Development banks

This paper makes a critical examination of the policy directions of the Asian Infrastructure Investment Bank (AIIB) and its current interests on the African continent. Although it is a regionally-based development bank, the AIIB has today positioned itself as a visible actor in global governance, and has become one of the largest global intergovernmental organisations through its various partnerships and agreements outside Asia. Recent developments show in several ways that China's interest in the African continent is here to stay, and that the AIIB is an important instrument that China is using to increase its influence in Africa. The AIIB has 18 approved members on the African continent, and has started to co-finance projects in Africa with the World Bank Group. This paper assesses the members of the AIIB on the African continent, and investigates why China has turned its attention to investments in Africa through the AIIB. The study looks at three particular AIIB projects in Africa, being a solar energy plant project, a rural sanitation system project and an international finance project, and opens a discussion of their effects.

This publication attempts to create a better understanding of the nature, origins, and evolution of organized crime in Central America by examining the dynamics of organized crime in the three countries of the so-called Northern Triangle—El Salvador, Guatemala, and Honduras—as well as the broader regional context that links these case studies. The authors investigate the challenge organized crime poses to the state, its institutions, and governability in general.  This publication is part of a series on the sub-regional dynamics  of organized crime, focusing especially on the linkages between Central America, Mexico, and the Andean region as well as the growing insertion of Latin America in global transnational crime networks.

In this paper we will address the topic of project procurement in the EU Enlargement Countries, within the framework of development projects supported and funded by Multilateral Development Banks (MDBs).
At the very beginning of this text, the author will present the notion of multilateral financial institutions and historic facts that led to establishment of Multilateral Development Banks, as well as their respective spheres of activity. Therewith, author will briefly explain MDB’s relationship with developing countries and present pre-conditions for project financing. Also, we will present quick breakdown of project life cycle phases, introducing the notion of project procurement.
Further, we will elaborate phase by phase of project cycle, emphasizing parts relating to project procurement activities. In addition, we will depict notion of Project Implementation Unit (PIU) and the role of Project Manager (PM) in execution of project activities, as well as the importance of project master document – Project Implementation Manual (PIM).
In this part of the thesis, author is trying to shed light on the project investment portfolio and procurement framework of major multilateral and regional development banks operating in EU Enlargement Countries, explaining the scope and nature of project operations.
At the end, we will try to summarize main findings of this analysis, and to provide an outlook on the sustainability and future evolvement of the project procurement as the particular type of the procurement, with its role in the achieving of the set of the socio-economic development goals. Additionally, we will provide set of potential policies and measures that need to take place in order to diminish any conflict in applying of national and Multilateral Development Bank’s procurement procedures, as well as to provide downsides of project procurement in development projects.

The European Investment Bank (EIB) constitutes one of the main institutional pillars upon which the European Union (EU) was built. Despite this, the institution has attracted surprisingly little research. The EIB Statutes can be boiled down to three overarching objectives that its lending would prioritise – development, integration and investment – but little is known about the extent to which EIB loans fulfilled each objective in practice. This article breaks new ground by providing the first comprehensive qualitative and quantitative analysis of EIB loans from its origins to the end of the Cold War. To do so, lending patterns were reconstructed drawing on extensive archival work. Results show that the EIB was the first International Financial Institution to place integration and development above the alleviation of capital constraints.

Multilateral Development Banks (MDBs) play a crucial role in assisting Low-Income Countries (LICs) develop their economies. However, as the wealth of LICs increase, the graduation policies of the banks are often placed under scrutiny as hard lending terms could lead to increased poverty and, potentially, a relapse to concessional lending.  This paper explores when and how countries should graduate from concessional to non-concessional loans, as well as how various banks differ in their graduation policies and mechanisms.  Using an overview of existing literature and correspondence with CIDA experts on the topic of concessional loans, we believe that the ultimate effectiveness and success of current graduation mechanisms is contingent on the political and economic factors specific to each State. Consequently, it proves difficult to recommend a single streamlined approach to graduation through which LICs and MICs could successfully develop their economies and end reliance on concessional funds.

It is inherent in microcredit (MC) the democratization of credit to
the excluded, in order to enable the generation of employment and income for low-income families. However, the threshold of the twenty-frst century, enter the agenda of the MC discussions regarding the scope and fnancial sustainability of these institutions. Whose purpose is to develop economically viable mechanisms for the institutions, without compromising lending to low-income populations – the poor among the poor. Based on this background, the paper investigated the performance of the Citizen’s Bank in the period 2006 to 2009 to ensure that it was focused on meeting the regions with low socioeconomic status or
longed to fnancial sustainability. Therefore, we used the log-linear model, which was estimated by the method of Weighted Least Squares (WLS), and also some fnancial indicators presented in Leismann and Carmona (2011). It was evident that the Bank had a more incisive role in regions with higher dynamic. However, despite this fnding could not be fnalized as the Bank sought to ensure fnancial sustainability.

