Seminar Report
Moderator: Gillian Tett, US Managing Editor, Financial Times
Panelists:
Christine Lagarde, Managing Director, IMF
Gloria Alonso, Director of the National Planning Department, Colombia
Paschal Donohoe, Minister of Finance, Ireland
Nicolas Dujovne, Minister of the Treasury, Republic of Argentina
Vera Songwe, Executive Secretary of the United Nations Economic Commission for Africa
Investments in physical and social infrastructure are badly needed in both advanced and developing countries, but how do we finance infrastructure while avoiding the perils of a rising public debt burden? The discussion centered around how best to boost infrastructure investment to meet development needs without harming fiscal sustainability.
Key Points:
· Challenges of boosting public investment. Lagarde stated that there is a clear shortage of public investment in both advanced and developing economies. Dujovne noted that only a small portion of the available finance goes to infrastructure in Argentina. Alonso noted that Columbia has done a good job in reducing poverty, but major challenges exist in more efficiently using the budget to improve the quality of public services.
· Both investments in physical and social infrastructure are critical. Lagarde emphasized that the need for investment is not only in tangible infrastructure but also in intangible infrastructure. Donohoe noted that population growth may result in a big gap in infrastructure and Ireland has put together a long-term plan to manage capital expenditure for financing both physical and social infrastructure investments.
· Mobilizing all available funding sources. Lagarde stressed that to meet the huge gap in infrastructure investment, countries need to mobilize all available funding sources. Songwe recalled that the big financing gap to meet the SDGs in Africa cannot be solely filled by international aid. Domestic savings including pension funds have not been adequately mobilized and the tax base can be further strengthened. Dujovne noted that the major impediments to financing infrastructure include lack of bankable projects, standardized contracts, good data and capacity in assessing long-term risks.
· Leveraging private investment. Donohoe noted that governments need to use public investments to provide certainty and confidence to the private sector. Both Lagarde and Alonso observed that macro-economic stability and the establishment of a favorable business environment are key to attracting private sector investment. Alonso noted that Colombia has been working on creating certainty through the use of fiscal rules, regulatory reforms, and long-term budget objectives. Dujovne stated that Public-Private Partnerships (PPPs) need to be used wisely, coordinated appropriately, subject to clear standards and cost-benefit assessments, as well as prioritized based on its impact on citizens.
· Improving the governance of infrastructure investment. Lagarde noted that the Public Investment Management Assessment (PIMA) tool has been used effectively in many countries and that the Fund will continue to support efforts to improve governance. Alonso noted that while external audits are important, internal audits are even more important. Songwe emphasized that while more standardized processes have been established for the project procurement, internal audits, transparency, and accountability are essential in the execution stage.
Quotes:
“We need to encourage investment with the right focus on the right project properly managed from the market perspective.” Christine Lagarde
“We need to connect our regions, we need to connect our people to the market, and we need to connect the central and regional budgets to make it more efficient for investment.” Gloria Alonso
“Try to deliver policy certainty that goes beyond individual government…that can play a very important role in mobilizing the private sector.” Paschal Donohoe
“The wise use of public-private partnerships is an important tool to help renew our infrastructure and bring down our fiscal deficit.” Nicolas Dujovne
“The good news is we can do better in Africa if we raise tax revenues by increasing the tax base through the use of new technologies.” Vera Songwe
Contributor: Bo Zhao
Investing in people helps them share in the benefits of economic growth and technological progress. Investing in infrastructure grows the pie that can be distributed to all. Public investment levels need to be raised in countries at all levels of development. But investment needs must be met without harming fiscal sustainability. Improving the governance of infrastructure investment is key to increasing its value for money. This seminar panel will explore how best to address these challenges.
Join the conversation: #FiscalForum
Moderator
Gillian Tett
US Managing Editor, Financial Times
Gillian Tett serves as US Managing Editor. She writes weekly columns for the Financial Times, covering a range of economic, financial, political and social issues.
In 2014, she was named Columnist of the Year in the British Press Awards and was the first recipient of the Royal Anthropological Institute Marsh Award. In June 2009 her book Fool's Gold won Financial Book of the Year at the inaugural Spear's Book Awards.
