Rethinking the role of National Development Banks Overview
In resolution 60/188 [ E F R S A C ] of 22 December 2005, the General Assembly recognized the work of the Financing for Development Office in organizing, within its mandate, workshops, multi-stakeholder consultations, panel discussions and other activities aimed at better enabling member countries to implement their commitments as agreed in the Monterrey Consensus, and requests the Office, in collaboration with experts from the public and private sectors, academia and civil society, to continue its work in this area.
How can the role of NDBs in promoting economic and social development be enhanced? This fundamental question will be addressed through a set of multi-stakeholder consultations during 2006-2007. The process will be organized by the Financing for Development Office of UN-DESA, in collaboration with NDBs, International Financial Institutions, Regional Development Banks, UN Regional Commissions and other interested parties from the official and private sectors, academia and civil society.
Analyzing the evolving role of NDBs requires looking at a broad set of issues:
- Filling Gaps in Financial Sector Development, including by providing long term financing, providing a range of financial products for development and building inclusive financial sectors;
- Enhancing the Climate for Business, including by promoting and supporting SME development, reducing volatility and acting as a catalyst; and
- Capacity-Building of NDBs, including by improving prudential regulation and supervision, enhancing governance and management and measuring and monitoring results;
Launch of the Consultative Process
As a first step, an Ad Hoc Expert Group Meeting was convened on 1-2 December 2005, with a view to identifying and exploring key substantive issues to be addressed during the consultation process. A report of the meeting was prepared.
A Background document (revised version available in English and French) was prepared by the staff of the Financing for Development Office to provide a possible framework for analysis at follow-up regional meetings.