Opinion Pieces Discuss Role Of Development Banks, Need For Finance Reform To Achieve SDGs

Devex: Opinion: Development requires a new type of project. Here’s what it looks like.
Bandar M. H. Hajjar, president of the Islamic Development Bank

“If we are ever going to tackle the current funding gap and achieve the Sustainable Development Goals, we must rethink how we finance development. … The biggest potential driver of short- and long-term development is the private sector, and as president of the Islamic Development Bank, I am advocating for a paradigm shift in the development community — one that places utmost importance on the value of unlocking private finance. … We should … look to the private sector, where efficiencies and economies of scale are made, and transfer this knowledge and expertise to the public sector, in particular to global infrastructure projects in our member countries. … [Public-private partnership (PPP)] financing enables competitive advantage, higher quality, and efficiency. Importantly, it reduces the burden on state budgets to complete investment-intensive development and infrastructure projects, optimizing the distribution of risks between the two sectors. At the Islamic Development Bank, we urge international governments to enhance private sector inclusiveness to support revenue-based infrastructure through PPPs. This will be critical in the future to maximize development impact” (2/27).

Devex: Opinion: Multilateral development banks need reforming. Here’s how.
Takehiko Nakao, president of the Asian Development Bank (ADB) and chair of ADB’s board of directors

“There has been much discussion recently about the value of multilateralism. I am a strong believer that the multilateral system, which includes [multilateral development banks (MDBs)], plays many important roles to support the global community. The multilateral system does not conflict with the national agenda. At its root, it relies on the coordination and support of national governments and their taxpayers. … For MDBs to effectively pursue their missions, they must continue to reinvent and reform themselves. Since the ‘Making the Global Financial System Work for All’ report by the G20 Eminent Persons Group on Global Financial Governance was published last October, there has been renewed interest in how to reform MDBs. I would like to share my thoughts on three important areas mentioned in the EPG report. First is collaboration among MDBs. … Strong collaboration is key to achieving greater development impact. … Second is a stronger focus on mobilizing private sector resources. … The third element of MDB reform is that … MDB governance itself needs to be brought up to date, reflecting the complexity of MDB strategic challenges and the needed shift in business models. … National interests and multilateralism go hand in hand because, in the longer run, we need international cooperation and collective actions for the interests of people in all nation states. By reforming MDBs, we will continue to contribute to the improvement of people’s lives in the global community” (2/27).