Wednesday, June 21, 2023

Building a new consensus for a more inclusive international financial system

22 - 23 June 2023. Building a new consensus for a more inclusive international financial system

The world is currently facing the most difficult conditions in decades. As a result of the COVID-19 crisis, public debt has reached unprecedented levels in all countries, with one-third of developing countries and two-thirds of low-income countries at high risk of debt distress. Inflation has risen sharply, and tighter monetary policy is creating financial volatility and reducing risk appetite. The global trend of poverty reduction observed over several decades has been interrupted or even reversed, leading to widening global economic gaps. We need to move forward with solidarity and ambition if we are to achieve the SDGs, carbon neutrality and our common biodiversity protection goals.

The summit will be co-hosted by the Indian G20 presidency and will aim to “build a new contract with the East & west and initiate a dialogue on some of the most pressing global issue - climate and development challenges.

The summit builds on the recommendations of the Bridgetown agenda to reform the international financial system, proposed by Mia Mottley, the Prime Minister of Barbados, and will aim to initiate a dialogue on some of the most pressing global issues, including climate change, loss of biodiversity and related climate and development challenges.

United Nations, Inter-agency Task Force on Financing for Development (2023), Financing for Sustainable Development Report 2023:Financing Sustainable Transformations. # 184 p.

According to this report, 52 low- and middle-income developing economies are either in debt distress or at high risk of debt distress, accounting for more than 40% of the world’s poorest people.

Several world leaders, including leaders from small island nations and developing countries – those on the climate frontlines – have been calling for a complete overhaul of the international financial system. The plan would make it easier for countries in the Caribbean, Latin America, Africa and Asia to get funds to beef up defences against warming and put off debt payments when disasters strike.

Learn about the Summit in 4 slides
  • 22/06 A new method: green growth partnerships

More than 80 side events:

LIVE: Day 1 of the Summit for a New Global Financing Pact in Paris


22/06 Opening ceremony 

  • Opening by Emmanuel Macron, President France 
  • Vanessa NAKATE, UNICEF Goodwill Ambassador 
  • Sir Nicholas STERN, economist 
  • Amar BHATTACHARYA, economist 
  • Message from Mohamed Bazoum, Président Niger 
  • Mia Mottley, Prime Minister of Barbados 
  • Antonio Guterres, UN Secretary-General 

22/06 A new method: green growth partnerships 

Drawing lessons from the existing partnerships to ensure optimal use of financial resources, how can we define a better coordinated approach within each country and each region, based on the needs expressed by each country? How can we ensure that these country partnerships address climate change at the right scale and the protection of biodiversity – including forests and ocean ahead of UNOC 25 – at the global level? 
  • Moderation: Catherine Colonna 
  • M. Denis SASSOU-NGUESSO, Président de la République du Congo 
  • M. Abdel FATTAH AL-SISSI, Président de la République arabe d’Egypte 
  • M. Cyril RAMAPHOSA, président de la République d’Afrique du Sud 
  • M. Gustavo Petro URREGO, président de la République de Colombie 
  • Mme Ursula VON DER LEYEN, Présidente de la Commission européenne 
  • M. SANJAYAN, CEO Conservation International 

22/06 Debt and SDR-channelling: where do we stand and how to go further?

Development financing is at the nexus of climate, nature and debt. In that regard, multilateral efforts should be accelerated to ensure the debt sustainability. In the particular case of defaulting or about to default countries, progress could be made in coordinating debt restructuring processes in low and middle countries, in particular by committing on timelines in the Common Framework. Implementing climate-resilient tools can be a complementary tool, in particular debt suspension clauses in case of natural disasters, or debt swaps associated with private debt buy backs to reprofile debt and finance conservation projects.
  • Moderation: Nadia Calvino (vice-Prémière Ministre espagnole) / Grand auditorium – Palais Brongniart
  • M. Mahamat Idriss DEBY ITNO, Président de la République du Tchad
  • M. Edouard NGIRENTE, premier ministre du Rwanda
  • M. Kaïs SAÏED, président de la République tunisienne
  • M. Ranil WICKREMESINGHE, président de la République démocratique socialiste du Sri Lanka
  • Mme Kristalina GEORGIEVA, présidente du Fonds monétaire international
  • Dr. Akinwumi A. ADESINA, président de la Banque africaine de développement

LIVE: Day 2 of the Summit for a New Global Financing Pact in Paris


23/06 Prologue: the Paris consensus, what avenues for the coming months ?

