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Author Suhas, Ketkar
Title Innovative Financing for Development
Imprint Herndon : World Bank Publications, 2008
©2008
book jacket
Descript 1 online resource (209 pages)
text txt rdacontent
computer c rdamedia
online resource cr rdacarrier
Note Cover -- Title Page -- Contents -- Foreword -- Acknowledgments -- About the Editors -- Abbreviations -- CHAPTER 1 Innovative Financing for Development: Overview -- Introduction -- Early Innovations -- Recent Innovations -- Future-Flow Securitization -- Diaspora Bonds -- GDP-Indexed Bonds -- Shadow Ratings and Market Access -- Financing for Development in Sub-Saharan Africa -- Innovations Classified by Intermediation Functions -- A Role for Public Policy -- The Future of Innovative Financing -- Notes -- References -- CHAPTER 2 Future-Flow Securitization for Development Finance -- Introduction -- Risk Mitigation in Future-Flow Securitization -- Rationale for Securitization -- Securitization Track Record -- Potential for Future-Flow Securitization -- Magnifying the Development Impact of Remittances -- Will remittances stay up in a crisis? -- Will the state take steps to divert remittances from private to state-owned banks? -- Will the central bank of the recipient country permit the payment of remittances into an offshore escrow account? -- How can a recipient bank show remittances as deposits for the benefit of local residents if they are paid into an offshore escrow account? -- Constraints on Securitization and the Role for Public Policy -- Annex: Additional Examples of Securitization -- Example 1: Banco de Credito del Peru's Securitization of Credit Card Receivables -- Example 2: Pemex Finance Limited Securitization of Crude Oil Receivables -- Notes -- References -- CHAPTER 3 Development Finance via Diaspora Bonds -- Introduction -- Israeli Experience -- Indian Experience -- Rationale for Diaspora Bonds -- Rationale for the Issuer -- Rationale for the Investors -- Conditions and Candidates for Successful Diaspora Bond Issuance -- Conclusion -- Notes -- References -- CHAPTER 4 GDP-Indexed Bonds: Making It Happen -- Introduction
The Benefits of GDP-Indexed Bonds -- Gains for Borrowing Countries -- Gains for Investors -- Broader Benefits to the Global Economy and Financial System -- Recent Argentine Experience with GDP-Indexed Bonds -- Concerns, Issues, and Obstacles -- Some General Issues and Concerns -- Investors' Concerns -- Accurate Reporting of GDP Growth Data -- Sufficient Liquidity and Scale -- Pricing -- Other Concerns -- Different Potential Investors -- Issuer Interest -- Additional Suggestions for Overcoming Obstacles -- Policy Implications and Next Steps -- Notes -- References -- CHAPTER 5 Shadow Sovereign Ratings for Unrated Developing Countries -- Introduction -- Some Stylized Facts about Sovereign Credit Ratings -- Prediction of Sovereign Credit Ratings -- Regression Model -- Specification 1: Dependent variable is the rating as of end-2006 -- explanatory variables for 2005 -- Specification 2: Dated model: dependent variable as of end-2006 -- but if the rating was established in year t, then use explanatory variables for year t-1 -- Model Validation Using Within-Sample Predictions -- Model Validation Using Cross-Comparison between Agency Ratings -- Modeling of New Ratings and the Very First Rating -- Specification 3: Dated pooled model to test whether a first-time rating by an agency systematically differs from its subsequent ratings -- Specification 4: Dated model to test whether a first-time rating by an agency is systematically affected by an existing rating from another agency -- Predictions for Unrated Developing Countries -- Summary of Results and Policy Implications -- Notes -- References -- CHAPTER 6 Beyond Aid: New Sources and Innovative Mechanisms for Financing Development in Sub-Saharan Africa -- Introduction -- Trends in Financial Flows to Sub-Saharan Africa -- Official aid continues to be the dominant source of external finance for Sub-Saharan Africa
FDI flows to Sub-Saharan Africa were comparable to other regions, but appear to be mostly in enclave sectors -- Private debt flows to Sub-Saharan Africa are small and short-term -- Portfolio equity flows were almost absent in Sub-Saharan Africa excluding South Africa -- Personal and institutional remittances are a growing source of external financing for Sub-Saharan Africa -- Capital outflows from Sub-Saharan Africa have decreased in recent years, but the stock of flight capital abroad remains high -- New Sources and Innovative Mechanisms for Financing Development in Sub-Saharan Africa -- New Sources of Financing -- Diaspora bonds -- Reduced remittance costs -- Innovative Structuring -- Guarantees -- IFFIm, AMC, and other innovative structuring by public-private partnerships -- Future-flow securitization -- Recovery of stolen assets -- Positive effects of sovereign ratings on market access -- Conclusion -- Notes -- References -- Index -- Back Cover
This book argues that poor countries need additional, cross-border capital channeled to the private sector for employment generation, growth, and poverty reduction. For that, innovative financing mechanisms are necessary. The volume brings together various market-based innovative methods of raising development finance including securitization of future flow receivables, diaspora bonds, and the role of shadow sovereign ratings in facilitating access to international capital markets
Description based on publisher supplied metadata and other sources
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2020. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries
Link Print version: Suhas, Ketkar Innovative Financing for Development Herndon : World Bank Publications,c2008 9780821376850
Subject Economic assistance -- Developing countries.;Finance -- Developing countries.;Developing countries -- Economic policy -- Finance
Electronic books
Alt Author Ratha, Dilip
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