Ron Nechemia Chairman of the Board of Governors President of EurOrient Financial Group In his dual capacity as the Chairman of the Board of Governors and President of the EurOrient Financial Group (“EurOrient”), Ron Nechemia exercises overall responsibility for bankwide operations. He also serves as President of a group of four interrelated organizations, the institutions that make up the Bank Group, and as Chairman of the Administrative Council. Mr. Nechemia is a founding member of the EurOrient Financial Group and its various affiliate development financial institutions and the founding father of private sector development banking. Founded in 1988, the EurOrient Financial Group is a private sector global development finance institution accredited by United Nations General Assembly on Financing for Development. Its mission is to support the economic and social development efforts of the less developed countries as they seek achievement of internationally agreed upon development goals, including those contained in the Millennium Declaration, and to implement the recommendations of major United Nations conferences and summits. The goals lay out a blueprint for the EurOrient Financial Group, setting its priorities and measuring its results. EurOrient’s strategic priorities are aligned to advance the United Nations’ global priorities. Under the leadership of Mr. Nechemia, EurOrient Financial Group is undergoing a transformation from a relatively straightforward project financier institution into a full-fledged private sector global development bank (the “Bank” or the “Bank Group”) – the world’s second global development bank – positioned next to the World Bank Group and next to the preeminent regional development banks (MDBs1). It combines the characteristics of a multilateral development bank with those of a private financial institution. The Bank finances primarily public sector infrastructure projects through the provision of sovereign loans to developing countries. The Bank’s financial objective is not to maximize profit, but to earn adequate income to ensure its financial strength and to sustain its development activities. The Bank charges market-based rates or near-market-based rates for its loans. The Bank’s ability to intermediate funds from the international capital markets and to minimize its cost of borrowing for lending to its developing countries is an important element in achieving its development goals. Therefore, the Bank’s primary objective with respect to managing funding risk is to achieve and maintain its triple-A credit ratings objective and, thereby, maintains access to market funding as needed at the lowest possible cost. In line with this, Bank makes extensive use of financial instruments, including derivatives.
The term "multilateral development institutions" includes t h e W o r l d B a n k G r o u p , the European Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Multilateral Investment Guarantee Agency, t h e African Development Bank, t h e African Development Fund, the Asian Development Bank, the Inter-American Development Bank, t h e Bank for Economic Cooperation and Development in the Middle East and North Africa, and the Inter-American Investment Corporation.
Contributions to High-Level Policy Dialogues Mr. Nechemia's unique wealth of knowledge has earned him many international awards and recognitions. He has frequently been invited to consult and to advise in policy dialogues at the highest political levels of the United Nations, on financing for development and trade and investment issues. He has shared his views with world leaders including with heads of state and governments and officials of bilateral and multilateral organizations, such as the Bretton Woods Institutions – the World Bank and the International Monetary Fund (IMF) – the United Nations General Assembly, the United Nations Economic and Social Council (ECOSOC) and the World Trade Organization (WTO). Mr. Nechemia is a member of the UNCTAD Investment Advisory Council to the G-77+1 and UNECE2 PPP Business Advisory Board on infrastructure finance. The State Administration of Foreign Experts of the People’s Republic of China recognizes him as a foreign financial expert. He has frequently been invited to advise and lecture on behalf of governments, including those of the United States of America, the Republic of the Philippines, the People's Republic of China, the Republic of Korea and the State of California Department of Energy. Financing for Development As the founding father of private sector global development banking and as an original participant at the convening of the first International Summit on Financing for Development in March of 2002 in Monterrey, N.L., Mexico, Mr. Nechemia brings a unique historical perspective to policy dialogues about development. Mr. Nechemia was formally invited under the auspices of a United Nations General Assembly resolution (55/245A and B), in which the Assembly decided to convene the International Summit on Financing for Development; and, “Accordingly, and in pursuance of paragraph 11 of General Assembly resolution 55/245B, EurOrient Financial Group honorably was invited to participate.” His statement to the plenaries and the Monterrey Consensus provide a picture of the new global approach to financing development. He also participated in the Follow-Up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus, which led to the Doha Declaration on Financing for Development. Contributions to High-Level Policy Dialogue Mr. Nechemia’s expertise and focus of research are in the areas of aid effectiveness and innovative financing for development, within the context of •
additional commitments concerning innovative sources of financing for development further debt relief and International Public Goods;
better coordinated and more effective aid at the international level as well as implementation of the Monterrey Consensus on Aid Effectiveness, including more predictable, stable, flexible aid mechanisms (notably, trust funds and other flexible instruments that enables the Bank Group to engage in a wide range of partnerships and leverage development assistance at the country, regional and global levels, budget support, mitigation of exogenous shocks, aid untying and reform of international financial institutions);
The United Nations Economic Commission for Europe (UNECE or ECE) was established in 1947 to encourage economic cooperation among its member states. It is one of five regional commissions under the administrative direction of United Nations headquarters. It has 56 member states, and reports to the UN Economic and Social Council (ECOSOC).
