June 11, 2013

Deutsche Bank gives input to future international development policy

Deutsche Bank provided input to a global initiative to update the UN Millennium Development Goals (MDGs) which expire in 2015. These goals aim to improve social and economic conditions in the world’s poorest countries. Incorporating environmental protection goals is also a focus for this work.

Delivering development outcomes in the decades ahead will require the mobilisation and effective allocation of significant amounts of both public and private capital, and the private sector will be a crucial partner in achieving this aim. The UN Secretary General’ High Level Panel on the post-2015 international development goals includes Paul Polman, CEO of Unilever, as one of two private sector representatives. This Panel is co-chaired by President Yudhoyono of Indonesia, President Johnson-Sirleaf of Liberia, and Prime Minister Cameron of the UK. Mr. Polman requested input from a number of business chief executives including Deutsche Bank.

The international community has made significant progress on the Millennium Development Goals. For instance: ´

  • Extreme poverty rates have been cut in half compared to 1990 but 870mn people still remain hungry
  • Enrolment in primary education in developing regions as reached 90% with equal numbers of boys and girls in schools but 61mn still remain out of school and women and minorities still face discrimination
  • 14,000 fewer children die each day but 6.9mn children still die before their fifth birthday
  • Maternal mortality has been reduced 47% since 1990 but is still 15x higher in developing regions than in developed countries
  • 8mn people are receiving medicine for HIV/AIDS and malaria deaths are down 25% since 2000 but 7mn still lack access to antiretroviral drugs and 80% of malaria deaths occur in just 14 countries
  • Some environmental impacts are being reduced but climate change and resource scarcity are increasing threats to global prosperity
  • Resources for medicine increased in 2011 despite the economic downturn but a widening gap in delivering assistance threatens progress on the MDGs

Financial services are fundamental to economic growth and development and private sector financial institutions have an important role to play in helping the world meet new international development goals focused on these areas.

Although widening access to financial services is an important driver for development, deeper and more vibrant domestic capital markets, or mechanisms to increase investment in critical physical and social infrastructure, also play a vital role in supporting development and environmental goals. The post-2015 Development Agenda cannot be delivered by the development finance community or private financial institutions working alone, but will require close collaboration between the public, private and non-profit sectors.

Governments should ensure that they mandate public institutions to leverage private capital effectively from both domestic and international sources. The response encouraged governments to make ‘success in leveraging private capital’ one of the key performance indicators for policies to address the post-2015 Development Agenda. Improving the overall flow and output of private and public funding for development should be a goal.

“Access to financial services is an important driver for development.”

Examples of how Deutsche Bank already assists with these objectives include how acting as the investment manager for the Global Climate Partnership Fund and the Africa Agriculture Trade and Investment Fund, the GET FiT clean energy initiative in Uganda, along with many of the initiatives of the our Foundations such as through microfinance, social venture funds and de-risking the impact investment sector. There are many other ways that the different finance we provide to clients involved in emerging economies also helps create economic growth.

Creating long-term, sustainable global economic growth will require open markets and active investment. Banks are critical to this goal through their support of businesses, from the smallest firms to the largest. The input encouraged policy makers to ensure that any approaches to regulatory reform are coordinated globally.

Other banks that provided input with Deutsche Bank included Barclays, Standard Chartered, Santander, Bank of America Merrill Lynch and BNY Mellon.

The UN High level panel recently published its report containing recommendations to the Secretary-General. The report recommended 12 new global goals and indicators such as:

  • Ending poverty
  • Empower Girls and Women and Achieve Gender Equality 
  • Achieve Universal Access to Water and Sanitation 
  • Secure sustainable energy 
  • Create a Global Enabling Environment and Catalyse Long-Term Finance

Deutsche Bank will monitor the international process for implementing these new development goals and will seek to provide input at appropriate points.

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