Summary Proposals for World Economic Forum Financing for Development Workshop:

LEVERAGING OFFICIAL SECTOR CAPITAL AND ENHANCING FINANCIAL GOVERNANCE– PRACTITIONERS’ SOLUTIONS

Background : In partnership with the United Nations Department of Economic and Social Affairs, the World Economic Forum’s Global Institute for Partnership and Governance is convening a series of structured public-private discussions over the next year to develop recommendations in two particular areas:

• How to better leverage multilateral development banks and aid agencies to catalyze private investment ?
• How to bring financial governance capacity building to scale?

Improvements in these difficult areas are possible, as we have meaningful political openings at the country, regional, and global levels. In Brazil and other Latin American countries, the importance of private sector participation is at the center of the country’s national development objectives, ranging from infrastructure development to trade, and the development of local companies and provision of employment. The United Nation’s Monterrey Consensus underscores the commitment of all UN member countries to better mobilize private sector, and fully employ the respective multilateral, regional, and national official organizations to be more effective in meeting that objective.

The first roundtable in Sao Paulo October 26 and 27, 2004 was a highly interactive discussion among key public officials, private sector executives, and other experts from around the world, feeding into a final report of recommendations that will be reported to the international community via high-level UN meetings on development scheduled for 2005 as well as the Forum’s Annual Meeting in Davos. Below are summaries of initial proposals put forward by participants in the first roundtable that were refined in the workshop.

Proposals by session (please click on highlighted title to download document). Please note that not all discussants have not yet submitted written material, but as new material is submitted, we will post it to the web site. Also please see below for other background material.

TUESDAY 26 OCTOBER

OPENING REMARKS

• Context: Background Financing for Development: Rick Samans, Managing Director, Global Institute for Partnership and Governance, World Economic Forum & Forum & Krishnan Sharma, Focal Point for Business Engagement, UN Financing for Development Office
• Meeting Structure & Objectives: Dr. Barbara Samuels, Senior Advisor, WEF Financing for Development Initiative and Project Director, Business Steering Committee, UN Financing for Development

SESSION ONE:
Scene Setting : Roundtable Discussion on Systemic Investment Bottlenecks:What Are the Key Global, Regional, and In-Country Sources of Inefficiency and Failure?

• Constraints & Impediments Affecting Financial Markets and Private Sector Investment: Bob Sheppard, Co-Chair, Infrastructure Experts Group & Dr. Barbara Samuels, Senior Advisor, World Economic Forum and Project Director, Business Steering Committee, UN Financing for Development

SESSION TWO:
Government Initiatives in Risk Mitigation: What are the tools governments are developing for mitigating risk, and how should they be refined and mainstreamed?

• Panel One - Proposals to Refine Bilateral Official Support Programs by Defining Market Gaps, Unbundling Supply, and Selective Targeting of Risks
  • John Wasielewski, Director, Office of Development Credit, USAID
  • Unbundling of Official Support: Diana Smallridge, President, International Financial Consulting Ltd.
    • USAID Year in Review
    • USAID Environment Guarantees
    • USAID Water Guarantees
• Panel Two – Proposals to Target Multilateral Support and Other Innovations
• Defining an Innovative Menu of Options & Advisory Support for Customizing to Specific Country Needs, Gabriel Goldschmidt, Principal Investment Officer, Latin America & Caribbean Department, International Finance Corporation
  • Pamir Article
  • Pamir Diagram
  • Output-Based Aid Principles
  • Output-Based Aid Risk
• Angela Paris, Head of Private Sector Development Policy, Inter-America Development Bank

SESSION THREE:
Working Lunch: Private Sector Investment Priorities and Strategies: What Are Leading Government Initiatives to Mobilize Domestic and International Private Sector Capital?

• Brazil’s PPP Program
  • Marcos Pinto, PPP Consultant, Brazilian Ministry of Planning, Budget, and Administration
  • Advancing the Brazilian PPP Program: Daniel Sonder, Executive Staff Member to the Secretary of Finance and Treasury, Secretaria de Estado da Fazenda de São Paulo & Jose Carlos Meirelles, Partner, Pinheiro Neto Advogados

SESSION FOUR:
Investor Proposals for Leveraging Public Sector Capital: From an Investor’s Perspective, What Are the Needed Improvements in Risk Mitigation Tools and Services?

• Panel One – Proposals to Leverage Official Sector Instruments for Increasing Local Currency Funding with Revolving Funds, Swap Enhancements, and Tenor Puts
  • Leveraging Official Sector Financial Instruments to Increase Local Funding of Subsovereign Infrastructure: Tony Pellegrini, President, International Association of Development Funds
    • State Revolving Funds , Tony Pelegrinni
  • Tenor Extension Guarantees , Jonathan Haddon, Of Counsel, Orrick Herrington & Sutcliffe
    • Local Currency Article, Jonathan Haddon
    • ADB Local Currency Products
  • Multi-lateral Sponsored Regional Swap Facility, Odo Habeck, OGH Advisors
  • S&P Derivative Product Companies
    
• Panel Two – Proposals to Reduce Regulatory and Exchange Risk with New Securitization and Pooling Structures, Contingent Guarantees, and Foreign Exchange Liquidity Facilities
  • Local Debt Markets and Official Agencies - Enhancing Growth Opportunities, Valentino Gallo, Managing Director, Latin America Export and Agency Finance, Citigroup
  • Legal Tool Kit for Government Mitigation of Regulatory Risk: Jonathan Haddon, Of Counsel, Orrick Herrington & Sutcliffe & Contingent Guarantees to Mitigate Regulatory Risk: Bob Sheppard, Co-Chair, Infrastructure Experts Group (Liquidity Powerpoint Presentation)

SESSION FIVE: Dinner

• Needed Reforms to the International Architecture: Structural, Organizational, and Financial Engineering Options to Enhance MDB and Donor Overall Effectiveness in Mobilizing Private Investment
  • Opening comments by Richard Frank, CEO, Darby Overseas Investments, followed by general discussion. Richard (former Chairman of the World Bank’s Private Sector Group) has offered to set forth his views on new initiatives that need to be adopted by the official sector.
    • "Teaching Old Dogs New Tricks", The Banker
    • Biography of Richard Frank

WEDNESDAY 27 OCTOBER

SESSION SIX:
Organizational enhancements for deal transactions: What Specific Organizational Changes Need to Be Made to the Multilateral, Regional, and Donor Entities to Facilitate Investment?

• New Local Insurance Vehicles Such as Monolines: Thomas Felsberg, Managing Partner, Felsberg and Associates, Brazil
• Latin America Infrastructure Initiative: Setting Up Feasibility, Equity & $10 Billion Debt Funds: Norman Anderson, CEO, CG/LA Infrastructure LLC
  • Presentation, Norman Anderson
• Need for an Emerging Market Export Credit Agency: Diana Smallridge, President, International Financial Consulting & Paul Mudde, Head of Reputation Management and Sustainable Development, ABN AMRO
  • ADB Concept Paper, Diana Smallridge
  • EM-ECA Presentation, Paul Mudde
• Multilaterals Provide Brazilian Export Credit Agencies with a Political Risk Breach of Contract Guarantee: Vinicio Fonseca, Director, Odebrecht
  • Diagram
  • Background paper on Infrastructure Impediments
• Reengineering the Bretton Woods Institutions: Richard Frank, CEO, Darby Overseas Investments