Development finance

Development finance is a branch of development studies that deals with financing of economic and social development. It typically involves of both the mobilisation and dispersion of domestic and international sources of fiance. At the international level Foreign Aid, in particular Official Development Assistance (ODA), Development aid and charitable and philanthropic contributions, and Foreign Direct Investment (FDI), and flows of remittances from overseas workers are looked at. Domestically both the traditional banking sector and the less formal sectors are investigated as is Microfinance. The activities and role of Development finance institutions (DFIs) both national and international ones form a large part of the subject matter analysed.^[1]^[2]^[3]^[4]

Tony Atkinson (2004), concentrating on looking for new sources of funding development, lists the following:^[5]

Global environmental taxes
Currency transactions tax (Tobin tax)
Special Drawing Rights (SDRs)
International Finance Facility (IFF)
Private donations
Global lotteries or premium bonds
Remittances from emigrants

A glossary

Saldinger (2017) has provided a useful glossary of development finance terminology. The terms include:

Results-based financing, (performance-based financing or pay-for-success)
Social impact bonds
Development impact bonds
Blended finance or blended capital
Concessional loans
Loan guarantee
Impact investing
Green bonds, climate bonds and more
Domestic resource mobilization
Venture capital
Remittances
Diaspora bonds^[6]

Other topics that are typically looked at include: Financial repression and financial liberalisation; the Political economy of development finance; Financial crises and development; Financing Small and medium enterprises in developing countries^[7]

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Development finance

A glossary

Journals

References

Wikiwand - on