The Option for Graduation: Rethinking Romania’s Role in Bretton Woods Multilateral Development Banks

This paper argues that Romania should adopt a differentiated and nuanced strategy in its participation in Multilateral and Regional Development Banks. Transitioning from Part Two to Part One status is a viable option that warrants evaluation on a case-by-case basis. Romania’s membership in the Bretton Woods multilateral development banks (MDBs) is particularly significant, as Part Two status has become largely obsolete for its profile, offering limited opportunities, while the benefits available exclusively to Part One countries remain underexplored. In this context, maintaining the status quo reflects inertia rather than strategic intent. The analysis draws on long-term monitoring and builds upon the conclusions of an earlier policy research paper (Doltu, 2018). The evidence suggests that Romania has reached a point where a reassessment of its approach to membership in MDBs and Regional Development Banks is both timely and necessary. Romania’s high level of income and access to international capital markets raise questions about its continued need to draw on International Bank for Reconstruction and Development (IBRD) financial resources. 2 Even when applying a more cautious perspective, such as Rodrik’s (1999) argument for carefully assessing institutional development to ensure it can sustain future growth and avoid setbacks that might necessitate renewed reliance on the Bank’s financing, Romania appears ready to move forward. Over the past two decades, the country has undergone substantial transformation. EU membership has led to stronger political freedoms, improved public institutions and judiciary, enhanced anti-corruption efforts, and more transparent policymaking3. (EU Commission, 2023) In this new context, the country’s participation in MDBs can—and should—evolve. It is now both timely and feasible to move beyond a limited focus on borrowing toward a more active role that includes participation in international development projects, strategic partnerships with financial institutions, and contributions to global initiatives. This shift holds the potential to deliver tangible benefits, including stronger economic growth, improved infrastructure, and expanded opportunities for social development. While Romania holds only a minor share in MDBs cannot be expected to exert any substantial influence over their governance or strategic direction. However, it can still find new ways to leverage its membership.