Funding Gap Research Articles

Challenges of green startups in the post-soviet economies

This article delves into the difficulties faced by environmentally conscious startups in the post-Soviet economies. The breakup of the USSR gave rise to a period characterized by economic restructuring and a shift towards market-based economies, but green startups encounter numerous obstacles arising from a lack of entrepreneurial expertise, insufficient funding, and complex regulations. In Russia, the dominance of the oil and gas industry hampers the drive for alternative energy ventures, while Ukraine, Belarus, and Moldova grapple with funding gaps and infrastructure deficiencies. The South Caucasus countries face issues related to oil dependency, burdensome regulations, and limited access to funding, while the Baltic states prioritize swift innovation and adeptly navigating regulations. Central Asian nations, blessed with abundant natural resources, face challenges including regulatory restrictions and geopolitical complexities that impede the transition to green practices. Collaborative efforts are vital in overcoming these hurdles, enabling regulatory reform, strengthening sustainable initiatives, and fostering innovation to promote the growth of green startups in these economies.

Earnings Per Share, Dividends Per Share, Dividend Yield and Firm Size on Share Price Behaviour of Manufacturing Firms in Nigeria: Causal Effect

The manufacturing sector was favorable, contributing to Nigeria being perceived more as a state of consumption than production. Despite promoting Nigeria as having the largest market in Africa, the manufacturing sector faced economic slowdowns due to rising business costs, power supply issues, and weak infrastructure. The main issue arises from the low share prices of manufacturing firms in Nigeria compared to other sectors, potentially resulting from inadequate patronage or ineffective trading on the stock market. This lack of effective trading reflects on the firm's value, discouraging investors and highlighting a financial capacity gap hindering productivity. To address this, using earnings and dividends as incentives can attract investors, bolstering capital and driving manufacturing to full capacity. This study investigate the relationship between earnings per share, dividends per share, dividend yield and firm size on share price behaviour of manufacturing firms in Nigeria between 2013 and 2022. The study adopts an ex-post factor research design, while a granger causality test was used. Fifteen (15) manufacturing firms were selected while data were sourced from the selected manufacturing firms financial audited reported. The inferences were made at 5 percent significance. The causality effect of earnings per share, dividends per share, dividend yield and firm size on share price behaviour of manufacturing firms in Nigeria indicate a unidirectional causality from DPS to Lagged Share Prices (LSP). However, the reverse relationship (LSP to DPS) is not statistically significant, indicating that past share prices do not reliably predict future dividend payments. For Dividend Yield (DY) and LSP, a unidirectional causality from DY to LSP was observed, suggesting that changes in DY can predict future stock prices. The study recommended that manufacturing firms in Nigeria should prioritize enhancing the transparency of their earnings reporting. Clear communication and detailed disclosures regarding financial performance can build investor confidence and potentially strengthen the relationship between EPS and share prices.

Blended finance as a catalyst for accelerating the European heat transition?

Against the background of accelerating climate change, this paper examines to which extent sustainable infrastructure finance can effectively contribute to the European heat transition as a part of a “Great Transformation” towards a climate neutral economy and society. Since the building sector is responsible for approximately 35% of the EU's carbon footprint, district heating and cooling networks can provide an efficient technology for decarbonizing the energy supply of buildings. New district heating and cooling networks technology allows for heat and hot water generation that is combustion free. A large-scale role-out of this infrastructure would require hundreds of billions EUR of investments within the next few years. In view of the high public debt, the public sector will not be able to finance the required investment volumes. Against the background of regulatory changes, such as the EU Action Plan on Financing Sustainable Growth, this paper examines in which way financial markets participants might be able to fill the funding gap. A particular focus lies on blended finance, since related instruments reduce investors' risks, esp. in early stages of the infrastructure lifecycle. Due to an improved risk-return-relationship this makes the investment more attractive to private investors. It is also essential for investors to understand the kind of business model they invest in. Therefore, we discuss the importance of key performance indicators in the four dimensions that are relevant for the investors' decision-making process: return, risk, liquidity and sustainability. With respect to the sustainability dimension, we elaborate on the relevance of EU-Taxonomy-aligned district heating and cooling networks' construction and operation.

