This presentation provides the highlights of a paper co-published by the Multilateral Development Banks and IMF ahead of the Addis Ababa Conference on Financing for Development (2015). I prepared the presentation as my Final Project in the Financing for Development Massive Open Online Course conducted by the World Bank Group in November-December 2015 (on Coursera).

1. from
Billions
to
Trillions
The
role
of
the
Mul1lateral
Development
Banks
and
Interna1onal
Monetary
Fund
in
FINANCING
DEVELOPMENT
•
This
is
my
personal
summary
of
From
Billions
to
Trillions,
an
MDB
posi1on
paper
prepared
for
the
2015
Addis
Ababa
Conference
on
Financing
for
Development
•
It
was
prepared
for
the
Financing
for
Development
Massive
Open
Online
Course,
conducted
by
the
World
Bank
in
November-­‐December
2015

2. A
Common
Vision

3. $$
Financial
support
Technical
assistance
Policy
advice
$$$$$
COOL
FACTS
•
each
$1
from
shareholders
brings
$2-­‐5
in
MDB
commitments
•
this
adds
$40-­‐100
billion
each
year
•
over
15
years,
MDB
support
went
up
from
$50
to
127
bn
per
year
What
we
want

4. The
pledge
Mul1lateral
Development
Banks
plan
to
provide
at
least
US$
400
billion
in
financial
support
from
2016-­‐2018

5. The
four-­‐point
agenda
Financing
development
Increase
MDB’s
available
resources
Maximise
domes1c
resources
Improve
investment
climates
Crowding
in
the
private
sector

6. A.
Increase
available
resources
SOME
INNOVATIVE
APPROACHES
•
“Exposure
exchange
agreements”:
MDBs
can
share
risk,
allowing
individual
clients
to
borrow
more
•
MDBs
can
“leverage”
their
concessional
finance
windows
to
provide
more
non-­‐concessional
loans
to
clients
•
MDBs
are
merging
their
concessional
and
non-­‐concessional
windows
to
increase
the
resource
base
•
New
MDB
vehicles
are
allowing
ins1tu1onal
investors
like
pension
funds
to
par1cipate
in
investments
•
The
IMF
has
changed
rules
to
allow
low-­‐income
countries
and
countries
hit
by
disaster
to
access
its
loans

7. B.
Maximise
domes1c
resources
EXPERT
SUPPORT
FOR
BETTER
POLICIES
AND
SYSTEMS
•
MDBs
can
advise
clients
on
raising
more
tax
revenues
and
improving
the
quality
of
public
spending
•
MDBs
are
suppor1ng
sub-­‐regional,
regional
and
global
policy
networks
and
peer
learning
•
A
new
IMF-­‐World
Bank
Group
partnership
on
tax
diagnos1cs
•
The
African
Development
Bank
is
scaling
up
budget
support
for
domes1c
resource
mobiliza1on
and
public
financial
management

8. C.
Improve
investment
climates
BETTER
ADVICE
TO
ATTRACT
INVESTMENT
AND
FINANCE
•
Advising
governments
on
the
policies
and
regulatory
frameworks
•
EBRD:
a
new
Investment
Climate
and
Governance
Ini1a1ve
•
IADB:
an
Ins1tu1onal
Capacity
Strengthening
Fund
•
Strengthening
local
financial
and
capital
markets
•
Deepening
domes1c
bond
markets
•
Expanding
local
banking
services
•
Encouraging
lending
to
underserved
parts
of
the
economy

9. D.
Crowding
in
the
private
sector
STRONGER
PUBLIC
PRIVATE
PARTNERSHIPS
•
“Syndica1ons”
and
“pooled
funding”
a`ract
private
co-­‐financing
•
In
high-­‐risk
environments,
MDBs
help
mi1gate
risks
and
demonstrate
opportuni1es
for
the
private
sector
•
MDBs
are
suppor1ng
new
ini1a1ves
aim
to
build
up
“pipelines”
of
viable
projects
for
private
investment:
•
G20
Global
Infrastructure
Hub
•
Infrastructure
forum
proposed
in
the
2015
Addis
Ababa
Ac1on
Agenda
•
World
Bank:
Global
Infrastructure
Facility
•
Inter-­‐American
Development
Bank:
InfraFund
•
African
Development
Bank:
NEPAD
Infrastructure
PPF
&
Africa50
Ini1a1ve
•
European
Investment
Bank:
Arab
Financing
Facility
Technical
Assistance
Fund
•
European
bank
for
Reconstruc1on
and
Development:
Infrastructure
PPF
•
Asian
Development
Bank:
Asia
Pacific
PPF
COOL
FACTS
•
over
15
years,
MDB
private
investments
have
increased
fourfold

10. One
last
thing….
Sustainable
development
means
protec3ng
our
planet
 In
2013,
MDBs
commi`ed
more
than
USD
28
billion
for
climate
ac1on
 Over
four
years,
they
have
commi`ed
USD
100
billion
 MDBs
implement
projects
of
the
Global
Environmental
Facility
and
new
Green
Climate
Fund
 They’re
partners
in
the
Sustainable
Energy
for
All
Ini1a1ve