Lessons for Development Banking from the European Investment Bank
This resource explores the role of the European Investment Bank in financing European development, combining tradition with innovation to address missing markets and support common-interest projects. Learn about the bank's focus on smart, sustainable growth and its impact on macroeconomic stabilization. Discover how risk-taking and partnerships drive results, with lessons for developing countries in leveraging the private sector for green technology and embracing bold policies.
Lessons for Development Banking from the European Investment Bank
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Presentation Transcript
Lessons for Development Banking from the EIB Judith Tyson SOAS, University of London
Why the European Investment Bank? • Very successful in financing European development • Traditional development bank • Combined with innovation
“Traditional” development 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
Innovation in policy... • “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 execution... Risk & results! • Bank has taken risk! • Bank has focused on results! • Partnerships with private sector
Developing country lessons • 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?
Further references • “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