Post-2015 joint FfD and post-2015 session, 21-24 April -- No5: Discussion with International Financial Institutions

As reported in the Earth Negotiations Bulletin, the intergovernmental negotiations included a discussion with the International Financial Institutions. 

Mohamed Mohieldin, of the World Bank Group, discussed the paper jointly authored by the World Bank Group, the International Monetary Fund (IMF) and all of the regional development banks, on moving resources “from billions to trillions.”

As reported previously (See: World Bank/IMF Spring Meetings Address Climate Change, FfD and Post-2015 Development Agenda), at the World Bank/IMF Spring Meetings it was stressed that achieving the new development agenda will require huge financial resources in the trillions of dollars. , and that the private sector must play a role in financing.  Mohieldin said the needed trillions for implementing the SDGs must comprise “more than money,” that will be found in investments, public and private, national and global, and capital and capacity. He stressed the potential in private sector business, finance and investment, as well as the current substantial spending in public resources at the national level. The World Bank will need the guidance of Member States on debt, trade and technology transfer, in addition to finance. In addition the Bank’s internal efforts, including improving the financial system and a review of developing countries’ shareholding, voices, and participation.

Sean Nolan, IMF, emphasized that the Fund saw contributing to the post-2015 development agenda and FfD3 among its central priorities. In discussing important policy issues at the national level, Nolan referred specifically to creating a resilient macroeconomic policy framework; boosting domestic revenue mobilization; tackling infrastructure gap and ‘getting it right’; facilitating financial sector development; and making effective use of foreign capital. He added that the SDGs are not just about growth, but also emphasize promoting inclusion and maintaining a sustainable environment. At the global level, he stressed the importance of creating an enabling environment through ensuring global economic and financial resilience; tilting ODA towards poorer and/or fragile states; reinvigorating the international trade reform agenda; cooperating on international tax issues; and strengthening the framework for sovereign debt.

Questions raised by delegates during the discussion referred to ways in which ODA could be better leveraged; ways in which the World Bank and IMF could support DRM; and ways in which the two institutions are addressing the particular circumstances of countries in special situations.

Mohieldin and Nolan gave details of projects that they support for countries in special situations and indicated they are ready to report on the progress made through their institutional structures. Nolan said that the IMF sees development and environment issues as interlinked. The World Bank stressed the need for all the sources of financing, incentive structures that are effective, and to include emerging players, such as private foundations.

In summing up the discussion, Co-Facilitator Kamau stressed the need to “ring fence” on social protection floors, health, education, and inequalities, which delegates see as priorities. He added that further conversations might also be organized with representatives of the World Trade Organization and the International Telecommunications Union on trade and information and communications technologies (ICTs).

For further information see: http://www.iisd.ca/vol32/enb3217e.html