switzerland is a member, i.e. shareholder, of the multilateral development banks for the following reasons:

Overcome global challenges

Resources – Based on their expertise and the vast financial means at their disposal, the MDBs have effective instruments to contribute to solving global problems such as climate change or food scarcity.

Coordination – Overcoming global challenges requires an internationally coordinated response. MDBs are central to implementing the objectives of international development and climate talks, such as the 2030 Agenda for Sustainable Development.

Defend Swiss interests

Switzerland gains in various respects from contributing to the MDBs:

Making Swiss concerns heard internationally – Given that Switzerland is not a member of the G-7, the G-20 or the EU, this is an opportunity for Switzerland to participate in high-level talks and develop its international relations.
Positive image – Switzerland reinforces its image as an innovative country willing to bear the costs and risks of globalisation.
Swiss economy – The multilateral organisations procure a considerable volume of goods and services from Swiss providers.

Establish 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 requirements.

Implement effective and coordinated projects

MDBs are irreplaceable partners for Switzerland’s international cooperation. Through their size, know-how 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 the MDBs is that they combine a complete advisory package with the loans they grant their customers. This improves the sustainability of project results and instils a sense of self-responsibility among their customers.

Multilateral cooperation complements bilateral aid

Switzerland’s multilateral and bilateral cooperation efforts are complementary. Bilateral cooperation is flexible, context-specific and can be used for innovative in-country projects. Through multilateral cooperation, MDBs can replicate such concepts in their projects on a larger scale and ensure that they are integrated into domestic policy.

Switzerland supports the MDBs in selected projects. As MDBs operate worldwide, Switzerland can have an impact beyond its priority countries. Also, the know-how and the experience of other donors and the MDBs themselves flow back into Switzerland’s bilateral cooperation.

Federal Councillor Guy Parmelin with David Malpass and Thomas Jordan. — Switzerland participates in the decision-making of the MDBs. Here, Federal Councillor Guy Parmelin with David Malpass (President of the World Bank Group) and Thomas Jordan (President of the Swiss National Bank) during President Malpass' visit to Switzerland in May 2022.

Switzerland’s objectives in the MDBs

As Switzerland contributes financially to the MDBs and co-finances their development projects, it has a say in their organisation and in how they implement their projects. In all MDBs, Switzerland is committed to ensuring that they:

make an important contribution to reducing poverty,
make all their activities development-relevant,
focus on their core competencies and the added value of their projects and adhere to international quality standards as well as environmental and social standards,
perform all activities efficiently,
pledge effective contributions for implementation of the internationally agreed climate and development goals,
measure their results reliably, and
remain financially stable.

Multilateral development banks establish a system of internationally recognised rules and make an important contribution to overcoming global challenges.

Furthermore, Switzerland aims to strengthen its presence in the MDBs:

Switzerland supports young as well as experienced Swiss professionals who are interested in career opportunities at the MDBs.
Swiss companies from the private sector have the possibility to participate in tenders issued by MDBs.

Through the Board of Governors, the supreme body of a MDB, Switzerland participates in key policy and strategic decisions such as negotiations on capital increases or the replenishment of concessional funds.

Switzerland oversees the day-to-day business through its membership of the Board of Directors. SECO coordinates Switzerland’s position on individual transactions within the Swiss Federal Administration. For selected themes, SECO also seeks dialogue with consultants and partners outside of government.