Abstract
This chapter concludes with thoughts on the impact of a development system based on marketized development financial instruments. It highlights how current development policy has codified these instruments into formal strategies, as the SDGs, MFD, and AAAA herald them as a critical tool going forward. The chapter also makes note of how marketized development financial instruments have been embraced by institutions such as the China Development Bank (CDB), highlighting their universal appeal. However, there are also potential shortcomings to the strategy; these include questions about the transparency of financial instruments, the efficacy of these new instruments versus alternative mechanisms, and the potential contingent liabilities to donor country governments.
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Notes
- 1.
Bundesanstalt für Finanzdienstleistungsaufsicht, or the Federal Financial Supervisory Authority.
- 2.
So far, BaFIN has not taken an active role in restricting KfW. For more details on the implementation “Regulation Concerning Application of the German Banking Act to KfW Enters into Force,” KfW Press Release, 8 October 2013.
- 3.
- 4.
The CDB has implemented an SME financing program within China for the past decade. Incidentally, the first SME financing project in China was conducted in Shenzhen in a co-financed project with KfW (Development Practitioner #1 2015).
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Volberding, P. (2021). Toward the Future for Marketized Development Financial Instruments. In: Leveraging Financial Markets for Development. Executive Politics and Governance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-55008-0_7
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