Industry 4.0 in Finance, Digital Financial Services and Digital Financial Inclusion in Developing Countries: Opportunities, Challenges, and Possible Policy Responses

Fintech and the adoption of Fourth Industrial Revolution (industry 4.0) technologies have expanded the provision and uptake of digital financial services (DFSs) globally. Digital transformation in the financial industry intended to modify financial service provisioning by reducing the costs of accessing and challenges such as inaccessibility due to remoteness, not having a bank account, not having a credit history, or having erratic incomes. Digital financial inclusion (DFI) aims to ensure that financial services, such as deposits, payments, transfers, withdrawals, investments, accessing insurance and credit, checking account balances, receiving money, and making international remittances, are conducted conveniently, easily, safely, reliably, and affordably. DFI focuses on ensuring access to financial services through digital channels and platforms for individuals, businesses, and households, to promote financial inclusion for all stakeholders, especially previously financially excluded groups. Through a critical review of the literature, this study explores the opportunities and challenges of DFI or the adoption and use of DFS. The review unpacks the possible benefits of using DFSs, which include the broadening financial inclusion, increasing diversity and innovation in the financial services sector, attainment of the SDGs, reduction of poverty, increased economic growth, and minimization of the gender financial inclusion gap, as well as reduction in inequalities. The constraints include the inadequacy of digital infrastructure, taxes on DFS, literacy challenges, digital exclusion, poverty and the gender divide, risks, and lack of trust in the financial services sector. The study recommends appropriate regulation and oversight, literacy enhancement initiatives, investment in digital infrastructure, and increased consumer protection as measures to improve DFI in developing countries.

From concept to practice: financing sustainable blue economy in Small Island Developing States, lessons learnt from the Seychelles experience

Despite an international enthusiasm for private capital to meet the financing gap in sustainable development, private sector finance for sustainable development and blue economy is still a very small percentage of global investment. Repurposed bonds and debt for nature swaps have gaining support with policy makers, international organizations, and investors keen to align their investment with global goals and borrowing countries with large ocean domains seeking new sources of finance.The paper explores how those trends have generated new financing opportunities for Small Islands Developing States, a group internationally recognized vulnerable countries, using Seychelles experience in blue economy development and financing through a blue bond and a debt swap. Based on interviews of local and international actors selected for their engagement in Seychelles blue economy finance, the research showed both global and local drivers and challenges to successfully attracting and delivering on private finance.A favorable global policy and financing climate, international partners with technical expertise and ability to di-risk private investment, political will and stability, clarity of national priorities, accountable institutions and sound financial management were key factors in Seychelles’ success in securing private finance. However, implementation challenges were identified, from improved access to affordable finance to the strengthening the local enabling environment and private sector capabilities.High level of indebtedness and structural vulnerabilities of Small Island Developing States (SIDS) combined with the inequality of the global financing architecture, which favors creditors over borrowers’ needs, remain key challenges to address the financing gap identified by the global community. Stronger SIDS voices in financing fora are needed to ensure the fair and equitable financing of sustainable blue economy.

Scaling Up Private Sector Financing for Climate Change Adaptation in Zimbabwe: A Brief Literature Review

Developing countries such as Zimbabwe that are highly vulnerable to climate change, are struggling to close the funding gap for climate change adaptation largely due to constrained fiscal space, and also the inadequate climate finance flows from developed countries. This article reviews the existing literature relevant to closing the climate finance gap in Zimbabwe through scaling up funding from the private sector funding. The literature shows that current private sector flows for climate finance are far below what is required to meet the needs of the country. The paper presents literature review findings, and also identifies solutions for unlocking more domestic private sector finance for climate change adaptation. The findings of the study contribute towards informing government policy on climate change particularly with regards to the mobilization of additional finance.

