Banking on Development (Geneva, 28-29 February 2008)
The Public-Private Roundtable brought together senior executives from developing countries, the financial services industry and official donor agencies – bilateral and multilateral – to discuss innovations in mobilising private development finance.
The Roundtable was a meeting point of the OECD Global Forum on Development and the World Economic Forum’s Financing for Development Initiative, both aiming to generate recommendations for more effective development finance ahead of the UN Follow-up Conference on Financing for Development (Doha, 29 November - 2 December 2008).
Participants discussed the best use for the underutilised capital of multilateral development banks, with several arguing that it could be channelled readily into leveraging more private investment. In this regard, participants discussed the merits of risk mitigation or, perhaps more accurately termed, risk "transfer" from the private to the public sector. Participants also highlighted the need to build capacity for a better functioning and well-regulated financial services sector in developing countries. They drew attention to innovative financing mechanisms, including mechanisms that hedge local currency costs and outsource the identification of "bankable" projects to the private sector. With an estimated $2bn per annum spent on such initiatives in 2001-2003, there remained ample room to scale up such initiatives.
A short report of the event will be available soon. In the meantime, please follow the links below to presentations and background reading:
Banking on Development, by Javier Santiso, OECD Development Centre
Building on the Monterrey Consensus, World Economic Forum Financing for Development Initiative
The event was supported by the Swiss Agency for Development Cooperation and the Andean Development Corporation, and was hosted by the Graduate Institute of International and Development Studies.