Financing for Development Office Rethinking The Role of National Development Banks Ad Hoc Expert Group Meeting (New York, 1-2 December 2005)

Financing for Development Office IssuesNext Steps Overview

Financing for Development Office Ad Hoc Expert Group Meeting 1.Description Will address issues contained in the Monterrey Consensus : See Background Document, p.5 2.Purpose Enhance the role of National Development Banks (NDBs) in promoting economic and social development. 1.Description Will address issues contained in the Monterrey Consensus : See Background Document, p.5 2.Purpose Enhance the role of National Development Banks (NDBs) in promoting economic and social development.

Financing for Development Office Ad Hoc Expert Group Meeting 3.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 4.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. 3.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 4.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.

Financing for Development Office Overview Issues Next Steps

Financing for Development Office Definitions Many definitions for NDBs since “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 long- term capital finance to projects generating positive externalities and hence underfinanced by private creditors” (Panizza 2004). Many definitions for NDBs since “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 long- term capital finance to projects generating positive externalities and hence underfinanced by private creditors” (Panizza 2004).

Financing for Development Office GovernanceManagementSustainabilityRegulation & Supervision Major Lines of Activity Desired Outcome Achieve development objectives Exports promotion Financing of Infrastructure Productive sector support Requirements National Development Banking Pyramid Actions (Five A’s) Appraise Accompany Attract Assist Alleviate

Financing for Development Office The Five A’s of National Development Banking See Background Document p.16

Financing for Development Office Possible Areas of Focus Impact on Growth / Feasibility Specific issues 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 Possible themes

Financing for Development Office Overview Issues Next Steps

Financing for Development Office Today Pres entat ions by Expe rts Gene rate discu ssion Identif y key issue s to be addre ssed by future consu ltation s Agree on Themes and Organization Sessions II to VI: Analysis Session VII: Next Steps

Financing for Development Office Group MeetingConsultationsOutput and Follow-upSustainability Substantive Tasks Logistics January 2006 January 2007 September 2007 December 2005 Broad Sequencing (Example) Group Meeting 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 1 ConsultationsOutput and Follow-upSustainability 234

Financing for Development Office