How can we ensure effective post-Summit financing for poor and vulnerable countries? Prospects arising from proposals by FERDI's Chair in International Architecture of Development Finance

June 22, 2023, Paris

This event was organized by FERDI in conjunction with the Summit for a New Global Financial Pact. (from 6 PM to 7:30 PM)

Speakers (AIFD Chair) : 

  • Jean-Michel Severino, Member of the Académie des Technologies, Co-Director of the Impact Investment Chair at FERDI, Chairman of the Supervisory Board of I&P
  • Bruno Cabrillac, Deputy Director General of Economics and International Relations, Banque de France
  • Patrick Guillaumont,  President of FERDI 

External speakers: 

  • Li Junhua, Under-Secretary-General for Economic and Social Affairs, Department of Economic and Social Affairs (DESA), United Nations 
  • Mze Abdou Mohamed Chanfiou, Minister of Finance, Budget and Banking of the Comoros
  • Fatoumata Ba, President of Janngo 
  • Masood Ahmed, President of the Center for Global Development (online)  
  • Sidi Ould TAH, Director General of the Arab Bank for Economic Development in Africa (BADEA)
  • Ngueto Tiraïna Yambaye, Managing Director of the African Guarantee and Economic Cooperation Fund and former Chadian Minister of the Economy and Planning 
  • Daouda Sembene, Managing Director of AfriCatalyst Global Development Advisory 

The Summit for a New Global Financial Pact, which was initially aimed at financing poor and vulnerable countries, was assessed on the basis of its contribution to improving this financing. FERDI's AIFD Chair has put forward ten recommendations to strengthen this contribution, while examining how they might be implemented. They aim to address situations of poverty and vulnerability.

Four of the ten recommendations were discussed more specifically with the qualified personalities, with a view to the follow-up to the summit:

  • In addition to income, multidimensional vulnerability should be taken into account when allocating concessional funds. After the plea made in favor of this idea by senior political figures in the morning at Palais Brongniart, we explained how this principle can be implemented, in particular by reforming the MDB allocation formula. If there is a special envelope for adaptation, it is the physical vulnerability to climate change that must be taken into account.
  • Massively encourage private investment to reduce poverty and vulnerability, with public support if necessary and depending on its impact, giving priority to investment geared towards local entrepreneurship and agricultural sectors, which may involve the creation of a dedicated financial tool. Poverty reduction is also expected from the largest investments, particularly in infrastructure, by means of appropriate support from the MDBs, implemented through a reorganization integrating support for the private sector into their country strategy.
  • Act quickly when major shocks occur. One proposed solution is contingent debt treatment. And for poor and vulnerable countries that are not heavily indebted, access to automatic financing to prevent their collapse.
  • Establish a body to monitor financial flows to the South and assess their compliance with the objectives, in particular their orientation towards poor and vulnerable countries. This body would deal with all flows intended for development and global public goods, not just ODA. Its membership should be broader than that of the DAC, including poor and vulnerable countries and other international coordination bodies.
Event Taking account of multidimensional vulnerability in the allocation of new development fundingEvent On the basis of a "financial pact": reforming conditionality and procedures to increase the effectiveness of public fundingEvent How to mobilize domestic and international private investment for sustainable growth in poor and vulnerable countries ?Event Avoiding a new debt crisis: financial engineering or development dynamics? Event Diversification and fragmentation of public financing for developmentEvent Multiple climate or environmental funds: What role for the multilateral development banks? Event Purposes and recipients of public financing for development. How to reach vulnerable countries?

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