On Saturday, August 2, 2014, Ethiopia hosted an experts’ seminar at the UN Economic Commission for Africa to assess the establishment of a Regional Development Bank (RDB) for Intergovernmental Authority on Development (IGAD). The seminar was organized by the Horn Economic and Social policy Institute (HESPI) and IGAD.
Different experts of the sector in the region attended the seminar. Chief Economic Advisor to the Prime Minister of Ethiopia and Executive Director of the Ethiopian Development Research Institute (EDRI), Neway Gebreab, was one of the experts that attended the seminar.
Neway addressed the attendants, establishing a RDB for IGAD is an important as well as innovative idea. He further explained the merits of establishing such an institute by stating the fact most IGAD member countries are land locked and face different development challenges such as climatic and security problems.
According to The Reporter establishing an RDB will enhance infrastructure development and cooperation. The Newspaper furthered, it will play a pivotal role in creating cohesion between the economic communities of the Region. This in turn will make a significant contribution to ensure regional and international peace and security by using all inclusive and sustainable development.
A paper by the title “Establishing a Development Bank for the IGAD Regional Economic Community”, was also presented during the seminar by Haile Kebret (Ph.D.). The Paper explained advantages IGAD members will get from establishing RDB.
The paper noted the major rationale behind establishing RDB is the fact, compared to other regions of Africa, the financial sector is underdeveloped in IGAD and the provisions of loans that IGAD member countries receive is likely to have less confidentiality and less pressure to meet rigid policy prescriptions (privatization, choice of exchange regimes, and other austerity measures).
It added, another rationale is the low domestic saving which has caused a financing gap. Establishing DRB will make possible financing regional integration by enhancing projects and hence likely to foster cooperation for a common purpose and so on.
The Horn Economic and Social Policy Institute is an autonomous, nonprofit institute established in 2006, with a regional institute of excellence and point of reference in socio-economic policy research, advocacy, and institutional capacity building.
Source: The Reporter