reform of the international monetary and financial system and its implications for development”;
supporting rehabilitation, recovery and development efforts of developing countries with special needs and those facing humanitarian emergency situations”; and
enhancing the coherence and consistency of international monetary, financial and trading systems in support of development.
Boards, Committees, Councils and Public Bodies Mr. Nechemia is a member of the following boards and committees: • The Chairman of the Board of Governors of the EurOrient Financial Group; • The President of the EurOrient Financial Group. (In this capacity he also serves as President of a group of four interrelated organizations, the institutions that make up the Bank Group); • The Chairman of the Administrative Council of the EurOrient Financial Group; • UNECE3 PPP Business Advisory Board on infrastructure finance; • Member of the United Nations Investment Advisory Council to the G-77 + 14 (UNCTAD); • Member of the Advisory Committee to the Organization for Economic Co-operation and Development (OECD) on; International Investment and Multinational Enterprises (MNEs); Energy; Economic Policy; Environment; • Member of China Sub-committee for the World Trade Organization; and • Honorary Chairman of the U.S. Presidential Business Commission for the President of the United States under President George W. Bush. Awards and Recognitions Mr. Nechemia is a recipient of many national and international awards and recognitions for his work and contributions to development in less-developed countries. He was selected in 2001 by the Business Advisory Council of the National Republican Congressional Committee as the “California 2001 Republican of the Year” for his business accomplishments over the years. In 2002 he served as the State of California representative on the Presidential Business Commission in 2002 for President George W. Bush. Mr. Nechemia was selected as the National Business Advisory Council Honorary Chairman on May 20, 2003 and the Business Advisory Council Honorary Chairman for California on September 13, 2003. Mr. Nechemia is a recipient of the “Businessmen of the Year” award, which is presented to top business leaders who champion the free enterprise system. Vice President Dick Cheney presented Mr. Nechemia with the “2003 National Leadership Award” in recognition of outstanding service and commitment and specifically for his assistance and leadership in promoting a pro-business agenda, including tax reform and fiscal responsibility. Mr. Nechemia was nominated by the Business Advisory Council’s for the Award of “Businessmen of the Year” in
The United Nations Economic Commission for Europe (UNECE or ECE) was established in 1947 to encourage economic cooperation among its member states. It is one of five regional commissions under the administrative direction of United Nations headquarters. It has 56 member states, and reports to the UN Economic and Social Council (ECOSOC). The Group of 77 +1 is the largest intergovernmental organization of developing states in the United Nations. It provides the means for the countries of the South to articulate and promote their collective economic interests, enhance their joint negotiating capacity on all major international economic issues within the United Nations system and promote SouthSouth cooperation for development
2004. He was one of three nominees representing the State of California that year. The nomination recognizes top U.S. business leaders who have integrated business and financial success. Cover Story Interview “At the Epicenter: Where the Financial System Meets the Real Economy” (International Financing Magazine, November 28, 2008.) This interview with Mr. Nechemia, was selected by the editorial board of “International Financing Magazine” as one of the ten most Authoritative Articles published over the preceding decade. It was republished in 2012 in a special edition book commemorating the 10 year anniversary of the magazine. Mr. Nechemia’s forecast included a bleak sequence of events: homeowners defaulting on mortgages, trillions of dollars of mortgage-backed securities unraveling worldwide and the global financial system shuddering to a halt. These developments, he foretold, could cripple or destroy hedge funds, investment banks and other major financial institutions like Fannie Mae and Freddie Mac. While some viewed his comments to be overly pessimistic at the time, Mr. Nechemia’s predictions proved accurate in less than half a year. Other Selected Publications Mr. Nechemia has written and broadcast extensively on development, refugees and international financial and political matters. His work is frequently published in major international symposia and summits around the world. His overall message is that urgent efforts are needed to expand the social safety net and enhance protection of the poor and vulnerable, particularly in the areas of financing for development and in humanitarian relief efforts. Mr. Nechemia has a strong record of correctly analyzing market data and predicting economic events. On November 5, 2007, in a special interview to Viet Nam Television, he warned that Viet Nam was likely to face economic deterioration and challenges to maintain control of the stock market in the face of the boom in share prices. He further posited that a sudden reversal and capital outflows would jolt the economy and that, while the supply of securities had been increasing, demand had been even stronger, given limited outlets for savings. Mr. Nechemia’s predictions were stunningly