Financing the building of bridges, power stations and other infrastructure is an essential component of the mandate of multilateral development banks. International financial institutions (IFIs) play a crucial role in global development. Their influence is not only based on their lending; their expertise matters too. Moreover, they serve as forums for intergovernmental exchange. Currently, the dominance of the established IFIs is being challenged by new ones which have been launched and promoted by emerging-market governments. Whether the old and new agencies will cooperate closely or become fierce competitors remains to be seen. In view of looming financial crises in many commodity-exporting countries, the effectiveness of all IFIs is likely to be tested soon. In the longer role, moreover, the new Green Climate Fund will prove to have considerable clout.
