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What is one of the primary challenges facing Multilateral Development Banks (MDBs) in fulfilling their global development role?
  • a)
    Excessive legal frameworks that promote rapid lending
  • b)
    High levels of private sector engagement
  • c)
    Outdated legal and institutional frameworks
  • d)
    Overwhelming support for local currency lending
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is one of the primary challenges facing Multilateral Development ...
The primary challenge facing MDBs is their outdated legal and institutional frameworks. These frameworks were established post-World War II and do not adequately address the complexities of the modern digital era. They fail to reflect the current needs and aspirations of developing nations, particularly those in the Global South. This disconnect makes it difficult for MDBs to effectively mobilize resources and support sustainable development goals. An interesting fact is that MDBs are critical in supporting low and middle-income countries, yet the need for reform is increasingly urgent as global challenges evolve.
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What is one of the primary challenges facing Multilateral Development Banks (MDBs) in fulfilling their global development role?a) Excessive legal frameworks that promote rapid lendingb) High levels of private sector engagementc) Outdated legal and institutional frameworksd) Overwhelming support for local currency lendingCorrect answer is option 'C'. Can you explain this answer?
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