This article examines the principles of accountability applied by the European Investment Bank in comparison with the practices of other Multilateral Lending Institutions. After a brief description of the EIB and its activities, the substantive and procedural principles governing the EIB’s external accountability are reviewed. The substantive accountability principles considered are the applicable rules of the EU legal order and the voluntary human rights, social and environmental principles and standards which the EIB has identified for itself and committed to follow throughout its operations. The article evaluates the extent to which these norms form a credible normative framework against which the EIB’s lending practices can be appraised. From a procedural accountability point of view, the article assesses the transparency and participation policies of the EIB, as well as the mechanisms offered to external stakeholders to seek redress from the EIB in case they are wronged by one of its decisions. The redress mechanisms analysed are the recent EIB’s Complaints Office, the European Ombudsman and the Court of Justice. We conclude that the EIB should take more advantage of its being subjected to the EU human rights, social and environmental rules and of the EU judicial apparatus in order to upgrade its substantive and procedural accountability towards external stakeholders.

The field of international development cooperation is undergoing tectonic shifts, with new nodes of decision-making and resources emerging alongside existing institutions. From the 1970s to the turn of the millennium, the Bretton Woods
Institutions, alongside the United Nations Development System (UNDS) – the fifty-plus programs and agencies within the organization that are primarily dedicated to international development – constituted the field’s loose center of gravity.
Since the turn of the millennium, however, the gamut of actors involved in international development has diversified significantly, with private foundations, South-South cooperation providers, and other stakeholders becoming more influential
– both quantitatively and qualitatively. This broadening assortment of actors (and the development norms they espouse) creates new dilemmas for the UNDS. Broadly put, what should be the UN’s role within the shifting panorama of international development? This paper focuses on one piece of this changing puzzle: the emergence of new multilateral development banks and their role within the field of
international development, including the implications for the United Nations. More specifically, the paper concentrates on two recently established institutions, one primarily regional and the other essentially transregional: the Asian Infrastructure
Investment Bank (AIIB) and the BRICS’ New Development Bank (NDB). Examining these two nascent organizations against the backdrop of some of the field’s key debates, including the changing role that geopolitics plays in international development politics, I argue that the UN must be proactive in redefining its role vis-à-vis the dynamic
network of institutions being created by so-called
rising powers. The key point is this: in order to
maintain its relevance in the field, the United Nations must harness its convening power and boost its legitimacy as agenda-setter, so as to foster a clearer division of labor with development financing institutions, particularly in light of the 2030 Agenda for Sustainable Development.

Investment is a key variable for any economy. To make the most of the multiplier effects investment creates, a developed and competitive national capital goods industry is necessary. Hence, all successful industrial policies have reserved some attention to this industry. The latest major innovations in this industry occurred during the 1980s and 1990s when microelectronics and information technology were absorbed. The rise of the so-called industry 4.0 or advanced manufacturing is in part a deepening of this movement. The purpose of this chapter is to bring some structural aspects of the capital goods industry together with some numbers that show its recent performance. In addition, the main technological trends are pointed out. These trends are especially related to internet of things and the development of the additive manufacture.

In this paper, we present the results of the first effort to consolidate information on infrastructure projects in the Amazon region financed by BNDES – National Bank for Economic and Social Development. A political-financial institution in the last two decades shifted from the status of National Development Bank, working exclusively in Brazil, to take its place among the major development banks with international operations. The experience we had in search of reliable official information of projects financed by the BNDES, especially those for financing activities abroad, leads us to conclude that persistent barriers to public access to such data. This conflicts with the current government’s discourse in the country in favor of the right of society access to public information. For the presentation of the data was decided to divide the Amazon region into three subregions, namely: 1) Brazil, 2) Andean Amazon, and 3) Arco Norte.

This study aimed at investigating the role and effect of “Development Banks & Entrepreneurship promotion “loan attained by Small Enterprises from development banks in fostering promotion and enterprise development in India. The study was carried out NCR. Literature on development banks, entrepreneurs and finance in Small enterprise was extensively reviewed. To measure the extent of promotion, three levels of promotion were categorized, namely introduction of completely new ways and products, modifications of ways and products and adoption of new ways and products. To achieve the desired results, a questionnaire, interviews guides and field observations were used for data collection. The statistical Package for Social Sciences (SPSS) and content analysis were used for data analysis.

