Title: Multi-stakeholder Consultation on Financing for Development in the Asia-Pacific Region.
1 Multi-stakeholder Consultation on Financing for
Development in the Asia-Pacific Region.
Organised by The United Nations - Department of
Economic and Social Affair in collaboration
with Association of Development Financing
Institutions in Asia the Pacific
Development Financial Institutions at
Cross-roads Rethinking their Role Systemic
Reforms
Dr. Sailendra Narain Chairman Cent
re for SME Growth Development Finance
(CESMED) ( Email - snpn_at_vsnl.net )
Presented by
2DFIs and Economic Development
DFIs Systemic and institutional importance
DFIs contributions in the last 5 decades
Millennium Goals
- Financing for Development (FfD)and role of
DFIs
3DFIs at Cross- Roads
- Development Financial System going out of focus
- DFIs sagging financial health made them
uncompetitive - DFIs Obstacles Limitations
4Development Financing An Overview
- Regional Economic Contributions by DFIs
- Asia - Africa - Latin America
- Greater Mekong Sub-region (GMS) Economic
Corridors - India- DFIs Performance FICCI Survey results
5GMS Economic Corridors
6Indian DFIs Performance
(Rs. Million)
Year Sanctioned Disbursed
1998-99 8103 5905
1999-00 10197 7097
2000-01 11908 7650
2001-02 7969 6389
2002-03 3629 3072
7Indian DFIs - FICCI Survey Results
RESPONDANTS REPLIES- GRAPHIC PRESENTATION (
Source FICCI Research Paper )
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12Whether Development Finance Still Relevant ?
- The Premise
- - Development financing as a system and DFIs as
an - institution are central essential for
development -
- - DFIs commercial banks should co-exist
rather than - compete
- - Given this premise
- DFIs need to be made competitive viable
- DFIs traditional role must change with
systemic reforms -
13Suggested Road-Map
- DFIs to be brought back in sharp focus
- Policies of Governments Central Banks to be
re-oriented - Friendly enabling environment, level-playing
field, restructuring - and setting up special fund for resource
support - Linking Micro Finance Institutions (MFIs) with
formal DFIs
14Issues for Discussion
- Are DFIs still relevant? Whether they should
perish or survive ? - If DFIs are central to the development process,
how can they - be made viable, relevant and competitive?
-
- If a three-tier development financial system is
suggested - (i) Apex DFI (ii) Regional DFIs and (iii) Local
DFIs (MFIs) - will the system be viable and effective?
- To tackle Cost of Resources problem,,how about
creating - DFIs Development Fund at Regional levels by
federating DFIs of a few countries (such as all
DFIs of Mekong Region six countries) with
sovereign guarantee, political risk cover from
MIGA / World Bank, and better rating.This
Regional Fund with strong rating and can attract
resources at affordable rates and on-lend to
member DFIs for operations. - Perhaps ADFIAP can take a lead in setting up a
DFIs Development Fund for the Greater Mekong
Region as a pilot project, in which Governments,
financial institutions, multilateral institutions
and private sector could become stakeholders.
15THANK YOU