  • Laurence Tubiana, European Climate Foundation: introductory words
  • A question to Ngozi Okonjo-Iweala, WTO Director-General: what consequences for the trade agenda ?
  • A question to Alvario Lario, President of the IFAD: what impact for a fund like the IFAD ?
  • A question to Rajiv Shah, President of the Rockefeller Foundation: what role for philanthropists ?
  • A question to Matthias Cormann, Secretary-General of the OECD: what working tracks for the OECD ?
  • A question to Christine Lagarde, President of the European Central Bank: what role for central banks ?
  • A question to Sultan Al-Jaber, President for COP28: what lessons can be learned in view of the COP28 ?

23/06 Closing ceremony


Transcript intervention of Mia Mottley, Prime Minister of Barbados 

Now, are we moving fast enough, and with enough scope? The ambition has certainly increased in the last two days. And I think we've heard from the statements this morning, from Secretary Yellen [Janet Louise Yellen United States secretary of the treasury], from the Prime Minister of China, from yourself [Emmanuel Macron, France], the president of Ghana, from Kristalina [IMF] that there is the political consensus that this issue is bigger than each and every one of us and that we have to be able to work together to be able to make a difference. 

The multilateral development bank's will have to change how they do business and I think that is accepted. The last statement by Secretary Yellin that recognizes the possibility of working with the private sector and philanthropy to boosts its capacity to meet the challenges of global public goods is really the issue. 

We've been talking about climate, but let us talk about the pandemic. The reality is that whether you take the numbers given by the pharmaceutical companies of at least 1 billion, there are 10 pathogens that we need to scale up work on to be ready for phase two A in the event of a challenge so that we can move with speed. There are five pathogens that we need to deal with with antimicrobial resistance. That is going to be the biggest problem that the world will face by 2050 in terms of killing people, and that will reverse a century of medical progress. What is needed is somewhere between 1 billion - if you listen to the pharmaceutical companies - and then Ngozi your commission 10 billion. That is if we take the higher number, the cost of 30 F22s [Lockheed Martin F-22 Raptor]. That's what it is. And therefore the choice for us to put that money aside is too simple for us not to do it. We all went through COVID and we also have COVID decimated each and every one of us carying some countries back two to three decades. 

So I asked us to recognize that the moment has come for this to be the new decision point for what an International Bank for Reconstruction and Development looks like in the third decade of the 21st century. It is not the fifth or sixth decade of the 20th century. 

Secondly, I want to thank us for being able to realize the promises that were made, and that's important to keep the trust. But I fear that if we don't go to Dubai with a record, we will lose the trust of the global population. Dr. Sultan [Sultan Al-Jaber, President for COP28] spoke this morning. I think the time has come for us not to speak in silos anymore. And it therefore means bringing together just as we've come together in Paris, as global leaders, with the international organizations that we need now to sit down with the private sector leaders across oil and gas, across renewable energy across finance, insurance, transport, if we are going to find a common problem or common solution to our problem. So unless there is a plan to go and live on Mars, we do not have a choice. And I hope that this convocation and conversation can take place within the next four to eight weeks. 

We cannot go to the world's population again, making promises and yet saying that this is the most urgent problem facing mankind. We have the capacity to act urgently when we need to. Well, we need to now. Rules are made by us. They're not made to break us. We are made to shape them. And if we can shape the rules in this time, as others ship them before then we will be the ones accountable for what potentially can be the worst reality of mankind. To believe that human species will exist for ever and to believe that failed societies don't happen is to assume an arrogance that is not reflected in our history. And I trust therefore a Emmanuel [president of France] that we will leave here with a greater commitment to ensure that that urgency takes place I believe also, that geopolitics and national politics cannot be allowed to stand in the way of this great crisis. If you cut each one of us we bleed.

We have the same needs. And we therefore - as the prime minister of China just said - recognize that we have to find the common bounds and bridges where we can work together. This matter of the climate crisis is the panacea to be able to allow us to fight off the global politics and the domestic national politics. 

