Lessons for Development Banking from the EIB

Lessons for Development Banking

from the EIBJudith Tyson

SOAS, University of London

Very successful in financing European development

Traditional development bankCombined with innovation

Why the European Investment Bank?

“Missing markets” Long-term, large scale financing

◦ Beyond capacity of individual states◦ Common-interest projects

Anti-cyclical & shock financing◦ Highly relevant in recent crisis◦ Essential to macroeconomic stabilization

“Traditional” development bank

“Smart, sustainable & inclusive growth”

Green infrastructure◦ Huge scale & timeframe for projects◦ Externalities of costs of inaction

High-value employment◦ Research and development◦ Enabling infrastructure

Innovation in policy...

Bank has taken risk!Bank has focused on results!Partnerships with private sector

Innovation in execution... Risk & results!

Traditional role critical◦ Missing markets◦ Anti cyclical and shock financing

Be bold! ... ◦ Risk takers & innovators focused on results, not

protecting banks capital◦ “Use” the private sector◦ Policy: ... leapfrogging” to green technology

The new BRICS bank?

Developing country lessons

“The European Investment Bank: Lessons for Developing Countries”. S. Griffith-Jones and J Tyson. UN Wider, 2012

“The European Investment Bank and SMEs: Key Lessons for Latin America & the Caribbean”. S. Griffith-Jones and J Tyson. CEPAL, 2011

“The European Investment Bank and its Role in Regional Development and Integration” Griffith-Jones, S, and Tyson, J, n 'The Transformations of the International Financial System' edited by Cintra, Marcos Antonio Macedo & Gomes, Keiti da Rocha, 2012

“Reform of the European Investment Bank: How to upgrade the EIB's role in development”. Griffith-Jones, S and Tyson, J 2011. European Parliament's Committee on Development

Further references