CENTRE DEDEVELOPPEMENT CENTRE

DEVELOPMENT

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INTRODUCTIONGrowing private capital inflows are good news for countries and companies in the developing world seeking to increase their financing options. But which of these flows are the most effective in stimu-lating sustainable economic growth and poverty reduction? And by which means can external actors, particularly the multilateral banks and bilateral donors, help catalyse more private financial flows to developing countries? Where lies the future of risk mitigation, product deployment, capacity develop-ment and change management?The present Public-Private Roundtable will bring together senior executives from developing countries, the financial services industry and official donor agencies – bilateral and multilateral – to discuss innovations in mobilising private development finance.The Roundtable will constitute a meeting point of two discussions: the OECD Global Forum on Devel-opment and the World Economic Forum’s Financing for Development Initiative. In line with the 2002 Monterrey Consensus, both initiatives are currently generating recommendations for more effective development finance, ahead of the UN Follow-up Conference on Financing for Development, to be held in Doha, Qatar, in late 2008.

OPENING SESSIONPrivate development finance: the new reality for developing countries (10:15 – 11:15)

A host of private actors are entering the field of development finance. These include commercial and investment banks, institutional investors such as equity, pension and hedge funds, corporations with long-term infrastructure investments or corpo-rate social responsibility initiatives, and foundations with extensive projects in social sectors. In addition to OECD-based private actors, operators based in emerging markets like Brazil, India, South Africa and Morocco are also playing an increasing role in de-veloping countries.As we head to the Doha Summit in late 2008, what are the major trends in private development finance, and which questions need answering among pri-vate-sector executives and donor officials?

DAY ONE: Thursday, 28 February 2008

9:30 Registration and coffee

10:00 Welcome Jörg Frieden Head of Division, Development Policy and Multilateral Cooperation, Swiss Agency For Development Cooperation

Philippe Burrin Director, Graduate Institute of International and Development Studies

10:15 Introductory presentations Javier Santiso, Director, OECD Development Centre Richard Samans, Managing Director, World Economic Forum Joost Zuidberg, Managing Director, The Currency Exchange Fund, Netherlands Chair: Philippe Burrin, Director, Graduate Institute of International and Development Studies

10:45 Discussion

SESSION IINew options, more ownership? Which private investment flows are best for developing countries? (11:15 – 12:45)

Aid is most effective in boosting economic growth and reducing poverty when recipient countries take charge of – or “own” – their aid programmes. The same might be said for private sources of development finance. While private in-vestment is certainly a boon for economies seek-ing to increase their financing options, it is most successful when governments take a strategic approach towards foreign investment and send clear signals to investors as to their preferences. In this session, experts from developing and emerging economies will shed light on the emer-gence and impacts of diverse sources of private sector finance.

They will also explore the success factors and challenges in mobilising the “right” kinds – and limiting the “wrong” kinds – of private invest-ment flows. Regarding the former, what efforts are needed by financial institutions and recipient markets to create a more investment-friendly environment? Regarding the latter, what have been the positive and negative experiences in imposing capital controls, curtailing foreign bank entry or limiting foreign ownership in local stock markets?

11:15 Lead presentations Lesetja Kganyago, Director-General, National Treasury of South Africa Damian Ondo Mane, Presidential Advisor, Equatorial Guinea Yung Chul Park, Director, Center for International Trade and Finance, Seoul National University Patrick Osakwe, Chief, Financing Development, Trade, Finance and Economic Development Division, United Nations Economic Commission for Africa

Chair: Oscar de Rojas, Director, Financing for Development Office, UN Department of Economic and Social Affairs 12:15 Discussion

13:00 Lunch

SMALL GROUP DISCUSSIONSInnovation and good practice in development finance: what works and what doesn’t for private actors? (14:30 – 16:00)

These small-group discussions will provide an opportunity for private actors to share ex-periences in investing in developing countries. Groups A1 and A2 will bring together commer-cial and investment banks, while groups B1 and B2 will bring together funds and firms.

Key questions will include:• How do private actors manage relationships with local government and private sector rep-resentatives?

