Summary
Event: 4th Development Banking Summit (Finance in Common Summit)
Date: September 4-6, 2023
Location: Cartagena, Colombia
Co-sponsored by Association of Latin American Development Banks (ALIDE), Inter-American Development Bank (IDB), Colombian Trade Bank (Bancoldex), Latin American Development Bank (CAF), European Investment Bank (EIB)
Supported by: Western Agency for International Development Cooperation (AECID), French Development Agency (AFD), Italian Depository Loan Corporation (CDP), International Fund for Agricultural Development (IFAD), etc.
[Main participants
Approximately 1,500 people attended the event, with speakers including the President of Colombia, Minister of Finance, Minister of Environment, President of the IDB, President of IFAD, Vice President of the World Bank, and other heads of state and agencies.
Background and Objectives
The Development Bank Summit aims to bring together approximately 522 development banks to discuss the role of development banks in achieving climate change and the SDGs. The first Development Bank Summit was held in 2020, led by the President of AFD as Chair of the International Development Finance Club (IDFC). This was the first time it was held in Latin America and the Caribbean.
Under the overall theme “Building new alliances for the next generation of development financing,” various sessions were held over the three days to discuss the role of development banks in accelerating the achievement of the SDGs, climate goals, and the biodiversity framework, as well as their mutual collaboration and mobilization of private-sector financing. Various sessions were held over the three days to broadly discuss the roles of development banks in accelerating the achievement of the SDGs, climate goals, and biodiversity frameworks, as well as their mutual collaboration and mobilization of private-sector funds.
From JICA, Senior Advisor Megumi Muto participated as a panelist in the roundtable “Driving Global Change: The Role of PDBs to Mobilize Private Capital for Sustainable Infrastructure” and Deputy Director-General Sei Aoki of the Brazil Office participated as a panelist in the side event “Preserving the Amazon: The Green Coalition of Development Banks”. Driving Global Change: The Role of PDBs to Mobilize Private Capital for Sustainable Infrastructure,” and Mr. Issei Aoki, Deputy Director of the Brazil Office, participated as a panelist in the side event “Preserving the Amazon: The Green Coalition of Development Banks. Aoki was a panelist at the side event, “Preserving the Amazon: The Green Coalition of Development Banks.
Round Table Summary
In order to meet the enormous global demand for infrastructure, the cooperation of private capital, not only public funds but also private financial institutions and institutional investors, is essential. The ways in which development banks can contribute to mobilize private capital by priming public funds were discussed with speakers from the World Bank, IDB, EIB, and other organizations.
Mr. Muto mentioned the Jakarta MRT and Panama Metro Line 3, and explained that it is difficult for the private sector to undertake transportation infrastructure projects in developing countries from the outset, and that JICA supports the creation of master plans that serve as blueprints for the entire project, and supports the development of infrastructure that will be central to social change by providing government financing, while taking the financial situation of the partner country’s government into consideration. JICA supports the creation of a master plan for the entire project, and while taking into account the financial situation of the partner government, JICA first stimulates local demand by supporting the infrastructure that will be the core of social transformation through government financing, and then plans to make subsequent projects and public-private partnerships (PPP) viable. He also introduced ADB’s efforts to mobilize private-sector funds through its investment in the Asian Infrastructure Partnership Trust Fund (LEAP), a trust fund managed by the ADB.
[Summary of Side Events].
The ongoing destruction of the Amazon rainforest requires urgent conservation efforts by a diverse range of stakeholders, including international organizations, governments involved in the Amazon, government agencies, private companies, and civil society groups. Development banks’ efforts to ensure the livelihoods of local residents and the sustainability of the Amazon were discussed with speakers from the IDB and development banks in Latin America and the Caribbean, among others.
Since Amazon conservation efforts require a variety of funding sources and coordinated actions, we introduced the Green Coalition, a group of 20 development banks, including the IDB and the Brazilian National Bank for Economic and Social Development (BNDES). The development banks will work together to provide solutions by combining finance and technical assistance to tackle illegal activities, improve poor infrastructure, and expand microfinance and carbon credits for urban residents in the Amazon region.
Mr. Aoki introduced JICA’s efforts in Brazil to support efficient control of illegal logging sites by predicting their locations using radar satellite technology and AI, and to support sustainable agroforestry activities, and called for wider cooperation in the future.
The FiCS Opening Session
Senior Councilor Muto speaks at the roundtable
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