Vice Premier of People’s Republic of China
Chairman of the Board of Governors
Distinguished Members of the NDB Board of Governors and Heads of Delegations
President of NDB,
Ladies and Gentlemen
At the outset, I take this opportunity to congratulate NDB and the People’s Republic of China for organizing this 8th Annual meeting of Board of Governors.
A series of global crises have sent shock waves through the economies of the world, devastated multiple livelihoods across continents and made the timely achievement of the Sustainable Development Goals even more challenging.
Considering the gradual contraction in the global output growth rate and the sharper-than-expected slowdown of global economic activities in 2023, coupled with rising interest rates, high inflation, and the persistence of the COVID-19 pandemic, the IMF has revised the global GDP growth rate downwards from 3.4% in 2022 to 2.8% in 2023. The cascading impacts of the ongoing multiple -crises are disproportionately affecting the emerging market and developing economies (EMDEs) including those of the NDB member countries.
Unprecedented times call for extraordinary policy action. The need of the hour is to innovatively reimagine our existing policy structures, establish a coordinated system to respond to short-term volatilities, invest in new technologies and adopt people-centric agenda towards achieving SDGs and fostering inclusive and sustainable growth.
Despite all the present challenges, India has been able to manage the uncertainties and is projected to be the fastest-growing major economy in the world in 2023 with a real GDP growth rate of 5.9%.
Through the G20 Presidency, we are focused on collaborative work to resolve challenges , promote sustainable and environmentally friendly lifestyles, digital tools for innovations, push for reforms in MDBs, and focus on building resilient infrastructure to expand global growth and development. As envisioned in the G20 theme of One Earth, One Family, One Future, India is emphasizing inclusive, action-oriented, ambitious, and decisive methods to tackle economic uncertainty.
India has adopted sound policies which have enabled us to respond well during crises. India’s rising global profile is in part the result of several recent accomplishments. These include the use of innovative technologies to develop effective vaccines that have contributed to global vaccination efforts against COVID-19; the establishment of world-class digital public infrastructure through our Unified Payments Interface or UPI the adoption of Aadhaar- the largest biometric identification program in the world. India has adopted an ambitious program for the achievement of climate-related goals and the preservation of the environment through collective action under the mission LiFE (Lifestyle for Environment) movement, and in promoting policies on increasing investments in alternative technologies to ensure a just energy transition.
MDBs play a critical role both as a facilitator of knowledge keeping and transference as well as an important financier of sustainable financing. In this regard, I take this opportunity to share some thoughts on how best MDBs including New Development Bank can further contribute to the global development agenda:
Effective collaboration with multiple stakeholders including bilateral and multilateral agencies, local and national governments, and the private sector can contribute to the creation and dissemination of knowledge and best practices. As NDB is currently the head of MDB groups we look forward to enhancing cross-MDB collaboration for financing Global Public Goods and public digital infrastructure on a large scale.
MDBs are well placed to re-institute stability, confidence and growth amid crisis. They have the capacity to mobilize additional funds through private capital mobilization and innovative financing mechanisms (such as blended finance and co-financing arrangements).
MDBs need to Accelerate investments in climate-smart infrastructure; green hydrogen, low-cost energy; emerging technologies such as Artificial Intelligence, and Machine Learning; explore new ways of intensifying digital inclusion; and contribute to inclusive and equitable growth.
Additionally, undertaking the Capital Adequacy Framework reform is critical for MDBs to expand the lending envelope for enhancing development impact. Further, the use of various risk transfer instruments such as hybrid capital, synthetic securitization, promoting local currency financing, and issuance of thematic bonds for impact investments is crucial.
In these difficult times, I take this opportunity to applaud NDB and its management for the new General strategy 2022-26, which has brought to the fore the NDB’s drive to achieve its development agendas. NDB has the potential to bring transformative scale to global sustainable development financing.
Indeed NDB has emerged as a premier institution for development finance. As a young bank, it has its challenges but we are confident that under the dynamic leadership of the new President, NDB will emerge stronger and more transformative in the coming years meeting both the financing and the aspirational needs of member countries.
Finally, let me assure our cooperation and support to NDB in future endeavors.
Thank You.