Multilateral development banks (MDBs) have procured significant funding for a wide range of social and infrastructure needs throughout the last 60 years. The MDB’s adaptability is in part due to its ability to work with both the public and private sectors, leveraging risk and consolidating expertise. Given their effectiveness and flexibility, the MDB model is well-suited to help tackle some of the enormous challenges confronting the Arctic, including promotion of responsible resource development, safe Arctic shipping and sustainable circumpolar communities. This paper reviews the evolution of the MDB model, and discusses the possible establishment of an “Arctic Development Bank” that could raise significant new funding and advance environmentally sustainable development in the Arctic region.