• How may governments and donors provide better incentives for development-friendly in-vestment, for example in relation to:- capital market development, access to finan-cial services and instruments for risk manage-ment?- the rule of law, stable financial and fiscal poli-cies and anti-corruption measures?

• How can private actors join forces with mul-tilateral development banks as providers of development solutions, and not just of financial products? What is the role of public-private partnerships, and how can their number be increased?

Group A1 Auditorium Jacques-Freymond

Introductory remarks: Ian Callaghan, Director, Microfinance Institutions Group, Morgan StanleyKhalid Sheikh, Senior Vice President, ABN Amro Bank NVModerator:Rob Kahn, Managing Director, Public Sector Advisory Group, Citigroup

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Group A2 Salon William Rappard

Introductory remarks: Faryar Shirzad, Managing Director, Global Head of the Office of Government Affairs, Goldman SachsWendy Deller, Director, Public Policy and Sustainability, Global Retail & Commercial Banking, Barclays Corporate AffairsModerator:Javier Santiso, Director, OECD Development Centre

Group B1 Salle Georges Abi-Saab

Introductory remarks: Marcos Kulka, Chief Executive Officer, Fundación ChileRené Nicolodi, Senior Sustainability Analyst, IRN, Zürcher KantonalbankModerator:Richard Laing, Chairman, CDC Group Plc

Group B2 Salle S3

Introductory remarks: Jean-Louis Vinciguerra, Special Financial Advisor, The Aga Khan FoundationJonathan M. White, Programme Officer, Economic Policy Program, German Marshall Fund for the USModerator:Jack Lowe, Chief Executive Officer, BlueOrchard Finance SA

16:00 Coffee

SESSION III (small group reports) Improving the environment for private investment and develop-ment outcomes (16:30 – 18:00)

CONFERENCE DINNERVenue: Salon Gustave-Ador, Hotel Royal (41-43, rue de Lausanne)(19:30)

To begin this Session, moderators of each small-group discussion will present three policy recom-mendations on improving the environment for in-vestment in developing countries. These messages can be directed at developing-country and donor-agency decision makers.

Following the reports, policy makers and experts from emerging economies and developing countries will be invited to comment, focusing on the recom-mendations they regard as the most effective and feasible to implement.

16:30 Discussants Claudia Manning, Board Member, Development Bank of Southern Africa Vincent le Guennou, Executive Vice-President, ECP Investment, Tunisia Saumitra Chaudhuri, Member, Economic Advisory Council to the Prime Minister of India José Antonio Ocampo, Professor, Professional Practice in International and Public Affairs, Columbia University Chair: Eric Martin, Swiss Ambassador to the OECD

Welcome by:

Enrique García RodríguezExecutive PresidentAndean Development Corporation

SESSION IVDonor agencies and private-sector finance: seeking solutions beyond aid(9:15 – 10:30)

Following commitments in Monterrey and Gle-neagles, donors remain under pressure to raise the volumes of their aid. But with private capital flows to developing countries fast outpacing official aid, do-nors are asking how their capabilities may stimulate private investment. This trend is driven by the reali-sation that aid alone cannot finance development.

According to OECD figures, around 20 per cent of bilateral aid delivered by members of the Develop-ment Assistance Committee takes the form of aid for investment (in 2005, such aid amounted to $12 bn).

Donors have been creating instruments for public-private investment, introducing new guarantees for risk mitigation and working to deepen capacities for the development of local financial markets. They have also been working with the private sector to improve information flows and ratings on emerging markets.

Nonetheless, uncertainty remains as to the priorities and appropriate portfolio mixes of official donors in this relatively new field of activity. Should they di-rect resources towards those countries and sectors still beyond the market’s reach, or compete with the private sector to lower capital costs? How can they build on initiatives in public-private collaboration?

