Development Finance Agenda (DEFA) - Volume 1, Issue 1, 2015
Volume 1, Issue 1, 2015
Author Nicholas BiekpeSource: Development Finance Agenda (DEFA) 1 (2015)More Less
Are you a finance person working for a development finance institution, for an economic or finance cluster of government, for a commercial or investment bank with interest in emerging market or for a non-governmental organisation using finance to support development program? If the answer is yes, then the Chartered Institute of Development Finance (CIDEF) is your professional body. The Institute is a global body set up to establish a unique platform for professional membership of development finance specialists. It works with academic institutions, development finance intuitions and development finance support agencies in government, the private sector and NGOs to promote development finance capacity in research, training and relevant professional capacity building. CIDEF has networks and other support institutions throughout the world and is the only institution which offers professional memberships and certifications in development finance.
Source: Development Finance Agenda (DEFA) 1, pp 4 –7 (2015)More Less
The Commitment to Development Index (CDI) evaluates rich countries' policies that affect the more than five billion people living in poorer nations. Building on the CDI framework this paper introduces Europe Beyond Aid initiative, which assesses Europe's performance in 7 policy dimensions, identifies strengths and weaknesses, and derives policy recommendations for Europe collectively, or member states individually. Furthermore the paper discusses European policies with regard to financial transparency and support to investment abroad. The findings suggest that Europe performs about average compared to other developed regions, and performance in financial transparency is slightly worse than in investment support. In both areas there are significant differences among European countries which imply countries can move to the frontier by emulating each other's best practice.
Asia-Pacific DFis and corporate governance self-assessment : key to institutional strengthening & financial system stabilityAuthor Octavio B. PeraltaSource: Development Finance Agenda (DEFA) 1, pp 10 –12 (2015)More Less
Development finance institutions (DFIs) or interchangeably referred to as development banks, are national policy instruments of government that act as catalysts in capital mobilization, fill the gap in the financial system and performs a countercyclical role in difficult economic times. Continuously enhancing their operational capability and improving governance structure and processes are essential to the DFIs' longterm sustainability. This paper narrates the experience of the 131-member, 45-country Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) in its aim to contribute to the sustainable development of the Asia-Pacific region through the institutionalization of good governance systems and practice in DFIs. In ADFIAP's perspective, a self-assessment of its member-banks' corporate governance policies and practices through its two instruments, namely, the Corporate Governance Rating System and the Checklist of Indicators of the Quality of Corporate Governance of Corporate Borrowers is a good first step in strengthening the institutional governance framework of DFIs and other financial institutions.
Source: Development Finance Agenda (DEFA) 1, pp 16 –21 (2015)More Less
There is increased interest in assessing the role of Development Finance Institutions (DFIs) in promoting jobs - direct and indirect - and structural transformation - from low productivity to high productivity activities. This article reviews the practice of DFIs so far in reporting job and productivity impacts. Whilst most DFIs report on the number of jobs supported, there has been much less attention to the indirect job impacts of DFIs and hardly anything on productivity impacts. We summarise new evidence we generated on the productivity impacts of DFIs suggesting tentatively that they can enhance jobs and productivity through providing finance. We conclude there is a need to complement studies on ex-ante multiplier effects of DFIs with other studies (e.g. case studies, econometric studies) on the actual impact on jobs and productivity.
Author Daniel PlatzSource: Development Finance Agenda (DEFA) 1, pp 24 –26 (2015)More Less
This brief article provides a snapshot of recent progress on development finance commitment made at the UN and points to some of the challenges ahead. Over the past decade, the Monterrey Consensus and the Doha Declaration on Financing for Development have been major reference points on development finance. They represent a true global compact built on the understanding that development requires country-led strategies and an enabling international environment. Their comprehensive financing frameworks have shaped policies at the national, regional and international levels and led to some notable successes, especially in the field of domestic resource mobilization, debt relief and development assistance. However, the world has changed dramatically and new challenges in development finance have emerged, such as the need to more fully integrate sustainability in the global agenda. In this regard, the international community should pay heed to the important current efforts at the United Nations to tackle these challenges. The outcome of the ongoing deliberations of UN Members States on a new "post-2015 development agenda" and its underlying financing framework will have an impact on the lives of our future generations.
Author Sharron L. McPhersonSource: Development Finance Agenda (DEFA) 1, pp 28 –31 (2015)More Less
This article seeks to shed light on the development of private equity in Sub-Saharan Africa. Private equity, as an asset class for financing development is often misunderstood and therefore underutilized in Sub-Saharan Africa. In this paper, we (a) explore the challenges and opportunities posed by private equity as a source of finance for development; and (b) advocate for the allocation of greater resources towards increasing the amount of private equity available for investment across SSA and to implement measures to increase the market use of PE as an important source of development finance.
An approach to managing country risk in African states that are fragile or emerging from fragility : a development practitioner's perspectiveAuthor Juana Purchase HatfieldSource: Development Finance Agenda (DEFA) 1, pp 34 –36 (2015)More Less
Africa is experiencing an unprecedented economic and commercial vibrancy. Analysts agree that the short-to-medium-term growth prospects for the continent remain strong. However, Africa is home to nine of the ten most difficult countries to do business in and over half of the world's 47 fragile states. This paper provides a practical overview of how country risk practitioners at an African infrastructure development finance institution have developed and used a three-stage methodology to effectively manage country risks. This approach is complemented and strengthened by extensive local networks and a deep understanding of how the markets in different countries function.
Source: Development Finance Agenda (DEFA) 1, pp 38 –39 (2015)More Less
The objective of this paper was to evaluate the performance and sustainability of saving and Credit Cooperatives in Tanzania (SACCOs). We used the data from audited financial statements of 103 SACCOs during 2011. We found that there is a glimmer of hope towards financial sustainability path for some SACCOs, but more work is ahead. While 51% of SACCOs are performing well in terms of sustainability, the remaining 49% of them are operating under 'time bomb' mode meaning that their annual total cost is higher than their annual net revenue. In terms of profitability on average they are profitable recording 7% returns on asset. Improvement in profitability and cost containment has been found to have a significant positive impact on performance and sustainability of SACCOs.
Source: Development Finance Agenda (DEFA) 1, pp 42 –43 (2015)More Less
While the Islamic finance industry has been growing rapidly in many regions, it is not yet significant in Sub-Saharan Africa (SSA). However, several features make Islamic finance relevant to Africa's development, particularly the ability to foster financing for SMEs and infrastructure development. In a recent paper, we provide a survey on current status of Islamic finance in SSA, with special focus on banking and sukuk (Islamic bond). Should they wish to develop the market, policy makers could introduce Islamic financing windows within the conventional banking system and facilitate sukuk issuance to tap foreign investors for development of infrastructure. As Islamic banking grows, policy makers would have to adopt regulatory and supervisory standards to address risks as they emerge.