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ONLINE<br />
Investing in infrastructure<br />
Read more at g7g20.com about<br />
the New Development Bank<br />
ALENMAX \ISTOCK PHOTO<br />
ISTOCK PHOTO<br />
Solar panels maintained with<br />
a wet sponge in New Delhi, India<br />
Construction on a residential building in Saint Petersburg, Russia<br />
will be rapid and cost structures will be<br />
dramatically different from those today. The<br />
need for speed in our institutions is critical.<br />
We will build on the existing framework<br />
and with the help of innovate partnerships,<br />
services, people and products.<br />
We will foster adoption of green<br />
infrastructure. Sustainability practices<br />
are now mainstream. Technological<br />
advancements mean going green is a<br />
commercial requirement, not a moral one.<br />
Developing countries are leapfrogging<br />
in their adoption of green technology<br />
especially sustainable green energy access.<br />
We will accelerate deploying funds for green<br />
investment and seek knowledge flows from<br />
existing MDBs.<br />
We recognise the importance of<br />
building on the existing framework and<br />
acknowledging the work done by MDBs.<br />
They have successfully funnelled resources<br />
for development with limited shareholder<br />
contributions. They have also lent their<br />
technical expertise in infrastructure design<br />
and utilised best practices and adherence to<br />
basic standards.<br />
We are conscious of the destabilising<br />
effects of currency misalignment. To<br />
insulate our borrowers from volatile<br />
currency movements we will promote local<br />
currency lending and develop domestic<br />
capital markets. We are living in times<br />
with record-low interest rates and ample<br />
global liquidity. MDBs should seize this<br />
opportunity to collaborate, pool their<br />
resources and deliberate on how to increase<br />
funding bases to provide the necessary<br />
resources to meet infrastructure needs.<br />
Forming partnerships<br />
Governments are the main drivers of<br />
development. They can provide a thrust<br />
by developing a robust project pipeline.<br />
MDBs may not be subject to national<br />
regulations, but they are subject to oversight<br />
by rating agencies, which need to evolve as<br />
well. MDBs with sovereign shareholders,<br />
preferred creditor status and higher<br />
liquidity requirements function on a lower<br />
leverage ratio and in a tighter operating<br />
environment than commercial banks.<br />
We will partner with central banks and<br />
create new channels for currency swaps<br />
among our member countries. We look<br />
forward to working closely with our member<br />
governments, central banks and rating<br />
agencies in advancing our agenda.<br />
The New Development Bank affirms<br />
our support of the <strong>G20</strong>. We will strive to<br />
add value as we underpin a holistic and<br />
sustainable development agenda, listen,<br />
learn, innovate and collaborate. We will<br />
drive the development agenda and be the<br />
partners of change. <strong>G20</strong><br />
NEW LOANS<br />
New Development Bank loans<br />
announced this year<br />
Brazil<br />
$300M<br />
India<br />
$250M<br />
South Africa<br />
$180M<br />
China<br />
$81M<br />
G7<strong>G20</strong>.com September 2016 • <strong>G20</strong> China: The Hangzhou Summit 127
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