The first Russian-Italian online forum “Development Banks on the Threshold of New Opportunities” was held at the Department of Finance and Banking in cooperation with the European Institute for Political, Economic and Social Studies (EURISPES) and the Russian-Italian Coordinating Council for the Business Ethics
Prominent representatives of both Russian and Italian scientific and economic communities spoke at the forum.
Marco Riccieri made a presentation on “The Role of Multilateral Development Banks (MDBs) in Sustainable Development”. It is important to adapt development banks to new conditions, in particular, to customer relations: Italian banks are not ready for new realities; there is confusion between social responsibility and sustainable development. It is necessary to understand the assessment methods of development banks – a tool that allows development banks to understand the new challenges they face.
Roberta Ciampo presented a report on “Sustainable Assessment Models of the Asian Infrastructure Investment Bank and the New Development Bank. Key elements and comparison”. The sustainable development goals set by the United Nations are among the main objectives of the Asian Infrastructure Investment Bank. One of the principles of project implementation is the sharing of responsibilities between the public and private sectors. However, 95% of financing is allocated from public funding. Speaking about the New Development Bank, it should be noted that it is based on a few pillars – several projects. His approach initially differed from the western model precisely in the absence of mandatory conditions, and he always promotes the development of horizontal connections. The BRICS countries, in turn, have always encouraged the “no-conditions” rule. It’s one of the banks that is building its operations for the long term.
Jan Martin Rossi made a presentation on “Sustainable Assessment Models Used by the European Investment Bank. Key elements.” This bank is an innovator, applying a new strategy of making deals – loans are granted only if there are other sources of financing, which is stipulated in the bank’s charter. The approval mechanism is based on 3 main points: 1 – contribution assessment for the whole EU and individual countries, 2 – expected results and 3 – social benefits. There are 2 other factors involved in sustainable development: environmental and social standards and a comprehensive legal review by the bank, which sets it apart from other development banks.
Ludovico Semerari touched upon the topic of “Sustainable Assessment Models of the European Bank for Reconstruction and Development and the African Development Bank. Key elements and comparison.”
The speaker gave a comparative model of the foundations and sustainable development of these banks. While the African Bank takes into account the benefits for the population as a whole, the EBRD takes into account the individual aspect of influence on every individual.
The African Bank has a policy of improving the lives of the people of the African continent, taking into account the environmental dimension, while the European Bank has a policy objective of developing market economies and social institutions.
Roberto Ridolfi touched upon the theme “Sustainable development in the context of mixed finance.”
The speaker noted that subsidies and grants used for sustainable development make financing more flexible, providing an opportunity to generate higher income in the long term.
Abel Gezevich Aghanbegyan told me how to “jump” from crisis to growth. The crisis that is happening now can be called, above all, social. According to the speaker, GDP will decline by 6-8%, which matches the forecasts of the Accounts Chamber. At the same time, unemployment will jump from 4 million to 7-10 million people, while real incomes will drop by 8-10%. It is necessary to create conditions for investments in human capital and socio-economic growth.
Konstantin Korishchenko covered the topic “Post-Pandemic Economy: a great depression or a growth point?” The speaker explained why gold and the dollar are “eternal kings.” However, he noted that the American economy is on the verge of a new crisis, which will come in November this year after the elections. Taking into account the current conditions, the way out of the crisis and the new reality may be the spread of marketing platforms, as well as the introduction of digital currency by the Central Bank. Konstantin Korishchenko noted the need to introduce “digital portrait” in modern conditions. Many companies have noted that there is no longer a need for constant physical presence in the office, moving the major part of work to a remote format. Besides, the format of the work is changing.
At the end of the event Galina Fomina, Director of the Financial Diplomacy Center at the Department of Finance and Banking, thanked all participants and noted the importance and relevance of the topic. She made a proposal to make the forum an annual platform for dialogue on sustainable development, and to create a joint Russian-Italian working group.