Anchor Countries, International Public Goods and Financial Stability

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Anchor Countries,International Public Goods
and Financial Stability
Gerhard Ressel4 July 2008
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How We Define

• Anchor Countries
• middle income countries with large populations
• with increasing economic weight
• increasingly taking part in international
  political processes
• key role for global poverty reduction
• key role for the provision of regional and global
  public goods

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Anchor Countries

• German development cooperation with
• Brazil, China, Egypt, India, Indonesia, Mexico,
  Pakistan, Nigeria, South Africa
• No current development cooperation with
• Argentina, Iran, Russia, Saudi Arabia, Thailand,
  Turkey

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Anchor countries new thematic orientation

• From cooperation to strategic partnership
• Thematic refocussing poverty reduction, social
  cohesion, good governance, global and regional
  public goods (environment, peace and security)
• Cooperation with multilateral donors (e.g. World
  Banks MIC / IBRD Partner Countries Strategy)
• Strategic partnerships (intensify political
  dialogue, common initiatives for global and
  regional problems)
• Coherence of German Cooperation (e.g. rule of law
  dialogue with China BMZ, BMJ dialogue on energy
  efficiency with India BMZ, AA, BMWi, BMU)

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Anchor country strategy an outline
Cooperation with anchor countries

• upgrading of the cooperation portfolio with
  regard to regional and global challenges, global
  public goods, regional cooperation
• adjustment of instruments(knowledge brokers,
  financing instruments)
• triangular coop.

• network building
• intensify dialogues

• interchange of management staff and scientists/
  academics
• training programme Managing Global Governance
  (MGG)

Strategic alliances with EU/ other donors -
Cooperation with other ministries
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How would financial sector development and
financial stability fit in the concept?

• What is similar?
• Like environment and security, financial
  stability is an important regional and global
  public good
• What is different?
• Financial Stability is predominantly business of
  BMF(as well as Bundesbanks and BAFins) BMF
  conducts a formal dialogue with anchor countries
  via G20 Initiative Bundesbank represents Germany
  in BIS, BMF, Bundesbank and BAFin in the FSF
• Core business of BMZ and its front end
  organisations (KfW, GTZ, ) is financial sector
  development. Policy dialogue is one of InWEnts
  areas of expertise. DIE provides applied
  scientific analyses.

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How would financial sector development and
financial stability fit in the concept?

• It does fit in, but perhaps somewhat more
  loosely.
• Financial development and stability issues are
  intertwined.
• Next steps
• Continue dialogue and network building
• Depending on demand upgrading cooperation
  portfolio, training, staff interchange,
  triangular cooperation

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Thank You!