And I fear that if we don't act with alacrity, then we will see too many people losing their lives and livelihoods. So we leave Paris, not with speeches - simply - but with a commitment, as the President of Ghana said: to get down into the granular detail, to make sure that that which we agree here can be executed. 

I'm satisfied that the start is correct with respect to the mobilisation of the 200 billion, but we know deep down that's not going to be enough. And hence the parallel discussions for the reform of governance must take place. 

The last point that I want to make is this difficult discussions require courage. And the most difficult discussion that we face is how do we shape a world in the image of the countries of today? Regrettably, it means that each of us must give up some space, if we are to shape that new world. And because we don't want to give up space, we now are forced to because of the acts outside and existential challenges, that is actually the way of life. Life presents us with the things that we least want to do. When we least have the capacity to do it. But if we don't summon the courage to rise to the occasion, then we will pay the ultimate price. 

We have never had the appropriate discussions for the dismantling of an imperial order. And whether it is in the United Nations system, or whether it is in the multilateral development bank's, regrettably, we continue to see first class and second class citizens. Bob Marley had a song called War. We would do well to go back and read the lyrics of it and not just to read them, but to walk the walk and to talk the talk. 

I want to thank each and every one of us who has come here, because above all else, I sent a genuineness in the hearts of people here, because I think deep down, we all realize this is our moment with destiny. Thank you 

Extracts of the side events

22/06 On the road to Marrakesh – Financing the agricultural transition in lower income countries


En s’appuyant sur les capacités de recherche et développement de l’UM6P, OCP améliore l’accès à des engrais sur mesure, innove en matière de techniques d’agriculture régénérative, promeut l’agriculture de précision, et développe des techniques de séquestration du carbone basées sur le sol.
  • Leonardus Vergütz – Chief Innovation Officer of OCP Group
  • Thomas Pellerin, Hub Leader Maghreb & West Africa, Industrials and Services of the International Finance Corporation (IFC)
  • Paul Luu: Executive Secretary, 4p1000 Initiative
  • Claude Torre, Project Manager & expert on agricultural financing at Agence France Développement (AFD)
  • Moderator: Tamzin Booth, Partner at Brunswick and former Business Editor, Technology Editor and foreign correspondent at The Economist
@43:00 of the recorded video: the support to farmers in Andhra Pradesh (agroecology) was raised by somebody in the audience - and contrasted with the experience of the OCP group + the role of digital by IFC...

22/06 Africa’s Just Energy Future: Why We Need a Roadmap to Accelerate Investment



By Africa-Europe Foundation, Climate Action Platform Africa, Africa investor Group, Mo Ibrahim Foundation, World Resources Institute Africa, The B Team and Power Shift Africa
  • Moderator: Carlijn NOUWEN, Co-Founder, Climate Action Platform Africa
  • Adriano Maleiane, Prime Minister of Mozambique
  • Harjeet SINGH, Head Of Global Political Strategy, Climate Action Network
  • Hubert DANSO, CEO, Africa investor Group
  • Rebekah SHIRLEY, Deputy Director, World Resources Institute Africa
  • Bhekumuzi Dean BHEBHE, Campaign Lead, Power Shift Africantinent
  • Charles WANGUHU, Director, Enzi Ijayo Africa Initiative

22/06 Boosting the Role of the Private Sector to Address Development and Climate Challenges via Food Systems Transformation



This IFAD session showcased successful public-private partnerships and examine how the public sector is delivering on its work with the private sector in this field, along three main dimensions: (1) Enabling – creating an environment for private players to collaborate with small-scale producers; (2) Catalysing – financing private sector entities along rural value chains; and (3) Assembling – attracting private sector business and financiers as co-investors.
  • Moderator: Kolyang PALEBELE, President, Pan-African Farmers’ Organization (PAFO)Alvaro LARIO, IFAD President
  • Malala RABENORO, CEO SOAFIARY
  • Cécile CABANIS, Deputy Chief Executive Officer of Tikehau Capital
  • Paul Biya, President of the Republic of Cameroun

22/06 Presidential Roundtable on the Alliance for Green Infrastructure in Africa (AGIA): Mobilising finance for project preparation and project development to unlock private capital to accelerate investment in green infrastructure in African countries