Alice Amsden's seminal work on the developmental state was premised on a general theory of control mechanisms. Her focus on development banking prioritises financial control. However, the development literature concentrates on one element of financial control: investments rather than borrowing. Further, a state bank makes borrowing bargains that are fundamentally political. Building on recent work on " political settlements " and development, we propose a political theory of control mechanisms that builds politics into Amsden's theory of control. We then apply it to development bank fundraising, arguing that when development banking works, it does so by reconciling political settlements with control over fundraising.

The Case of the World Bank’s Program-for-Results

Governments and development finance institutions, such as the World Bank, should raise (i.e., “harmonize upwards”) important norms and standards relating to: transparency, participation, social, environmental, and anti-corruption policies. In order to achieve positive development results, such standards are necessary.

However, in some respects, governments and development finance institutions view norms and standards in a negative light. For instance, some fear that they will be at a competitive disadvantage relative to countries or institutions with lower norms and standards. Some recipient governments believe that norms and standards are an imposition by Western nations that handicaps their development progress. Perhaps the strongest argument against norms and standards is that they undermine “country ownership.” However, some supporters of “country ownership” are backers of the executive branch (the bureaucrats) of recipient countries, not citizens or their elected representatives.

This paper traces the way in which different processes (the “Aid Effectiveness” Forums) and institutions (the G20 and the Multilateral Development Banks (MDBs)) pursue “country ownership.” It focuses on a new World Bank lending instrument – the Program-for-Results (PforR) which will be used to finance government programs in sectors (e.g., industry, agriculture, health). The standards that the World Bank has employed for decades (e.g., its set of 10 environmental and social safeguards, plus its financial management and procurement standards) do not apply to PforR operations. This is a mistake. The Bank should use these standards and safeguards for PforR operations and to strengthen the “country systems” (e.g., policies and regulations) in recipient countries.

Due to pressure from the U.S. Congress, the Bank is using the PforR instrument in operations totaling only 5% of its total financial commitments for the next two years. We believe that safeguards and standards should be applied to all PforR operations before this “cap” is lifted.

The paper concludes that a choice between “country ownership,” on the one hand, and norms and standards, on the other, is a “false choice.” Indeed, “country ownership” and forms of development assistance, such as support for national and sector budgets, are compatible with standards relating to transparency, participation, financial management, and social and environmental protection.

In a financialized world dominated by a powerful, unaccountable, and self-interested financial class, there will be no just or green transformation without first reclaiming financial capacity in the public, not private, interest. But it would be a grave mistake to assume that resurgent public banks, by virtue of being publicly-owned, will necessarily function in the public interest. Public banks can and do go wrong. For public banks to work in the public interest, they must be made to do so. This demands meaningful democratization. This is the action now needed.

1. Development Bank: The proposals by Stuart Holland and co for a eurobond loan of 500 billion as opposed to Pikkety's loan can be augmented in Greece at least with a development bank that could act as the conduit for such development funds.
2. A proper ecosystem for Greek start-ups
3. A European Passport required for all non-EU companies and products that would ensure environmental and human rights standards for all those who wish to sell or set up shop in Europe

It is to be highlighted that while Europe is facing an investment gap, one of the main problems is how to meet the requirements of the public which are growing faster than the EU Member States' budgetary possibilities. The paper focuses on the important role that national development banks play in meeting these requirements and in the implementation of the European Investment Plan (Juncker-plan) besides the European institutions (European Commission and the EIB Group). They are involved in financing infrastructure projects as well as acting as holding fund managers or financial intermediaries in different financial instruments. The paper examines the scope of national development banks, their roles, missions and business models in several EU Member States. This is done through measuring and comparing their performance to each other and their business models. Firstly, account is taken of the actual level of control exercised by the public sector as opposed to their level of ownership, and our ensuing examination of a spectrum of public influence. Secondly, the missions of public financial institutions (PFIs) are analysed in terms of their objectives, geographical scope, stakeholders, products and services especially highlighting their involvement in the implementation of EU financial instruments.

This paper seeks to discuss a proposal regarding a new multilateral institution in Latin America, the Bank of South. It presents the original plan of the Bank, made in 2007 and its recent developments stressing the problems faced during its implementation. It concludes presenting a new proposal for the bank to make it better suited to foster the commercial and financial integration of its members. Instead of a standard Multilateral Development Bank as in the current proposal, the authors propose a radically different design for the Bank: National branches making loans in their local currency to SMEs engaged in regional trade. The activities of the national branches of the Bank of South would be supported by private financial institutions, which would undertake the risk assessment process, and by the respective central bank, which would re-discount or securitize the loans provided by the bank.

