Financing development in a post-conflict world: The new agenda

Panel plenary session 1 - Financing development in a post-crisis world: The new agenda

Panel plenary session 1 - Financing development in a post-crisis world: The new agenda

The panelists in the first Plenary Session of GDN’s 12th Annual Conference agreed that financing has become widely available for developing countries in the past few years, and that the main issue has become how to allocate it.

Francois Bourguignon, Director of the Paris School of Economics, claimed that financing has increased significantly in the last years and the main issue has become finding the most suitable finance scheme to maximize social return and avoid a poverty trap. Asli Demirguc-Kunt, Chief Economist of the Financial and Private Sector Network in the World Bank, pointed out that there are some undesirable effects of having such a wide availability of financing, including the irresponsible expansion of access to credit. But at the same time, she acknowledged that financial systems, and financing in general, are still crucial to developing economies because they underpin economic development. She suggested that in order to attain sustainability, the State must play a clear and defined role and that regulations have to be well formulated and enforced.

Roberto Steiner, Director of Fedesarrollo in Colombia, urged the audience to not overlook International Financing Institutions (IFIs) as they are of paramount importance for the sustainability of the financial system. He said that such support institutions will play a crucial role in helping to deliver the expected growth of developing economies in the following decades. He also argued that markets are becoming aware of this, as portrayed by the case of the International Monetary Fund (IMF), which has grown in the last years after almost disappearing. Additionally, Steiner stated that developed nations should comply more strictly with the rules of such institutions in order for world economy to perform better.

Finally, Alan Winters, Chief Economist at the UK Department for International Development (DFID) and Professor at the University of Sussex, stated that in spite of the global proliferation of aid sources for financing, there is a pressing need to find new ones and mobilize domestic resources.

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About Megan Lloyd-Laney
Director of CommsConsult www.commsconsult.org and hopelessly - some would say exhaustingly - committed to the relentless pursuit of communications excellence in everything we do. Happy to be part of the team behind www.researchtoaction.org - the 'go-to' platform for anyone wanting to maximise the potential of their research

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