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Changes in Development Finance in Asia: Trends, Challenges, and Policy Implications
Author(s) -
NISHIZAWA Toshiro
Publication year - 2011
Publication title -
asian economic policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.58
H-Index - 20
eISSN - 1748-3131
pISSN - 1832-8105
DOI - 10.1111/j.1748-3131.2011.01199.x
Subject(s) - finance , financial intermediary , incentive , economics , private finance initiative , project finance , investment (military) , intermediary , public finance , financial sector development , business , private sector , economic growth , financial sector , macroeconomics , political science , politics , law , microeconomics
There have been shifts in the composition and nature of development finance in Asia, such as the mainstreaming of private sources of finance and the emergence of domestic resources potentially available for development purposes. In parallel, new trends and challenges are identified in such areas as the transformation of development aid, public–private partnerships, and green finance. A common challenge is how to strengthen financial intermediaries for longer term sustainable financing from domestic and external sources for investment serving development purposes. To address this, policymakers should bear in mind policy coherence and consistency from macro, sector, and micro perspectives. For various financial resources to bring about tangible benefits, policymakers should take account of complementarities and synergies among the full range of available financial resources. The effective utilization of private sources of finance depends on commercial viability. The key to success is incentive design and risk mitigation measures.