accurate and these events did occur six months later. An article Mr. Nechemia submitted to “International Financing Magazine” in May of 2009 was included as an official “Input Document” for an event convened for United Nations Council on Trade and Development (“UNCTAD”) member states. The symposium was convened to discuss “The global economic crisis and development – the way forward.” Mr. Nechemia’s white paper, “Asset Securitization: Revolution, Evolution, Devolution. The Rise and fall of the Most Important Financial Instrument in Banking,” was included as an official “input document” that addressed one of the key topics debated at the symposium, which took place May 18 and 19, 2009. Book Mr. Nechemia was recognized as a leader in venture capitalism by being selected as an author for the book, The Roles and Motivations of Key Players in Venture Capital Deals (Aspatore Books, ISBN: 9781596228122). It is an authoritative insider’s perspective on the venture capital industry for both VCs and entrepreneurs, with a focus on understanding the positions of each major player involved in venture capital and private equity investments. The book, which features managing directors and
senior partners representing some of the nationâ€™s top VC and private equity firms, provides tactical advice for venture capitalists on spotting investment opportunities, establishing valuations and evaluating the potential return on investment. It also offers strategies for entrepreneurs in choosing venture capital partners, negotiating deal terms and finding the right management teams. With a detailed look at the overall landscape of the industry and common trends in the marketplace, these experts provide key strategies for analyzing a companyâ€™s vision, evaluating growth potential, conducting due diligence and determining an exit strategy. Additionally, these top venture capitalists offer tips for managing risks, avoiding common mistakes and negotiating successful deals. The different niches represented and the breadth of perspectives presented enable readers to get inside some of the great minds powering the venture world, as experts offer up their thoughts around the keys to success within this fascinating industry, where investing, strategizing, and deal-making intersect. Senior and Distinguished Fellow Awards In 2012 Mr. Nechemia was selected for Senior Fellow and Distinguished Fellow Awards from educational institutions in Canada. These awards recognize nationally and internationally distinguished men and women in business, nonprofit management and the arts whose experiences and leadership have helped meet contemporary challenges. Recipients include many heads of state and other national and international political leaders, along with Nobel and Pulitzer Prize winners. Mr. Nechemia was unable to accept the honor due to possible conflicts of interest with his time commitment and obligations to the EurOrient Financial Group and to its mission. Therefore, respectfully, he chooses to avoid both impropriety and the appearance of impropriety with his current duties and obligations to the EurOrient Financial Group. Hands-On Investment Experience Mr. Nechemia hands-on investment experience includes screening investment opportunities, attaining the highest credit rating possible for specific investment ventures, directing financial and economic analyses, negotiating investment projects and advising on economic policy changes for governments of emerging markets and international organization, such as the United Nations, and intergovernmental organizations, such as the Organisation for Economic Co-operation and Development (OECD) and the Group of 77 +1 . (The Group of 77 +1 is the largest intergovernmental organization of developing states in the United Nations. It provides the means for the countries of the South to articulate and promote their collective economic interests, enhance their joint negotiating capacity on all major international economic issues within the United Nations system and promote South-South cooperation for development). Innovative Financing Mechanisms Mr. Nechemia has 25 years of experience working on the research and development of innovative financing instruments to generate additional development finance for global public goods by tapping new sources and by engaging new partners, such as emerging donors and the private sector. At the same time, Mr. Nechemia using innovative finance schemes to deliver tailored made, banking and nonbanking, solutions to specific development challenges at the country-level, in response to requests from national governments that will be essential to the criteria of predictability, adequacy, flexibility and stability. Make a difference at all stages of financing, from additional funding to financial engineering to the effective use of funds. Some of the development challenges where Innovative Financing has been used include infrastructure, privatizations, bank and sovereign debt restructuring, water and sanitation, climate change, macroeconomic shocks and unstable macroeconomic environments, dependence on foreign currency lending, missing incentives for
effective development projects, and small and insufficient markets for goods and services. Examples of Innovative Financing initiatives include Infrastructure Project Preparation Facility, Adaptation Fund and Carbon Funds. EurOrient at-a-Glance EurOrient Financial Group Headquarters: Los Angeles, California Website: www.eurorient.org CEO: Mr. Ron Nechemia Email: firstname.lastname@example.org COPYRIGHT ÂŠ 2014 EurOrient Financial Group