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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.
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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