The banks included: African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, International Monetary Fund, The World Bank Group.
They noted that the global economic recovery is gaining traction and welcomed overall robust growth in emerging and developing economies, supported by strong private demand. However, they are concerned that the recovery is uneven, unemployment remains high, and unsustainable patterns of growth may be re-emerging. The banks will continue to work with their clients to promote job-creating growth that is inclusive and sustainable.
The banks expressed their concern about the current high level of food prices, resurgence in food price volatility and inflationary pressure from rising food prices. They took note of the different national measures being taken to ensure food sufficiency but believe concerted actions at a global and regional level are needed. They said they would work with clients to avoid harmful policies, create safety nets and promote more resilient and productive agriculture. They agreed to develop a Joint Action Plan, emphasising the need to reduce food price volatility and improve food and water security in coordination with the G20 process.
They also stressed the importance of their work in helping to finance efforts towards climate change mitigation and adaptation. They will continue to support the UNFCCC process for establishing the Green Climate Fund (GCF) with a view to a successful and early conclusion. In the interim, the Climate Investment Funds will continue to be an important instrument for scaled-up climate action and an opportunity for learning lessons that would be of direct relevance to the GCF.
The banks emphasised the need to develop local capital markets to boost sources of local currency funding. We stressed the importance of tackling this issue according to individual country needs and taking account of the wider macroeconomic, regulatory and market infrastructure dimensions that have led to the under development of local markets. We will continue to support deepening of capital markets in our regions, drawing on each other’s experience.
They underscored the importance of engaging with the private sector as engines of growth and job creation, and promise to continue to help create and strengthen markets and work to correct market failures, to crowd-in the private sector.
Finally, they also discussed the fast moving developments in North Africa and the Middle East region. They are actively assessing how they can respond to the needs of each of the countries involved. The banks approach this challenge in a spirit of close cooperation, drawing on lessons from other regions and on the complementary capabilities of each institution.