Financial market recommendations for less industrialized economies, particularly in the wake of the recent financial crises, have included a push for more international financial competition. The entry of multinational banks (MNBs) into developing economies is supposed to create more market discipline for domestic banks, thus making them more efficient, and enhancing financial stability. Using data from the BIS and the IMF, we look at the impact of MNBs on credit supply and on financial stability in less industrialized economies. MNBs focus their activities predominantly on serving MNCs, and on providing services that domestic banks cannot offer to domestic corporations, and high net worth individual. This increased competition in certain low risk market segments entices domestic banks to lower their credit exposure in the early stages of international financial competition. However, as MNBs continue to operate and to grow their market shares in less industrialized economies, domestic banks become more confident with the new competitive situation, eventually increasing their loans, especially to the enterprise sector. Both consequences of increased international financial competition early credit crunches, and later credit growth can have real implications in the form of lowered business investment or financial instabilities, unless adequate regulatory and supervisory structures are installed.

For several reasons the capital goods industry (CGI) is strategic for Brazil. This study aims to analyze this industry’s recent behavior in a period when the Brazilian economy regained momentum. We will evaluate some opportunities for several segments in the Brazilian economy by breaking down investment into several activities while we simultaneously evaluate the Brazilian capital goods industry’s ability to benefi t from these mentioned opportunities. Data from IBGE and MDIC will be used in this study and also from Capital Flow Tables (CFT) and from BNDES’ operations and estimates of future investments.

Why do regional powers such as Brazil, South Africa, or Russia undertake different collective strategies to supply public goods in their regions of influence? When do those states prefer to delegate competences to existent multilateral financial institutions, such as regional development banks (RDBs), and when do they prefer to make use of their own national financial instruments? Why do those states create new RDBs that challenge the existing ones? The article builds and tests a set of hypotheses based on the interplay between capabilities and legitimacy to help answer these questions using contemporary South America as a case study. Through a process tracing analysis carried out for the period 2000–15, the article explains the different strategies undertaken by two states, Brazil and Venezuela, to supply infrastructure in the region, ranging from the use of the Brazilian National Development Bank to the creation of a new Bank of the South. It is suggested that the low capabilities and legitimacy expectations of both states explain the rising importance of external actors in the supply of regional public goods that we are currently witnessing in South America.

The essays in this book reflect an effort to provide background and context for understanding Iran's relations with Argentina, Bolivia, Ecuador, Nicaragua, and Venezuela; the articles emphasize the foreign policy objectives and strategies of Latin American nations as well as the strategic objectives of the Iranian government.

This article is a contribution to a Forum in this journal that addresses common pool resources as positioned within an increasingly global context.
The announcement for the 2000 Conference enthusiastically intoned that common property institutions would be a prominent feature in the next millennium! But, it continued, traditional common property institutions will need to adjust and change “in response to an ever-expanding global economy”, while new commons will be created, and “market institutions may exist side by side with common property and governmental institutions”. This speaks to the complexities following the current parallel global tendencies to devolve authority and decision-making to both local and supra national levels, at the cost of the traditional nation state, all of it taking place within the framework of an increasing globalization of trade and markets.
The article addresses the role of Multi-Lateral Development Banks that work in development cooperation and investment operations, and discuss their role in, understanding of, and relationship with, common property resources. It also discussed a possible collaboration between IASC, the World Bank and CPR Net.

The foreign experience of establishing development banks is generalized. The main directions of investment activity of development banks are considered. The potential advantages and risks of operation of the State development bank of Ukraine are defined. It is proved that the State development bank can become one of perspective investors in domestic economy to promote the increase in average and long-term crediting of investment and innovative projects.

El artículo discute los desafíos que impone la Agenda 2030 y el cambiante escenario económico y geopolítico internacional al desarrollo sostenible de América Latina y el Caribe. La autora argumenta que la integración de la región y el acceso a financiamiento son dos requisitos indispensables para este desarrollo.