Replay Français / French Replay Anglais / English

By AGIA (The Alliance for Green Infrastructure in Africa)
  • Azali Assoumani, Président des Comores et Président en exercice de l’Union Africaine
  • Cyril Ramaphosa, Président de la République d’Afrique du Sud
  • Denis Sassou Nguesso, Président de la République du Congo
  • Nana Akufo-Addo, Président de la République du Ghana
  • William Ruto, Président de la république du Kenya
  • Andry Rajoelina, Président de la République de Madagascar
  • Bola Tinubu, Président de la République fédérale du Nigéria
  • Faure E Gnassingbe, Président de la République togolaise
  • Akinwumi Adesina, Président de la Banque Africaine de Développement
  • S.E. Dr. Muhammad Sulaiman Al Jasser, Président de la Banque Islamique de Développement
  • Werner Hoyer, Président de la Banque Européenne d’Investissement
  • Mark Malloch-Brown, Président de Open Society Foundations
  • Mafalda Duarte, Directrice Executive du Fond Vert pour le Climat

22/06 Mobilising Capital for Climate-Positive Growth in Africa



By FSD Africa in collaboration with Catalyst Fund.

A climate positive growth path would be a “win win” for Africa, allowing it to deliver on climate targets while also realising economic growth, prosperity and jobs for its people. But it requires both creative thinking and huge investment across the finance value chain, from small climate-tech start-ups to large sustainable infrastructure projects, to mobilise the capital necessary to realise this ambition. This panel consisted of actors working at the frontier of finance to support Africa’s green growth transformation followed by a discussion in which thought leaders from both public and private sectors analysed what is needed to scale up investment into project pipeline development.
  • Moderator Dr. Frannie LÉAUTIER, Chair, FSD Africa and CEO, South Bridge Investments
  • Chinua AZUBIKE, CEO, InfraCredit
  • Maelis CARRARO, Managing Partner, Catalyst Fund
  • Bogolo KENEWENDO, Africa Director, UN Climate Champions
  • Dr. Alhamndou DORSOUMA, Manager of Climate Change and Green Growth, African Development Bank
  • James MWANGI, CEO, Africa Climate Ventures

22/06 Strengthening innovative financing and novel partnerships to support Africa’s climate resilient development ambitions



By African Union Commission

22/06 Sustainable Finance in LMICs: Innovative Actions for the EU



The High Level Expert Group for Scaling Up Sustainable Finance in Low and Middle Income Countries has been reflecting on innovative actions the European Commission can take to accelerate the flow of private capital towards sustainable investments in LMICs. The HLEG revealed its first key results and recommendations. The panel also showcased an existing Team Europe Initiative, Investing in Young Businesses in Africa.
  • Jutta URPILAINEN, Commissioner for International Partnerships, European Commission
  • Alice RUHWEZA, Senior Director, Policy Influence and Engagement: Africa, Asia-Pacific & Europe, WWF
  • Nicola RANGER, Executive Director, Oxford Martin Systemic Resilience Programme, and Programme Leader, Environmental Change Institute, University of Oxford
  • Timothee JAULIN, Head of ESG Development & Advocacy, Special Operations at Amundi
  • Thede RÜST, Head of Emerging Market Debt, Nordea Asset Management
  • Moderator: Ayaan ADAM, Senior Director and CEO AFC Capital Partners, AFC Capital Partners (Africa Finance Corporation)

22/06 The Alliance for Entrepreneurship in Africa, the road ahead


Replay Français / French Replay Anglais / English

Support for the private sector is one of the central themes of the Summit for a New Financial Pact, and is being addressed by a dedicated working group co-chaired by Oulimata Sarr (Senegal’s Minister of the Economy) and Bertrand Badré (Chairman of the Blue Like an Orange investment fund). 

The objective of the event was to show the solutions provided by the Alliance for Entrepreneurship in Africa, a project-driven platform focusing on private sector. Each project should be presented in the form of a « pitch », a short presentation of the project’s purpose, the beneficiaries and the Alliance members involved.
  • Emmanuel Moulin, French Treasury, Director general
  • H.E. Oulimata Sarr, Senegal, Minister of the Economy (tbc)
  • Makhtar Diop, International Finance Corporation, Managing Director
  • Odile Renaud-Basso, European Bank for Reconstruction and Development, President
  • Papa Amadou Sarr, Agence française de développement, Executive Director Mobilisation Partnerships
  • Aziz Mebarek, AfricInvest, Co-founder
  • Sergio Pimenta, International Finance Corporation, Vice-President Africa
  • Djalal Khimdjee, Proparco, Deputy Chief Executive Officer
  • Jean-Marc Peterschmitt, European Bank for Reconstruction and Development, Managing Director Industry, Commerce & Agribusiness
  • Jonathan Shaw, Nuru, Chief Executive Officer (tbc)
  • Reshma Shah, Equity Bank, Group Director, Sustainability, Equity Group Holdings (tbc)
  • Deborah Vouche, European Investment Bank, Investment officier
  • Nathalie Louat, International Finance Corporation, Director Trade and Supply Chain

22/06 Closing the gap: Investing in science and research to unlock financing in under-resourced settings and effectively tackle climate change

No recording available

By Community Jameel and the Islamic Development Bank

Despite the climate crisis having a disproportionate impact on the world’s least developed countries (LDCs), science and research in LDCs – and in low- and middle-income countries (LMICs) – is under-resourced by current global financing mechanisms. This constrains LMICs’ ability to obtain financing and investment from multilateral development banks, the private sector, philanthropy and others, and limits their potential to drive solutions locally and attract inward investment, as compared to countries with a stronger track-record of evidence-based policymaking. To address this issue, this thematic event highlighted the significance of investing in science and research in LMICs.
  • Uzma SULAIMAN, Associate Director, Community Jameel (moderator and rapporteur)
  • George RICHARDS, Director, Community Jameel (welcome)
  • Professor Michael GREENSTONE, Affiliate and Board Member, Jameel Poverty Action Lab (J-PAL) (panellist)
  • H.E. Dr Hala EL SAID, Minister of Planning and Economic Development, Egypt (panellist)
  • Professor Charlotte WATTS, Chief Scientific Advisor and Director for Research and Evidence, UK Foreign Commonwealth and Development Office (panellist)

22-23/06 Colloquium Science and the Fight against Poverty: How Far Have We Come in 20 Years and What’s Next?


This colloquium served as the culmination of the first year of J-PAL co-founder and director Esther Duflo’s chair position in “Poverty and Public Policy” at the Collège de France, which she has used to explore the progression of the global effort to develop and mainstream evidence-based policy. This event charted the path forward for policymaking informed by rigorous research on a global level and continue J-PAL’s work of advocating for innovative, cost-effective solutions to our most pressing challenges.

The colloquium gathered a wide range of stakeholders including: researchers, policy-makers, social entrepreneurs, donors and the general public. The event: 
  • explored the role that evidence use can play in shaping social policy and development programmes in different contexts; 
  • shared best practices in evidence-based policy making at a global level; 
  • celebrated the progress made in the fight against poverty through rigorous research; 
  • and took stock of the work yet to be done to effectively respond to global challenges, in particular climate change.
23/06 Lutter contre la pauvreté : de la science aux politiques publiques
  • Abhijit Banerjee - Placing Evidence and Innovation at the Heart of Development Policy: Opening Address
  • Rachel Glennerster, Santhosh Mathew - 20 Years of Research and Evidence Use
  • Jutta Urpilainen - Address
  • Michael Kremer - Fostering the Funding of Innovation in Development Cooperation
  • Hervé Berville - FID and the Modernisation of Development Partnerships
  • Sasha Gallant, Juliette Seban - Introducing Development Innovation Ventures (DIV) and the Fund for Innovation in Development (FID)
  • Kwabena Tandoh, Alison Naftalin, Naomi Kirungu - Perspectives from Project Implementers
  • Dean Karlan, Arianna Legovini, Thomas Melonio, Charlotte Watts - How Has Development Cooperation Been Transformed by the Surge in Rigorous Evidence? What Can We Do Better?
  • Robin Burgess, Michael Greenstone, Hardik Shah - Climate challenges and solutions
  • Pascaline Dupas, Carol Nekesa - Reflecting on the Power of Long-Term Research Partnerships: Presentations and Dialogue (1)
  • Elan Satriawan, Rema Hanna, Miriam Laker, Tavneet Suri - Reflecting on the Power of Long-Term Research Partnerships: Presentations and Dialogue (2)

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