n Development Finance Agenda (DEFA) - The role of development finance institutions in promoting jobs and structural transformation

Volume 1, Issue 1
  • ISSN :



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.

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