O presente trabalho faz uma revisão bibliográfica sobre o funcionamento do mercado de crédito e o papel dos bancos de desenvolvimento em uma perspectiva pós-keynesiana estruturalista. Escolheu--se seguir essa vertente teórica por se considerar ela a que melhor descreve o funcionamento real do circuito financeiro, incorporando elementos que são negligenciados pelo mainstream do pensamento econômico, tais como a existência de incerteza não probabilística, a preferência pela liquidez e a tendência de deterioração da posição financeira dos agentes econômicos. Conforme identificado na pesquisa realizada, a teoria pós-keynesiana faz uma sólida descrição do funcionamento do mercado de crédito e aponta a importância dos bancos de desenvolvimento para a construção de um sistema financeiro funcional.

The European Investment Bank (EIB) constitutes one of the main institutional pillars upon which the European Union (EU) was built. Despite this, the institution has attracted surprisingly little research. The EIB Statutes can be boiled down to three overarching objectives that its lending would prioritize – development, integration and investment – but little is known about the extent to which EIB loans fulfil each objective in practice. This article breaks new ground by providing the first comprehensive qualitative and quantitative analysis of EIB loans from its origins to the end of the Cold War. To do so, lending patterns were reconstructed drawing on extensive archival work. Results show that the EIB was the first International Financial Institution to place integration and development above the alleviation of capital constraints.

Duas experiências distintas no campo das microfinanças promovidas pelo Banco do Nordeste do Brasil são aqui avaliadas: (1) Programa Crediamigo, de microcrédito urbano produtivo orientado; e (2) Programa de Apoio a Projetos Produtivos Solidários (PAPPS), nos pressupostos da economia solidária. Para tanto, o enfoque etnográfico é apresentado como importante metodologia no desenvolvimento de processos avaliativos. Aponta-se para o alcance de sujeitos, relativamente, no mesmo grupo social, porém que se apresentam como públicos diferentes e recebem atenções, impactos e investimentos dispares sobre suas vidas e trajetórias, de acordo com os programas em que se inserem. Os resultados mapeiam como essas duas políticas, dialogam ao mesmo tempo em que diferem e se distanciam em foco e peso dados às dimensões econômicas, sociais e políticas no Nordeste brasileiro. À guisa de conclusão, evidencia-se a lógica seguida pelos programas; os impactos proporcionados na vida dos alcançados; e que quali...

Перспективи посткоронавірусних економічних трансформацій та їх вплив на розвиток країн. Місце України у посткризовому світі. / Наук. ред. В.Юрчишин.-Київ: Заповіт, 2021.
This publication presents the analytical report of the Razumkov Centre and the positions (including debatable ones) of leading Ukrainian experts,
which focus on international and domestic crisis problems, the experience of anti- and post-coronavirus areas of economic policy, as well as the
achievements and losses associated with them, in the main economies of the world. This will contribute to the formation of rational tasks and
directions of actions oriented to the recovery and development in Ukraine.

Multilateral Development Banks (MDBs) have two financing windows, with different terms, dedicated to low- and middle-income countries. Countries are presumed to cross those windows as their income per capita rises, with middle-income countries (MICs) eventually “graduating” to a non-client status once they reach some criteria. However, due to what may be called “middle-income traps”, such progression toward graduation has been limited to a small number of countries.

National Development Banks (NDB) are one of the important institutions. Especially, Keynesian sights have increasingly emphasized this institution since WWII in the belief that NDB can solve capital insolvency and accelerate growth via the provision of long-term financing. With the attempt to neoliberal globalization, developing countries described as Global South have desperately need of industrialization but persisting problems such as financial deficiency and lack of entrepreneurship in these countries impair the industrialization. As a result, regarding the promotion of national industrialization, NDB can be defined as the engine of the economy in the Global South. On the other hand, despite the common characteristic of backwardness and desire of industrialization, each developing country constantly encounter different structural problems so national development banks must produce solutions in this direction and authorities should design their institution in terms of their own characteristics. This study aims to define generally NDB's historical economic role with respect to development sight. Within this scope, two important Global South countries' national development (China and Brazil) banks will be analyzed.

Vínculos entre la Corporación Andina de Fomento y el socialismo del siglo XXI. Un análisis sobre el caso ecuatoriano en el período 2005-2015. Resumen: La Corporación Andina de Fomento está regida por normas desarrollados en un contexto conservador-liberal. Esto manifiesta un posible conflicto de intereses y desvinculación entre sus acciones y las políticas desarrolladas por Ecuador para el período 2005-2015 caracterizado por un gobierno enmarcado dentro del socialismo del siglo XXI. En el presente trabajo se contrastan las características de dicho socialismo con el accionar de Corporación Andina de Fomento para concluir que existen vinculaciones entre ambos como también vacíos y tensiones que deben ser estudiadas con mayor profundidad en posteriores análisis.