The World Bank has sought an improved capital base in addition to its mandate to eradicate poverty in order to meet the requirements of climate challenge and pandemic combat measures. According to a shareholder consultation paper, the executive directors of the World Bank Group (WBG) have suggested an improved formulation for the organization's mission: to promote development that is long-lasting, resilient, and inclusive in order to reduce extreme poverty and increase prosperity for all. According to the paper, despite continuing to support efforts to achieve sustainable development goals, climate change, pandemics and health security, fragility and conflict, are now more prominent global issues.
The poorer nations are concerned about the formulation because they worry that resources might be diverted toward green finance at the expense of fighting poverty. Public and private spending on climate change, conflict, and pandemics is estimated to total $2.4 trillion annually. While new markers are proposed to catch the "upgraded mission", satisfying funding needs for this apparently is basic.
According to the paper, some of the money could be obtained through balance sheet optimization, such as altering the equity-to-loan ratio for the International Bank for Reconstruction and Development (IBRD) and utilizing hybrid capital. Additionally, up to $50 billion in additional capacity could be created over the course of ten years.
According to the World Bank Group's evolution document, "A capital increase - with due consideration for sequencing - remains the most powerful mechanism for increasing IBRD's financing capacity, with each $1 of paid-in capital enabling $10 of additional lending over a 10-year period."