On February 16, 2006 Jean Lemierre, President of the European Bank for Reconstruction and Development, visited Ann Arbor to present the Citigroup Lecture, hosted by the International Policy Center and the Gerald R. 
Ford School of Public Policy. As part of his visit, Mr. Lemierre met informally with Public Policy students. Twenty-five students gathered in Foster Library to meet the leader of one of the largest development banks.
Following a question from Maggie Koziol, a former Ukraine Peace Corps Volunteer, Jean Lemierre described EBRD’s involvement with recovery projects in the area affected by the Chernobyl disaster. Chris Dorle, who is also a Master of Public Policy student, asked about EBRD’s relationship with USAID. Mr. Lemierre underscored the value of cooperating with other development organizations, especially the new Millennium Challenge Corporation.
Mr. Lemierre discussed the activities and objectives of EBRD.
The first goal is to promote democracy in transition economies. When asked about China’s economic growth, Mr. Lemierre showed skepticism about its sustainability. He said, “Can an economy be sustainable without democracy? I say: no.”
EBRD’s second goal is promoting a market-based economy.
Toward this end, the EBRD gives loans for infrastructure projects in developing countries. Roads, electricity lines, airports, and bridges all play important roles in a successful modern economy. EBRD helps developing countries construct those essentials.
Mr Lemierre explained that EBRD, as a development bank, does not compete with private banks. If a private bank were willing to lend money for some project, then EBRD stays clear. EBRD’s projects tend to be riskier, and, for that reason, unattractive to private banks. Mr. Lemierre said “at the end of the day, we are risk takers”.
EBRD also partners with private investors. A private company may be tempted to invest in a developing country, but, from aversion to unpredictable environments, chooses to stay on the sidelines instead. In order to lessen the risk for private companies, EBRD offers to partner on the investment. EBRD’s powerful connections and global relevance bolsters the success rate. Deals that would not otherwise have been made are completed with EBRD’s assistance.
Mr. Lemierre mentioned another important feature of the EBRD. Unlike some other development banks, it does not ask for sovereign guarantees. If a loan is not paid back, the people of that country are not 
responsible for the debt.
Mr. Lemierre admitted that EBRD has also faced failures. During the 1998 financial crisis in Russia, EBRD incurred some losses. Developing countries’ corruption has been a chronic pain for EBRD. When discussing lesson’s from the past, Mr. Lemierre said “we learned that there are crooks”. “We can not have development with corruption”. Corruption is not only a problem because it distorts the market, but “the worst part of corruption is ‘brain-drain’”, or the fleeing of the talented and ambitious from their home nation to countries with fairer system and opportunities.
He said, “Corruption is like mushrooms. They grow in the dark.” The solution is a free press, which brings light and transparency.
Mr. Lemierre’s discussion was both informative and inspirational. Not only did students learn about international development and EBRD, but we also discovered a friendly personality behind one of the world’s most influential organizations.
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