Why does Canada invest in multilateral development banks?
Helping build a better future around the world
Building roads, expanding clean water services, or improving electricity systems can cost a lot of money. Many countries cannot afford these investments on their own.
That’s where multilateral development banks (MDBs) come in.
MDBs are international organizations that provide financing, advice, and support for projects that help people and communities in developing countries thrive. They invest in things people use every day, from schools and hospitals to renewable energy and transportation.
They also help stretch Canada’s investment further. For every dollar Canada contributes, MDBs can provide up to $5 in financing to developing countries.
Canada partners with the following MDBs:
- World Bank Group
- African Development Bank
- Asian Development Bank
- Inter-American Development Bank
- Caribbean Development Bank
- European Bank for Reconstruction and Development
These banks provide loans to help countries finance long-term projects that can improve lives and create opportunities for future generations.
What do MDBs actually do?
Imagine that a growing city needs a new water treatment plant, but the project costs hundreds of millions of dollars.
MDBs can provide financing and expert advice to make the project happen. The result is cleaner water, better health, and new jobs.
MDBs support many kinds of projects, including:
- clean water and sanitation systems;
- schools and health care facilities;
- roads, bridges and public transportation;
- renewable energy projects;
- agriculture and food security programs;
- climate adaptation and disaster resilience efforts.
These investments help make communities safer, healthier, and stronger.
What is Canada’s role?
Canada is a shareholder and partner in several MDBs. This means Canada helps fund the banks and has a voice in how they operate.
Canada’s investments help MDBs provide financing to countries for projects that improve infrastructure, strengthen public services and create economic opportunities.
Canada also works with these institutions to support priorities such as:
- sustainable economic growth;
- gender equality;
- climate action;
- good governance;
- private-sector development.
By working with MDBs, Canada can support more projects and reach more people than it could on its own.
How does this benefit Canadians?
At first glance, projects in other parts of the world may seem far removed from life in Canada. But a safer, healthier and more stable world benefits everyone.
When people are healthy and communities have reliable roads, electricity and other basic services, businesses have a better chance to grow, create jobs and do business with other countries.
That can create opportunities for Canadian businesses that provide expertise, technology, goods and services.
For example, MDBs may help finance a renewable energy project, transportation system, or digital infrastructure. Canadian companies may compete for contracts, share expertise or form partnerships that support these projects.
This is sometimes where development and trade come together. These investments help communities grow while also creating opportunities for trade and business.
Building partnerships for a connected world
Today’s challenges do not stop at borders. Climate change, food security, economic growth, and public health are important to countries around the world.
MDBs help countries work together to address these challenges. They bring together funding, expertise, and long-term solutions.
Through its partnership with MDBs, Canada is helping communities build stronger economies and brighter futures. At the same time, these investments strengthen international partnerships and create opportunities for trade, innovation, and mutual growth.
Development and economic growth go hand in hand. By investing in MDBs, Canada helps create the foundations for both.
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