29 October 2015
EBRD President: Effective State, Private Sector Focus are Key for SDGs
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Partnerships between the state and the private sector are crucial for financing and achieving the Sustainable Development Goals (SDGs), said European Bank for Reconstruction and Development (EBRD) President Suma Chakrabarti in an address at the London School of Economics (LSE).

He identified an effective state and an emphasis on the private sector as “the twin instruments for driving economic development.”

EBRD27 October 2015: Partnerships between the state and the private sector are crucial for financing and achieving the Sustainable Development Goals (SDGs), said European Bank for Reconstruction and Development (EBRD) President Suma Chakrabarti in an address at the London School of Economics (LSE). He identified an effective state and an emphasis on the private sector as “the twin instruments for driving economic development.”

While EBRD has a public policy mandate, Chakrabarti explained, it focuses on the private sector. He highlighted three unique features of EBRD that will enable it to foster partnerships between the state and private sector in countries where it invests: a focus on helping countries transition to open markets; a focus on the private sector as the motor of development, with 80% of EBRD’s lending going to the private sector; and a focus on companies rather than government agencies. He also noted EBRD’s focus on inclusion and bringing women and other excluded groups into the workforce, and its experience in reducing waste, lowering carbon emissions and promoting sustainable energy.

During his lecture, organized by LSE’s European Institute, on 27 October 2015, Chakrabarti outlined how partnerships between the state and private sector can address infrastructure and energy efficiency, including climate finance products and renewable energy opportunities across sectors and countries.

A common purpose shared by the public and private sectors is critical to deliver on the SDGs, Chakrabarti said. However, he observed, some countries lack dialogue between the state and the private sector. He recommended clear rules for how the state interacts with the private sector for markets to function well and real partnerships to form, and suggested establishing independent Investment Councils to provide a platform for public-private dialogue and to share ideas on how to remove or lower obstacles in the business environment. EBRD already sponsors six such Investment Councils, he said.

He added that reform and better governance – both in the state and private sector – is crucial for achieving the SDGs, and offered EBRD’s leverage as a financial investor and expert, in providing a “nudge” this regard. [EBRD Press Release] [EBRD President Statement] [Event Details]

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