Tett's past roles at the FT have included US Managing Editor (2010-2012), Assistant Editor, Capital Markets Editor, Deputy Editor of the Lex column, Tokyo Bureau Chief, and a reporter in Russia and Brussels.
Panelists
Christine Lagarde
Managing Director, IMF
Christine Lagarde is a French lawyer and politician who has been the Managing Director (MD) of the International Monetary Fund (IMF) since 5 July 2011. Previously, she held various, senior ministerial posts in the French government: she was Minister of Economic Affairs, Finance and Employment, Minister of Agriculture and Fishing and Minister of Trade in the government of Dominique de Villepin. An anti-trust and labour lawyer, Lagarde was the first female chair of major international law firm Baker & McKenzie, between 1999 and 2004.
Gloria Alonso
Director of the National Planning Department, Colombia
Born in Bogotá, Gloria Amparo Alonso is an Economist from the Universidad de los Andes, with a master in economics from the Universidad Nacional and a master in Public Policy from Columbia University in the United States.
Her technical vocation, management capacity and passion for public service have led her to hold prominent leadership roles, both in the private and public sectors.
She worked for 20 years at Banco de la República (Central Bank of Colombia), where she served as head of the external, financial and macroeconomic programming sectors. Also serving as director of the Communication and Economic and Financial Education Department, Office of the Governor.
Between 2009 and 2012 she worked in the Ministry of Finance as the director of macroeconomic policy during the administrations of both Óscar Iván Zuluaga and Juan Carlos Echeverry. In September 2015, Edgardo Maya Villazón, the Comptroller General of the Republic, appointed Gloria Amparo Alonso to the position of Vice Comptroller General, the second-in-command in this control entity. Here she led the project of institutional strengthening and modernizations of the Contraloría (Office of the Comptroller), which adjusted the entity´s auditing practices to international standards.
In August 2018, President Iván Duque named her director of the Departamento Nacional de Planeación (National Planning Department), DNP, where she will participate in the major discussions on economic and development issues taking place in the country. In its 60 years of history, Gloria Amparo Alonso is the fifth woman to head the DNP.
Paschal Donohoe
Minister of Finance, Ireland
Paschal is the Fine Gael TD for Dublin Central and in June 2017 was appointed as the Minister for Finance & Public Expenditure and Reform.
Prior to his appointment as the Minister for Finance & Public Expenditure and Reform, he served, from May 2016-June 2017, as the Minister for Public Expenditure and Reform, and from July 2014-May 2016, as the Minister for Transport, Tourism and Sport. Paschal has also held the position of Minister for European Affairs at the Department of An Taoiseach and the Department of Foreign Affairs from July 2013-July 2014.
Paschal is a graduate of University of Dublin, Trinity College, with a degree in Politics and Economics and has attended St. Declan’s CBS, Cabra.
Nicolas Dujovne
Minister of the Treasury, Republic of Argentina
Mr. Dujovne holds a BA in economics from the Universidad de Buenos Aires and an MA from the Instituto Torcuato Di Tella. He worked for more than 10 years at Banco Galicia, the largest domestically owned bank of the country as the Chief Economist. He also served as a Government official: between 1997 and 1998 as the Chief of Advisors to the Secretary of the Treasury and in 1999 he was appointed as the representative of the Ministry of Finance at the Board of Directors of the Argentine Central Bank. Mr. Dujovne was also a consultant for the offices of the World Bank in Washington D.C and in Buenos Aires and director of Papel Prensa S.A. He was also a professor of “Topics of banking administration” at the Masters Program of the Universidad Torcuato Di Tella in Argentina. Currently serves as Minister of Treasury of Argentina.
Vera Songwe
Executive Secretary of the United Nations Economic Commission for Africa
Dr. Vera Songwe is an Under-Secretary-General of the United Nations and is the Executive Secretary of the Economic Commission for Africa. It is the first time in the Commission’s 60-year history that a woman has held the top leadership position. Listed by Forbes in 2013 as one of the “20 Young Power Women in Africa”, Dr. Songwe was also chosen by the Institut Choiseul pour la politique internationale et la géoéconomie (France) as one of its “African leaders of tomorrow” and has been included in the “Top 10 Female Business Leaders in Africa” published by the African Business Review in 2014. Dr. Songwe was named among the “100 Most Influential Africans of 2017” in the New African Magazine. She has a long-standing track record of providing policy advice and being instrumental in the results-oriented implementation of policy in the region and has published widely on governance issues, innovative finance and fiscal policy issues. One of Dr. Songwe’s most compelling qualities is her demonstrated strategic vision for the continent.
