G20 china_web

Investing in infrastructure
$1TR
Annual infastructure investing
gap in developing countries
15%
Demand from developing
countries catered for by MDBs
KEY TAKEAWAYS
The New Development Bank
is led by developing countries
It is strongly committed to
utilising technology
KV Kamath
President
New Development Bank
KV Kamath is the President of
the New Development Bank,
established in 2015. He is the
former Chair of ICICI Bank and
Infosys Ltd and previously worked
with the Asian Development Bank.
In 2008 he was conferred the
Padma Bhushan, one of India’s
highest civilian honours. He has
also served as the President of the
Confederation of Indian Industry
(CII) and as Co-Chair of the World
Economic Forum’s Annual Meeting
in Davos.
www.ndb.int
The New Development Bank
opened its doors in Shanghai, China, in
July 2015. Established by the BRICS group
of Brazil, Russia, India, China and South
Africa, we began our operations with a
resolve to fund sustainable infrastructure
requirements in our member countries.
We believe we are the first institution of
global scope led by developing countries.
During the past year we have formulated
our policies and procedures, appraised our
first set of loans and issued our first onshore
green bond in renminbi.
In the last few years, the G20 has
addressed some of the important challenges
stemming from the global financial crisis
and has provided effective leadership in
enhancing confidence in the financial
markets. However, the global recovery
remains fragile. Downward risks and
uncertainties persist against the backdrop
of continued financial volatility.
There is a pressing need for the recovery
to be stable and resilient to economic
shocks. This next chapter of development
must unleash economic growth that is
inclusive and sustainable.
Estimates suggest that developing
countries face an annual infrastructure
investment gap of $1 trillion. Multilateral
development banks (MDBs) cater to only
about 15 per cent of this demand. If we
It supports the G20 and will strive
to innovate and collaborate
project the annual investment estimates
of $5-7 trillion to realise the Sustainable
Development Goals for infrastructure,
clean energy, water and sanitation, and
agriculture, based on the current trend
MDBs will have a limited impact. Given
the magnitude of this need, there is a
case for continued and concrete progress
on the reform agenda and broad-based
collaboration among stakeholders.
Technological advances
The New Development Bank is strongly
committed to incorporating technology into
everything we do. Technology is changing
fast and its adoption – especially in
developing countries – is even faster. With
close to three billion people connected to
the internet and a billion people owning
smartphones, people understand the issues,
people understand the solutions and people
understand the constraints.
There is growing impatience and the
demand for rapid development results will
only increase. We must make change more
visible. We must also avoid stereotyping and
backward-looking policies and procedures
steeped in the past.
We are conscious of this ongoing
transformation. We will align ourselves with
a world where the development ecosystem
will be driven by technology, obsolescence
126 G20 China: The Hangzhou Summit • September 2016 G7G20.com