Event highlights a joint effort to implement evidence-based programs and public policies with the potential to accelerate progress toward SDGs 1 and 2.

Leaders from major multilateral development banks met to celebrate the membership of International Financial Institutions (IFIs) in the Global Alliance Against Hunger and Poverty. This symbolic gathering was held at the invitation of Finance Minister Fernando Haddad during the fourth and final meeting of G20 Finance Ministers and Central Bank Governors under Brazil’s presidency, on Thursday, October 24, in Washington, D.C. Representatives from the African Development Bank (AfDB), Asian Infrastructure Investment Bank (AIIB), Development Bank of Latin America and the Caribbean (CAF), European Investment Bank (EIB), Inter-American Development Bank (IDB), International Fund for Agricultural Development (IFAD), International Monetary Fund (IMF), New Development Bank (NDB), and World Bank Group (WBG) were present.

The Global Alliance Against Hunger and Poverty is one of the cornerstone initiatives of Brazil’s G20 presidency, reflecting President Lula’s commitment to social causes both domestically and globally. “This gathering of leaders shows that we are building a solid financial foundation to support the mission of the Global Alliance,” said Minister Fernando Haddad.

In addition to countries and regional organizations like the African Union and the European Union, the Alliance can include non-state actors, such as civil society organizations, research institutes, philanthropies, and international organizations, including multilateral development funds and banks. The Alliance’s work will be structured around three pillars: national, financial, and knowledge, with banks and funds contributing primarily to the latter two.

The participation of banks and funds is essential due to their ability to provide concessional loans and grants and to coordinate resource mobilization and support country platforms. These resources are particularly important in a context of high debt and limited fiscal space in countries most vulnerable to food and nutrition insecurity and multidimensional poverty. Unlike countries that also donate resources directly, IFIs can multiply financing.

Multiplied Value

When a country donates or lends a dollar, that value is transferred; however, when a country contributes a dollar to an IFI, that amount can be multiplied by approximately four times. In this sense, the Global Alliance advocates for ambitious capital replenishments for IFIs and reforms to make them larger, more effective, and impactful. This is in line with the roadmap for multilateral development bank reforms approved by consensus yesterday, marking another important milestone for the G20 Finance Track.

The Global Alliance also encourages IFIs to develop innovative financial instruments to increase available resources for sustainable development investments and equitable transitions. In support of this effort, the Brazilian government is backing a new instrument designed by the IDB and AfDB, which can multiply deposits up to eight times. IDB President Ilan Goldfajn stated, “The IDB is proud to partner with the Global Alliance Against Poverty and Hunger. In collaboration with the African Development Bank, we have developed the Hybrid Capital SDR Instrument to empower nations to combat chronic hunger and extreme poverty without additional budgetary costs. Together, we can drive real change.”

AfDB President Akinwumi A. Adesina added, “The African Development Bank Group is proud to partner with Brazil’s G20 presidency and support the Global Alliance Against Hunger and Poverty. Together, we must act urgently and decisively to expand the fight against poverty, end hunger, and eradicate malnutrition. Our strength lies in consolidating our collaboration, mobilizing resources quickly and at scale, and directing them where they are needed most. The Special Drawing Rights Hybrid Capital Instrument is one of the solutions to achieve this goal.”

Beyond financing, IFIs contribute technical capacity to the Alliance’s Knowledge Pillar as institutions experienced in designing and implementing projects—valuable for countries executing these initiatives. This makes them crucial allies in achieving impactful actions capable of putting countries on the path to meeting Sustainable Development Goals 1 and 2 by 2030, the Alliance’s primary objective.

“Simply put: hunger and poverty are interconnected. We must tackle them and work tirelessly to eradicate them from our world. As part of our commitment to the Global Alliance and our partnership with Brazil, the World Bank Group will serve as the Alliance’s lead knowledge partner,” said Ajay Banga, President of the World Bank Group. “Knowledge is most impactful when combined with resources, which is why we are also making International Development Association (IDA) financing available to support countries’ policy choices from the Alliance’s policy basket. Our goal is to support half a billion people with social protection by the end of 2030. We are determined to deliver tangible results and see the Alliance as a critical milestone in this effort.”

For many countries, infrastructure-focused development policies and programs can be transformative. In this regard, NDB Vice President Anil Kishora stated, “By joining the Global Alliance, the NDB reinforces its commitment to sustainable development in its member countries, contributing to the achievement of the interconnected SDGs of Poverty Eradication and Zero Hunger.” AIIB President Jin Liqun also commented, “The AIIB is proud to be a central partner in this innovative initiative under Brazil’s G20 presidency. Building sustainable, inclusive, and resilient social, physical, and digital infrastructure is at the heart of the fight against global poverty and hunger.”

Regional Cooperation

Speaking on behalf of CAF, Vice President Antonio Silveira emphasized, “Membership reaffirms the bank’s commitment to sustainable development and regional cooperation. We are dedicated to mobilizing resources and expertise to promote impactful solutions aligned with the SDGs, especially those aimed at eradicating hunger and poverty.”

CAF was the first multilateral development bank to join the Global Alliance, which is not limited to G20 members, as demonstrated by IFAD, which has also completed its membership process. In a message to group leaders, IFAD President Alvaro Lario highlighted, “The world’s incredible progress in combating hunger and poverty over the past seven decades shows that a fairer world is possible with the right investments and political will. The Global Alliance has the potential to deliver both, and IFAD is committed to working with all members to address rural poverty, reduce inequalities, and catalyze investments, especially in rural communities where they are most needed.”

On the final day of negotiations held at the IMF headquarters, IMF Managing Director Kristalina Georgieva praised “Brazil’s leadership in placing the eradication of poverty and hunger at the center of the G20 agenda,” and noted that “the IMF contributes to these goals by supporting our members in promoting inclusive growth and strengthening economic resilience.”

Minister Haddad further emphasized that “financing international cooperation around the Alliance’s Policy Basket is a promising path forward” and that “today’s meeting signals our readiness to decisively advance on this path.” He concluded by saying, “We invite other financing agents, philanthropies, and multilateral development banks and funds to also join the Alliance.” In this spirit, EIB President Nadia Calviño celebrated the meeting: “Fighting poverty and hunger is at the heart of the multilateral development bank family’s mission. Together, we can go further and faster.”

Communication Advisory – MDS, with information from the Ministry of Finance