Previous appointments include: Regional Director for West and Central Africa at the International Finance Corporation; World Bank Country Director for Senegal, Cabo Verde, Gambia, Guinea-Bissau and Mauritania; and Adviser to the Managing Director of the World Bank for the regions of Africa, Europe, and Central and South Asia.
Dr. Songwe graduated from the Université Catholique de Louvain in Belgium with a Ph.D. in mathematical economics from the Center for Operations Research and Econometrics, an M.A. in law and economics, and a Diplôme d’études approfondies in economic science and politics. Dr. Songwe holds a B.A. in economics and political science from the University of Michigan and is also a graduate of Our Lady of Lourdes College in Cameroon.
Media Partners
Seminar Report
Moderator: Gillian Tett, US Managing Editor, Financial Times
Panelists:
Christine Lagarde, Managing Director, IMF
Gloria Alonso, Director of the National Planning Department, Colombia
Paschal Donohoe, Minister of Finance, Ireland
Nicolas Dujovne, Minister of the Treasury, Republic of Argentina
Vera Songwe, Executive Secretary of the United Nations Economic Commission for Africa
Investments in physical and social infrastructure are badly needed in both advanced and developing countries, but how do we finance infrastructure while avoiding the perils of a rising public debt burden? The discussion centered around how best to boost infrastructure investment to meet development needs without harming fiscal sustainability.
Key Points:
· Challenges of boosting public investment. Lagarde stated that there is a clear shortage of public investment in both advanced and developing economies. Dujovne noted that only a small portion of the available finance goes to infrastructure in Argentina. Alonso noted that Columbia has done a good job in reducing poverty, but major challenges exist in more efficiently using the budget to improve the quality of public services.
· Both investments in physical and social infrastructure are critical. Lagarde emphasized that the need for investment is not only in tangible infrastructure but also in intangible infrastructure. Donohoe noted that population growth may result in a big gap in infrastructure and Ireland has put together a long-term plan to manage capital expenditure for financing both physical and social infrastructure investments.
· Mobilizing all available funding sources. Lagarde stressed that to meet the huge gap in infrastructure investment, countries need to mobilize all available funding sources. Songwe recalled that the big financing gap to meet the SDGs in Africa cannot be solely filled by international aid. Domestic savings including pension funds have not been adequately mobilized and the tax base can be further strengthened. Dujovne noted that the major impediments to financing infrastructure include lack of bankable projects, standardized contracts, good data and capacity in assessing long-term risks.
· Leveraging private investment. Donohoe noted that governments need to use public investments to provide certainty and confidence to the private sector. Both Lagarde and Alonso observed that macro-economic stability and the establishment of a favorable business environment are key to attracting private sector investment. Alonso noted that Colombia has been working on creating certainty through the use of fiscal rules, regulatory reforms, and long-term budget objectives. Dujovne stated that Public-Private Partnerships (PPPs) need to be used wisely, coordinated appropriately, subject to clear standards and cost-benefit assessments, as well as prioritized based on its impact on citizens.
· Improving the governance of infrastructure investment. Lagarde noted that the Public Investment Management Assessment (PIMA) tool has been used effectively in many countries and that the Fund will continue to support efforts to improve governance. Alonso noted that while external audits are important, internal audits are even more important. Songwe emphasized that while more standardized processes have been established for the project procurement, internal audits, transparency, and accountability are essential in the execution stage.
Quotes:
“We need to encourage investment with the right focus on the right project properly managed from the market perspective.” Christine Lagarde
“We need to connect our regions, we need to connect our people to the market, and we need to connect the central and regional budgets to make it more efficient for investment.” Gloria Alonso
“Try to deliver policy certainty that goes beyond individual government…that can play a very important role in mobilizing the private sector.” Paschal Donohoe
“The wise use of public-private partnerships is an important tool to help renew our infrastructure and bring down our fiscal deficit.” Nicolas Dujovne
“The good news is we can do better in Africa if we raise tax revenues by increasing the tax base through the use of new technologies.” Vera Songwe
Contributor: Bo Zhao
