José de Luna Martínez Senior Financial Economist The World Bank ADFIAP’s 35 th Annual Meeting Istanbul, Turkey, April 25-27, 2012

Together, BRICS account for:  One third of the world’s population  One fifth of global GDP In the future, BRICS are expected to be:  Increasing source of global economic growth  Growing geopolitical actor

Source: World Bank

High-income countriesDeveloping countries

6,906 9, ,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10, Rural PopulationUrban Population Number of Persons (million) Source: UN

+ Demographic changes ‣ Increased longevity, affecting health costs, pensions, savings; shrinking workforces ‣ China: by 2035, 25% of the population (350M) will be seniors ‣ Japan, Russia, and EU: population is shrinking ‣ SSA: growing. By 2050 population will double = 20% of world population ‣ Middle East – youth bulge and bust + Urbanization ‣ By 2020, 80 of the world’s 100 largest cities in developing countries + Demand for commodities ‣ China consumes half the world’s cement; half the world’s pigs; almost half the world’s iron ore and steel; over 40% of the world’s aluminum, zinc, and lead; a third of the world’s soybeans and eggs ‣ China’s demand will eventually ease – but India, and others, will be next

Agriculture Infrastructure International trade Industry Housing Tourism Agriculture Infrastructure International trade Industry Housing Tourism Promote economic development Loans Guarantees Advisory services Technical assistance Households SMEs Local governments Large corporations Financial institutions InstrumentsSectorsClients

Loan Portfolio of DFIs (per trillion $U.S.) DFIs’ Loan Portfolio Growth By Region ( ) Region% Asia 72% Americas 70% Africa 60% Europe 12% 36% WB Survey on DFIs revealed there is room for improvement: Corporate governance Risk management Monitoring and evaluation framework Profitability and financial sustainability of DFIs

Thank You!