Washington, D.C., October 12, 2013—
Over 20 International Financial Institutions(IFIs) attending a meeting
hosted by IFC, a member of the World Bank Group, today pledged closer
collaboration to support private sector development.
“Finding solutions to the deepest development challenges, particularly
in fragile areas, is too great for one institution to tackle alone,” said
Jin-Yong Cai, IFC’s EVP and CEO. “It will require innovation and
partnership between the public and private sectors.”
The senior executives from multi-lateral and bi-lateral development institutions
held their yearly roundtable meeting on the sidelines of the 2013 Annual
Meetings of the World Bank Group and IMF. Highlights of the meeting include:
Agreement to make it easier for private sector companies that receive investment
from development institutions to provide development results data. Harmonization
of key indicators reduces the reporting burden on shared clients and facilitates
knowledge transfer among development institutions.
Support for a new global partnership to facilitate more and better private
sector jobs. ‘Let’s
Work’, coordinated by
IFC, is a new coalition to develop practical approaches to overcome obstacles
that prevent the private sector from creating jobs.
Endorsement of common guidelines for the use of concessional finance where
there are market failures and the potential development impact is high.
For the most part, development institutions offer financing on commercial
terms when investing in private sector projects. However, in some carefully
structured investments, concessional funds – for example from donor
partners – can catalyze investments in such areas as climate change and
food security that otherwise would not be possible.
Endorsement of strategic focus on domestic capital market development.
Recognizing that deep, liquid capital markets are essential for long-term
private sector development, IFIs are collaborating on specific initiatives
to develop domestic capital markets and increase local-currency finance
availability for the private sector. This includes possible coordination
on local-currency bond programs and on dialogue with regulators in developing
countries; as well as knowledge management and capacity building initiatives.
Over the past six years the Roundtable—which is the only high-level forum
for senior executives from both multilateral and bilateral development
institutions—has helped foster collaboration among IFIs in a number of
areas to better serve clients and enhance development impact.
“Sustaining and creating jobs, particularly for the youth, is our top
priority, both in Europe and outside,” said EIB Vice President Philippe
de Fontaine Vive. “Our experience in working with the private sector
enables us to develop new and innovative financing solutions tailored to
the specific needs of clients and that help addressing financing gaps caused
by the crisis. Working together, we need to improve our understanding
of what works best, in order to help the private sector make a real difference.”
“ADB is pleased to be part of initiatives by the international finance
institutions to support the private sector. It is established that the
private sector is a critical partner in driving growth and change for development
through improved technologies, better management and innovative solutions
for the underserved,” said Lakshmi Venkatachalam, Vice President, Private
Sector and Cofinancing Operations, Asian Development Bank.
"Private sector development is critical for growth and jobs and requires
an engagement that supports rather than crowds out market efforts,” said
Philip Bennett, First Vice President, EBRD. “For this reason the use of
subsidies and concessional finance needs to be limited to market failures,
carried out transparently and phased out over time.”
“Job creation and addressing social imbalances rank high on the social
agenda throughout Europe and we welcome today’s joint commitment by IFIs
to support our member countries in achieving these goals,” said Dr Rolf
Wenzel, Governor of the Council of Europe Development Bank (CEB). “As
a European Multi-lateral Development Bank with a social mandate, CEB will
continue to support employment by financing investments in particular of
MSMEs and in municipal infrastructure in its Member States.”
IFC, a member of the World Bank Group is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit