Ad Hoc Expert Group Meeting
(New York, 1-2 December 2005)
Rethinking The Role of
National Development Banks
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Overview
Issues
Next Steps
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Ad Hoc Expert Group Meeting
1.
Description
Will address issues contained in the Monterrey Consensus :
A: Mobilizing domestic financial resources for development
“We recognize the need to strengthen and develop the domestic financial sector, by encouraging the
orderly development of capital markets through sound banking systems and other institutional
arrangements aimed at addressing development financing needs” [para.17] (…) “Development
banks, commercial and other financial institutions, whether independently or in cooperation, can be
effective instruments for facilitating access to finance [to micro enterprises and SMEs]” [para. 18]
B: Mobilizing international resources for development
“We will support new public/private sector financing mechanisms, both debt and equity, for
developing countries and countries with economies in transition, to benefit in particular small
entrepreneurs and small and medium-size enterprise and infrastructure” [para. 24]
F: Addressing systemic issues
“We also underscore our commitment to sound domestic financial sectors, which make a vital
contribution to national development efforts, as an important component of an international financial
architecture that is supportive of development” [para. 53].
See Background Document, p.5
2.
Purpose
Enhance the role of National Development Banks (NDBs) in
promoting economic and social development.
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Ad Hoc Expert Group Meeting
3.
4.
Desired Outcome:
•
Advance on research project for “Multi-stakeholder
consultations on Rethinking the Role of National
Development Banks”: themes, organization
•
Ultimately produce document on “Enhancing the role of
National Development Banks” to serve as input to the
General Assembly
Partners and Participants: Governments, Aid Agencies and
selected National Development Banks, the World Bank, Regional
and Sub-Regional Development Banks, institutions that gather
together National Development Banks, Regional Commissions of
the U.N., the Private Sector and Civil Society.
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Overview
Issues
Next Steps
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Definitions
1.
Many definitions for NDBs since 1945
“An institution to promote and finance enterprise in the private
sector” (Diamond, 1957),
2.
“A financial intermediary supplying long-term funds to bankable
economic development projects and providing related services”
(Kane, 1975)
3.
“Institutions public or private which have as one of their
principal functions the making of medium or long term industrial
projects” (Boskey, 1959).
4.
“Financial institutions primarily concerned with offering longterm capital finance to projects generating positive externalities
and hence underfinanced by private creditors” (Panizza 2004).
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National Development Banking Pyramid
Achieve
development
objectives
Actions
(Five A’s)
Appraise
Accompany
Attract
Assist
Alleviate
Desired Outcome
Financing
Exports Productive
of
promotion sector
support
Infrastructure
Governance
Management
Sustainability
Major Lines of Activity
Regulation &
Supervision
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Requirements
The Five A’s of National Development Banking
See Background Document p.16
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Possible Areas of Focus
Impact on Growth / Feasibility
Specific issues
Possible themes
Long term Financing
Capital Market Development
Promotion of Public – Private Projects
SME Support
Technical Assistance
Risk mitigation
Countercyclical financing
Horizontal
Governance
Organization and management
Training and Expertise
Best practices
Vertical
Common or Particular Strategies
Cooperative Processes
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Overview
Issues
Next Steps
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Today
Sessions II to VI: Analysis
Pres
entat
ions
by
Expe
rts
Gene
rate
discu
ssion
Session VII: Next Steps
Agree on Themes and Organization
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Identif
y key
issue
s to
be
addre
ssed
by
future
consu
ltation
s
Broad Sequencing (Example)
December 2005
January 2006
1
January 2007
2
Group Meeting
Meeting
Group
September 2007
3
Consultations
4
Output and Follow-up
Sustainability
Logistics
Substantive Tasks
• Narrow down themes for issues of long term financing, private sector resources, capacity building
• Identify some of the priority questions to address
• Seek partners from relevant institutions and establish communication and partnership
• Suggest required research and solicit papers by academics and practitioners
• Plan research project’s suggested consultations for 2006, according to selected themes or to regional preferences
• Advance on possible funding and on organizational support to establish a provisional agenda
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www.un.org/esa/ndb.htm
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