Beijing D20 Meeting 2016
Beijing, 27 May 2016
Statement of Heads of G20 Financial Institutions with a Development or Public Mandate (D20) Conclusions of D20 Annual Conference 2016
The 2016 Annual Conference of Group of Twenty (G20) financial institutions with a development or public mandate (D20) hosted by China Development Bank (CDB) kicked off in Beijing today. Focusing on the theme of 2016 G20 summit “Towards an innovative, invigorated, interconnected, and inclusive world economy”, the conference discussed the role of medium and long-term investment and financing in promoting innovative and inclusive growth, and published a joint statement offering guidance for the G20 Finance Ministers and Central Bank Governors Meeting.
Shi Yaobin, Vice Finance Minister, Chen Yulu, Deputy Governor of People's Bank of China, Hu Huaibang, Chairman of CDB, Franco Bassanini, Chairman of the Long-term Investors Club (LTIC), and Werner Hoyer, President of the European Investment Bank (EIB) delivered speeches at the opening ceremony chaired by Zheng Zhijie, President of CDB. Representatives from the Ministry of Industry and Information Technology, the Chinese Academy of Social Sciences, the Development Research Center of the State Council, and the State Council Leading Group Office of Poverty Alleviation and Development, as well as member banks of the D20 and the LTIC attended and spoke at the conference.
As noted by Hu Huaibang in his speech, since its establishment in 2013, the D20 has carried out in-depth discussions on implications of the new international regulatory agreement on development finance institutions and their roles and participation mechanism in long-term investment and financing. The discussion outcome has provided useful guidance for the G20 Finance Ministers and Central Bank Governors Meeting, increasing the influence of development finance institutions under the G20 framework, and showing directions for their future work. The discussions at this annual conference on the role of medium and long-term investment and financing in promoting innovative and inclusive growth coincide with the theme of the 11th G20 summit to be held in Hangzhou, and are expected to provide significant implications for addressing issues under the current economic context.
Innovation serves as one of the most important catalysts for development, added by Hu Huaibang. To serve economic restructuring and the real economy development, financial innovation is needed concurrently with technological innovation, aiming to provide strong financing support for implementation of innovation-driven strategies and development of innovation-based enterprises. Common economic development is central to inclusive growth. Undertaking the mission to support common development, development finance institutions should leverage middle and long-term investment and financing to offer public goods and quasi-public goods for infrastructure, housing, education, and medical care, providing equal access to basic public services, and helping reduce wealth gaps and absolute poverty and foster inclusive development.
Hu Huaibang introduced the main practices and achievements of CDB in supporting innovation and poverty relief, adding that development finance, as a key component of the financial system, plays an irreplaceable role in promoting economic and social development. CDB looks forward to communicating with different institutions through platforms such as the LTIC and the D20 to explore the operation rules of development finance, strengthen business cooperation, and actively contribute to a robust world economy, and inclusive and sustainable growth.
According to the joint statement published at the conference, innovation and inclusive growth are two fundamental drivers to boost world economy. In the current economic downturn, strategic public infrastructure is playing a vital role in promoting economic growth and employment. Medium and long-term development finance institutions should work with private sector to support cooperation in cross-border projects through financing and leveraging intelligence, and provide other countries with services in development planning, consulting, education and training for clarified designing of roadmaps with specific goals, and active enhancement of capacity-building.
D20 was established in 2013, reportedly under the proposal by Vnesheconombank (VEB) which received positive response from G20 financial institutions with a development or public mandate. Its mission is to strengthen G20 cooperation by providing policy proposal on long-term finance and investment. CDB is one of the founding members of D20. Currently, there are 18 members in the D20, including CDB, EIB, Kreditanstalt fur Wiederaufbau (KfW), Argentine Bank of Investment and Foreign Trade, Brazilian Development Bank, Caisse des Dép?ts et Consignations (CDC), Development Bank of Japan and VEB. This year’s conference is the fourth annual conference of D20.
During the conference, the LTIC Steering Committee meeting elected Hu Huaibang and Mr. Bassanini as Co-Chairs and reviewed the D20 conference statement. The LTIC was officially established by CDC, KfW, EIB and Cassa Depositi e Prestiti (CDP SpA) in April 2009. CDB was invited to joining the LTIC in July 2009. The LTIC consists of 19 associated institutions, gathering the world’s leading long-term investors which manage a total asset exceeding 5 trillion USD.