Getting ready for sustainable development: “Beyond anticyclical functions, beyond financing…”

(Tokyo, Oct. 2012).- The global economy will be under the threat of a crisis for the next two-to-three years, which could have an impact in many developing countries. The weakening of banks’ financial assets in times of long term financial turmoil can worsen difficulties even more. In this scenario, development financial institutions have a strategic role to boost developing economies in a sustainable manner.

The International Development Finance Club (IDFC) has become a major network of 19 development financial institutions with mandates for national, regional and international activities around the world.

IDFC member institutions are recognized for their robust risk mitigation focus in long term financing. Their importance has grown consistently since the ‘90s, helping to promote sustainable growth and development in times of economic turmoil.

IDFC: members, mission and works

IDFC member institutions, which are leaders in their respective fields, usually play an anticyclical and catalytic role in the public financial sector, taking advantage of their specific mandates and diverse activities. Among their key experiences there are: boosting development in areas that benefit society, assuming bigger risks, being customer oriented and ensuring the desired impact.

IDFC’s main goals are: 1) facilitate social development; 2) highlight economic and political leaders’ development agenda; 3) contribute to mitigating environmental and social risks; and 4) maximize sustainable development. By uniting their regional and international experience with permanently perfected instruments, the Club actively addresses issues that are related to economic development, including financing to mitigate the consequences caused by climate change.

IDFC 2012: Successful first year

Following the successful 2012 work agenda, including the Mapping of Green Finance Report and the Position Paper on Leverage Private and Public Funds, IDFC members have agreed on a new work program for 2013. IDFC will focus its activities on the general theme of sustainable development, with special emphasis on environmental and social development.

Sustainable development includes, but it’s not limited to, infrastructure (green), renewable energy and energy efficiency. The small and midsize enterprise development and social inclusion through poverty reduction are the main channels for the club’s activities in terms of social development.

IDFC member institutions have a successful and discernible track record in integrating the pillars of sustainable development into their mandates. Activities contributing to achieving the goals outlined above not only include identifying and sharing best practices, but also joint financing and the common implementation of emblematic projects. They will also contribute significantly to existing knowledge through a broad common research.

About IDFC

The IDFC is a network of 19 financial development institutions with mandates for national, sub regional, regional and international activities around the world. Each institution has an important role in reducing critical gaps in financing, jointly developing with governments an adequate political and regulatory environment, create the technical competencies, strengthen institutions and become a catalyst for investments in new economic, social and environmental sectors. IDFC members are key actors in the cooperation with governments, the private sector and civil society for the progress of a sustainable development agenda.

http://www.idfc.org/