Protecting global public goods by strengthening the links between bilateral development cooperation and international financial institutions

Projec description

Title: Global measure: Protecting global public goods by strengthening the links between bilateral development cooperation and international financial institutions
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Global
Lead executing agency: German Federal Ministry for Economic Cooperation and Development (BMZ)
Overall term: 2015 to 2017

Context
Global public goods such as climate change mitigation, health and financial market stability are under threat worldwide. This is increasingly jeopardising sustainable poverty reduction as well as stable and equitable growth. International financial institutions play a key role in the provision of global public goods.

To better protect these goods, the German Federal Ministry for Economic Cooperation and Development (BMZ) plans to establish more effective links between bilateral activities and international financial institutions, particularly the World Bank and International Monetary Fund.

Objective
Lessons learned from bilateral and multilateral development cooperation are incorporated into Germany’s policy position on the protection of selected global public goods.

Approach
The global measure Protecting Global Public Goods by Strengthening the Links Between Bilateral Development Cooperation and International Financial Institutions focuses on three key areas of activity:

  1. Advising BMZ on the protection of selected global public goods
    The project advises BMZ on selected issues of global importance in this field, notably topics such as debt and equitable global economic growth, the economic consequences of natural disasters and pandemics, international financial market stability and climate issues from the perspective of international financial institutions.
  2. Harmonising bilateral and multilateral development cooperation
    The project supports dialogue between bilateral development cooperation actors and international financial institutions. Lessons learned from bilateral development activities are analysed and incorporated into BMZ’s steering function vis-à-vis the World Bank. Germany’s policy positions on selected global public goods are therefore strengthened within the World Bank and International Monetary Fund. At the same time, the World Bank’s insights are taken into account in the preparation and implementation of German bilateral measures.
  3. Advising BMZ on policy and strategy issues pertaining to international financial institutions’ position on the protection of selected global public goods
    The project supports the appropriate BMZ division in the analysis of topics relevant to the Ministry’s steering function vis-à-vis the World Bank and International Monetary Fund. The aim is to enable the World Bank and International Monetary Fund to address the challenges presented by selected global public goods.
The contributions of the measure are incorporated directly into BMZ’s policy positions and thus embedded in the strategies and concepts of the World Bank and other international financial institutions. German priorities are therefore strengthened in these institutions, and the provision of global public goods is improved. Worldwide targets on sustainable poverty reduction and stable and equitable global economic growth are more likely to be achieved through multilateral leverage effects. By strengthening the links between bilateral development cooperation and international financial institutions, the project has a developmental impact in partner countries, thus supporting sustainable economic, social and ecological development in these countries.

Contact

Helmut Müller-Glodde
helmut.mueller-glodde@giz.de