DAY TWO: Friday, 29 February 2008

8:30 Coffee

9:00 Recap of Day One; looking ahead at Day Two

Preeti Sinha, Associate Director, Financing for Development Initiative, World Economic Forum Henri-Bernard Solignac Lecomte, Head of Policy Dialogue, OECD Development Centre

9:15 Lead presentations

Werner Gruber, Minister, Deputy Head for Economic Cooperation and Development, State Secretariat for Economic Affairs, Switzerland Michael Klein, Vice President, Financial and Private Sector Development, World Bank and International Finance Corporation Chris Vermont, Head of Debt Capital Markets, Guarantco, UK

Chair:

Richard Carey, Director, OECD Development Cooperation Directorate

SMALL GROUP DISCUSSIONSCatalysing private finance: a new priority for official development assistance?(10:30 – 11:45)

These small-group discussions will allow of-ficial donor agencies to compare experiences in catalysing private investment in developing countries. Groups A1 and A2 will bring togeth-er multilateral organisations, while groups B1 and B2 will bring together bilateral donors. Key questions will include:

• What have been agencies’ experiences in catalysing private investment?

• What challenges do they face in dealing with private actors? What role is played by the boards of donor agencies in supporting private sector engagement? How can de-partments within agencies collaborate better about private-sector engagement?

• How do participants view the optimal divi-sion of labour between public and private sectors?

• In which sectors are public-private initia-tives most fruitful? Are current staff incentive structures within official agencies conducive to partnerships?

Group A1 Auditorium Jacques-Freymond

Panelists:Issam Abousleiman, Head of Banking Products, Banking and Debt Management Department, World BankRobert M. Bestani, Director General, Private Sector Finance, Asian Development BankLuc Leruth, Fiscal Expert on Public-Private Partnership, International Monetary FundDaniel Ottolenghi, Chief Economist, European Investment BankTim Turner, Director of Private Sector and Microfinance, African Development BankModerator:Karim Dahou, Technical Advisor, Africa Partnership Forum Support Unit

Group A2 Auditorium Jacques-Freymond

Panelists:Carlos A. Primo Braga, Director, Economic Policy and Debt Department, World BankWerner E. Liepach, Principal Director, Asian Development Bank Manuel Malaret, Director, Small and Medium Enterprises, Andean Development CorporationPaul Clements-Hunt, Head of Unit, UNEP Finance InitiativeNick Rischbieth, Executive Vice-President, Central American Bank for Economic IntegrationApolonio Ruiz Ligero, Vice-Governor, Council of Europe Development Bank

Moderator:Rick Samans, Managing Director, World Economic Forum

Group B1 Salon William Rappard

Panelists:Hiroto Arakawa, Executive Director, JBIC Institute, Japan Bank for International CooperationBjorn Blomberg, Managing Director, SwedfundJohannes Feist, Head, Promotional Instruments and Financial Products, KfW Development BankGilles Genre-Grandpierre, Head, Banking and Capital Markets, PROPARCO, FranceModerator:Stephen Groff, Deputy Director, OECD Development Cooperation Directorate

Group B2 Salle S3

Panelists:Jaakko Kangasniemi, Managing Director and CEO, FinnFund Gavin McGillivray, Head, Global Funds and Development Finance Institutions, DfIDKjell Roland, Managing Director, Norfund John Wasielewski, Director, Office of Development Credit, USAIDModerator:Preeti Sinha, Associate Director, Financing for Development Initiative, World Economic Forum.

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SESSION V (small group reports)Messages for the Doha Conference on Financing for Development(11:45 – 12:30)

CONCLUDING REMARKS(12:30 – 13:00)

LUNCH (13:00 – 14:00)

To begin this Session, representatives of each small-group discussion will present three recom-mendations on how official donor agencies can help catalyse development-friendly investment.

Following the reports, discussants will share their views on the proposals presented and on the most important messages to be passed along to the Inter-national Conference on Financing for Development.

The Conference, to be held on 29 November – 2 December 2008 in Doha, Qatar, will examine how well the international community has been doing in implementing the 2002 Monterrey Consensus, which sets out goals related to the mobilisation fi-nances for development.

11:45 Discussants Amar Bhattacharya, Director, G24 Secretariat Matthew Martin, Director, Development Finance International

Chair: Eckhard Deutscher, Chair, OECD Development Assistance Committee

Helmut Reisen, Counsellor, OECD Development CentreRick Samans, Managing Director, World Economic Forum

CENTRE DEDEVELOPPEMENT CENTRE

DEVELOPMENT