| Author (Person) | Thomson, Ian |
|---|---|
| Publisher | ProQuest Information and Learning |
| Series Title | In Focus |
| Series Details | 27.5.00 |
| Publication Date | 27/05/2000 |
| Content Type | News, Overview, Topic Guide | In Focus |
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Background The introductory words on the website of the European Bank for Reconstruction and Development (EBRD) gives a concise overview of the background, objectives and geographical coverage of the Bank:
The EBRD seeks to help its 26 countries of operations to implement structural and sectoral economic reforms, promoting competition, privatisation and entrepreneurship, taking into account the particular needs of countries at different stages of transition. Through its investments it promotes private sector activity, the strengthening of financial institutions and legal systems, and the development of the infrastructure needed to support the private sector. The Bank applies sound banking and investment principles in all of its operations. In fulfilling its role as a catalyst of change, the Bank encourages co-financing and foreign direct investment from the private and public sectors, helps to mobilise domestic capital, and provides technical cooperation in relevant areas. It works in close cooperation with international financial institutions and other international and national organisations. In all of its activities, the Bank promotes environmentally sound and sustainable development. The Bank is not a formal EU Institution or agency, although the EU itself, the individual Member States of the EU and the European Investment Bank together hold 51&percent; of the shareholding of the EBRD. Other countries such as United States and Japan are also shareholders. The Bank currently has sixty members, which comprise fifty eight individual countries, the EU and the European Investment Bank. The members comprise both countries and bodies which lend to the Bank and countries which borrow from the Bank, the latter being called the 'countries of operation' Those countries comprise:
Mongolia was accepted as a new member at the annual meeting in Riga. Reflecting, to an extent, the French inspired origins of the Bank three of the four Presidents of the EBRD in its first ten years have been French: Jacques Attali, Jacques de Larosiere and, since the annual meeting in May 2000, Jean Lemierre. The fourth President was Horst Köhler, from Germany, who has recently left to become the Managing Director of the International Monetary Fund (IMF). The Bank is based in London. Its equity capital is currently 20 billion euro. The EBRD has had a somewhat eventful first decade. Its very reason for existence has been queried at times. It has been suggested by some that existing bilateral channels and international agencies such as the International Monetary Fund, World Bank and the European Investment Bank are sufficient and that there is no need for yet another international body. Its early years were affected by the perception of extravagance brought about by the activities of its first President Jacques Attali. At times the Bank has had difficulty finding legitimate projects to lend to: projects need to be based on sound banking principles, support the transition process and be additional to what the private banking sector would be prepared to lend to. Environmental implications of the Bank's actions have also been an issue. The financial crisis in Russia had a significant negative impact on the Bank balance sheet. Nevertheless, the EBRD is now firmly established as playing a legitimate and useful role in Eastern and Central Europe and in the CIS. In 1999 the Bank adopted refocused operational priorities, Moving Transition Forward, [pdf]. Unlike most banks the EBRD has a strong political mandate that operates alongside its economic priorities. Further background information on the EBRD can be obtained from:
The text of the key formal documents setting up the Bank, its bye-laws and rules of procedure are available. The key legislation adopted by the EU since 1990 in connection with the EBRD is available on EUR-LEX: Primary legislation: 294A0803(01) Secondary legislation: 398D0381 The EBRD's annual meeting, Riga, 21-22 May 2000 The Annual Meeting of the EBRD provides the Board of Governors with the opportunity to meet in accordance with the Agreement Establishing the EBRD. Attendees include Ministers of Finance (or their representatives), EBRD Governors from all member countries and representatives of Central Banks. The meeting is seen as one of the important financial fora of the year. The occasion is also used to organise a Business Forum. This promotes investment and business opportunities in the EBRD's countries of operations to the large number of people from the international banking and business community who attend the Annual Meeting. The annual meetings usually alternate between London and a country of operation. The first Annual Meeting to be held outside London took place in Budapest in 1992, followed by St.Petersburg in 1994, Sofia - 1996, Kiev - 1998 and Riga in 2000. Future annual meetings take place in London (23-24 April 2001), Bucharest (20-21 May 2002), Tashkent (5-6 May 2003) and London (19-20 April 2004) Further details of the function and organisation of the EBRD annual meeting in 2000, the theme for which was 'Investment, Trade and Cross-Border Cooperation' is available. The key speeches and contributions made at the annual meeting are available:
In his closing speech the Chairman of the Board of Governors said that the main achievements of the meeting were:
Themes covered during the meeting included:
Challenges outlined for the future included the continuing scrutiny of the role of international financial institutions. It was said that the EBRD must be open and accountable and must reach out to civil society to disseminate information about the Bank's activities. Governors also stressed the importance of increased cooperation with other international financial institutions (IFIs), and its partnership with bilateral and multilateral donors. Collaboration with the European Investment Bank was considered essential, to ensure best advantage was taken of each institutions strength and areas of comparative expertise. Special attention would be paid to the environmental aspects of the EBRD's mandate. There was satisfaction that the Bank has undertaken the task of administering the International Decommissioning Support Funds for nuclear power plants, in three EU accession countries. The EBRD's commitment to the Chernobyl Shelter Fund was also welcomed. Several Governors also referred to what was described as 'the bottom line of transition'. It was vital that transition improves the well-being of ordinary people, and, consequently, that there should be no retreat from the reform course embarked upon in the last few years. Further information on the 2000 annual meeting of the EBRD can be seen in the following sources:
The EBRD as a source of information Through its publications programme, the EBRD makes available a considerable amount of information about its organisation, its operational strategy and its assessment of the economic climate in its countries of operations. The Bank also releases information about its operations and other matters of interest to the public. Many EBRD publications are available in French, German and Russian as well as in English. Much of the EBRD's printed information is also available on the web in HTML or PDF format. Printed copies of EBRD publications are available from the Bank's Publications Desk, which forms part of the Communications Department. Key publications include:
Further information within European Sources Online: Practical guide to foreign direct investment in the European Union (Euroconfidentiel, 2000): European Bank for Reconstruction and Development European Sources Online: European Voice, 11.4.96: Further information can be seen in these external links: (long-term access cannot be guaranteed) European Commission: DG Enlargement European Commission: DG Economic and Financial Affairs: European Economy: Supplement C: Economic situation and economic reform in the candidiate countries European Commission: DG External Relations: The EU's relations with:
European Commission: DG External Relations: Nuclear safety in CEC and CIS European Commission: DG External Relations: TACIS European Commission: DG External Relations: The EU and South Eastern Europe European Commission: Press and Communication Service: Press Releases and Speeches:
For further earlier and subsequent Press Releases and Speeches carry out a search on RAPID , insert EBRD in the title field and click on 'No date'. BBC News: , 11.3.99: EBRD announces huge losses BBC News: 17.4.99: EBRD annual meeting BBC News, 8.11.99: The Economy: Eastern Europe picks up Further and subsequent information on the subject of this week's In Focus can be found by an 'Advanced Search' in European Sources Online by inserting 'European Bank for Reconstruction and Development or 'EBRD' in the keyword field.
Ian Thomson The annual meeting of the Board of Governors of the European Bank for Reconstruction and Development took place in Riga, Latvia on 21-22 May 2000. |
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| Countries / Regions | Eastern Europe |
