1818 Society Oxfordshire, United Kingdom

1. 2030: The Development
Agenda
24th of March, 2017
World Bank Group Senior Vice-President,
Dr. Mahmoud Mohieldin
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2. GLOBAL DEVELOPMENT CHALLENGES
INFRASTRUCTURE
1.2 billion people
lack access to electricity
FRAGILITY
65 million people
forcibly displaced
globally;
46% of the global
poor will be in fragile
& conflict situations
by 2030
HEALTH & EDUCATION
400 million people
do not have access
to essential health services.
121 million children are not in
school
CLIMATE CHANGE
26 million people
are pushed into poverty
each year due to extreme
weather
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3. THE NEEDS EXCEED DOMESTIC RESSOURCES
BETWEEN NOW AND 2030
DEVELOPING COUNTRIES
NEED AN ANNUAL
INVESTMENT OF UP TO:
$690
BILLION
POWER
FOR CLIMATE CHANGE
MITIGATION &
ADAPTATION
$780
BILLION
TRANSPORT
TELECOM
$240
BILLION
$470
BILLION
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4. A LARGE POOL OF
PRIVATE CAPITAL
IS YET TO BE
CATALIZED
WITH JUDICIOUS USE OF
SCARCE PUBLIC
AND CONCESSIONAL
RESOURCES
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5. THREE PRIORITIES:
“What the WBG should do”
WBG GOALS:
Eradicating Extreme Poverty and Shared Prosperity
in a sustainable manner
New sources of
Private Capital /
Mainstreaming joint
WBG solutions/
Domestic resource
mobilization / Existing
and new partnerships
MOBILIZATION FOR
DEVELOPMENT
HUMAN CAPITAL
FORWARD LOOK:
“How should the WBG do it”
SUSTAINABLE AND INCLUSIVE
GROWTH
CORPORATE
PROCESSES
& DECISION
MAKING:
“W”
&
GBR IMPROVING BUSINESS
MODEL
Knowledge action plan/
Agile pilots/ Shared
services/
Simplification/ People’s
strategy/ Values/
Incentives for
collaboration
RESILIENCE
SERVING ALL
CLIENTS
LEADING GLOBAL
AGENDA
Creating markets
(IFC/MIGA/ICSID)/
Implementing
IDA18/ Aligning
IBRD lending with
priorities
Implementing
climate action
plan/ Enhancing
crisis response
approach
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6. IDA18 RECORD MOBILIZATION : $75B PACKAGE
• Core IDA resources to FCV to reach $14B in IDA18
• Grants (resulting in increase in IDA’s concessionality to 58% in IDA18)
• Introduces refugee sub-window of $2B and risk mitigation regime
• Establishes a $2.5B IFC-MIGA Private Sector Window
• Enables smooth transition for IDA18 graduates
• Introduces new ambitious policy commitments
(46 policy commitments, compared to 30 in IDA17)
• Scales up Regional Window: to $7B
• Scales up support to crisis (CRW $3B; CAT-DDO introduced for IDA
countries)
• Enables access to a larger non-concessional Scale Up Facility of $6.2B
DOUBLES
NEW
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7. Joining forces with leading
multinational companies
to promote private sector
investment in newly
independent countries
in the developing world,
starting with Siemens in 1957
IFC 1.0 IFC 2.0
Ramping up
our efforts
to mobilize
third-party
capital
Decentralizing
to bring staff
closer to clients
in developing
countries
Expanding
into
advisory
services
IFC THROUGHOUT HISTORY: ADAPTING TO
EMERGING MARKETS
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8. Creating markets in places
where private capital has
been reluctant to go—by
mobilizing new investors
Leveraging
concessional
resources to
mitigate risk
Encouraging
regulatory reform
and galvanizing
support for a new
aid architecture
IFC 3.0
THE NEXT PHASE OF IFC HISTORY
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9. THE CASCADE APPROACH
PUBLIC & CONCESSIONAL FINANCING,
INCLUDING SUB-SOVEREIGN
• Public finance (incl. national development banks and domestic
SWF)
• MDBs and DFIs
COMMERCIAL
FINANCING
PUBLIC AND CONCESSIONAL
RESOURCES FOR RISK INSTRUMENTS
& CREDIT ENHANCEMENTS
• Guarantees
• First Loss
UPSTREAM REFORMS
& MARKET FAILURES
• Country and Sector Policies
• Regulations and Pricing
• Institutions and Capacity
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Can commercial financing be cost-effectively
mobilized for sustainable investment?
If not…
Can upstream reforms be put in
place to address market failures?
If not…
Can risk instruments & credit
enhancements cost-effectively
cover remaining risks?
If not…
Can development
objectives be resolved with
scarce public financing?
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10. SDG Everyone: EQUITY - INDEX LINKED BONDS
• Bonds that for the first time directly
link returns to the performance of
companies advancing global
development priorities set out in the
2030 Agenda
• The equity-index linked bonds raised
a total of EUR163 million from
institutional investors in France and
Italy
• World Bank Group Treasury
anticipates coming to market with
similar issuances that would attract a
range of investors across the world
Sources: World Bank Group Treasury, Press Release from 03/09/2017
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11. ONE
POLICY DIALOGUE IDENTIFICATION OF
OPPORTUNITIES
DE-RISKING VIA LONG-
TERM INSURANCE
FINANCIAL ENGINEERING
& TRANSACTIONS
CREDIT ENHANCEMENT
MOBILIZATION OF PRIVATE
CAPITAL
DAMAGE PREVENTION
ANALYTICAL DEPTH
KNOWLEDGE BASE
CONVENING POWER
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12. A BETTER, STRONGER WORLD BANK GROUP
Accountability
Strong
results focus
Convening power
Financing
Public &
private sector
Knowledge
Global reach
Country-led Partnership
Continuous
learning
THREE DIMENSIONS
OF ENGAGEMENT
THREE DIMENSIONS
OF LEVERAGE
IMPROVED OPERATING MODEL TO HELP ACHIEVE 2030 AGENDA
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14. Thank You
Last updated:
March 22, 2017
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