NEP 2020: The Status of the Role of Infrastructure in Enhancing Physical Education Programs

Physical Education programs play a crucial role in promoting healthy lifestyles and holistic development among individuals, particularly in educational settings. This review paper aims to comprehensively examine the role of infrastructure in enhancing Physical education programs. Infrastructure encompasses various components such as facilities, equipment, and outdoor spaces. Understanding how these elements contribute to the effectiveness of Physical education programs is essential for optimizing student engagement, learning outcomes, and overall well-being. Physical Education, which includes social skills development, physical fitness, cognitive growth, and the acquisition of critical movement abilities, is a vital component in the promotion of lifetime health and general well-being. Physical education programs’ ability to succeed is largely dependent on the framework that encourages and supports learning. Physical Education program quality and results are significantly influenced by the infrastructure, which includes buildings, tools, and outdoor areas. A comprehensive range of services, materials, and facilities that are necessary to promote an atmosphere that encourages sports participation and active living are included in Physical Education’s infrastructure. Everything from well-equipped gymnasiums to accessible playgrounds support inclusiveness, accessibility, and engagement among a wide range of populations in addition to facilitating a variety of sporting activities. Infrastructure may contribute significantly to the advancement of physical activity, sports participation, and overall well-being by implementing a comprehensive approach that solves financing gaps, prioritizes sustainability, facilitates equal access, and cultivates community relationships. This study intends to investigate these possibilities to optimize infrastructure’s influence on physical education programs.

The joy and pain of being a harm reduction worker: a qualitative study of the meanings about harm reduction in Brazil

BackgroundAlthough harm reduction is highlighted as an effective intervention for alcohol and drug use, a funding gap for harm reduction interventions has been identified, mainly in low- and middle-income countries. In these countries, tensions between abstinence and harm reduction models have impaired the shift from punitive practices to evidence-based interventions committed to guaranteeing the human rights of people who use drugs. Since 2015, the Brazilian government has adopted a more punitive and abstinence-focused drug policy that jeopardizes the care of people who use alcohol and other drugs and the comprehension of the harm reduction workers' perspective in relation to their practice. Therefore, this study aimed to comprehend the meanings constructed by Brazilian harm reduction workers regarding their practices with vulnerable populations amidst a context of political tension.MethodsWe conducted 15 in-depth semi-structured qualitative interviews with harm reduction workers employed in public health services for at least 6 months. Data were analyzed using thematic analysis.ResultsThe thematic axis "The joy and pain of being a harm reduction worker in Brazil" was constructed and divided into four major themes: (1) Invisibility of harm reduction work; (2) Black, poor, and people who use drugs: identification with the service users; (3) Between advocacy and profession: harm reduction as a political act; (4) Small achievements matter. Despite the perceived invisibility of harm reduction workers in the public health and alcohol and drug fields, valuing small achievements and advocacy were important resources to deal with political tension and punitive strategies in Brazil. The findings also highlight the important role of harm reduction workers due to their personal characteristics and understanding of drug use behavior, which bring the target audience closer to actions within the public health system.ConclusionThere is an urgent need to acknowledge harm reduction based on peer support as a professional category that deserves adequate financial support and workplace benefits. Additionally, expanding evidence-based harm reduction interventions and community-based voluntary drug use treatment centers should be prioritized by public policies to address the human rights violations experienced by people who use drugs.

2022 TB programme review in Pakistan: strengthening governance, with better patient diagnosis and treatment.

In Pakistan, 84% of healthcare is provided by the private sector. We conducted an epidemiological and programme review for TB to document progress and guide further efforts. Surveillance and data systems were assessed before analysing epidemiological data. We reviewed the programme at federal, provincial and peripheral levels and compiled national data along with WHO estimates to describe the evolution of epidemiological and programme indicators. In 2021, of the estimated number of TB cases, 55% of overall cases and 18% of drug-resistant cases were diagnosed and treated respectively. The contribution of the private sector in case detection increased from 30% in 2017 to 40% by 2021. For newly diagnosed pulmonary TB cases, the overall proportion of confirmed cases was 52%. In 2021, testing for rifampicin resistance among confirmed cases was 66% for new and 84% for previously treated patients. The treatment success rate exceeded 90% for drug susceptible TB. The main challenges identified were a funding gap (60% in 2021-2023), fragmented electronic systems for data collection and suboptimal coordination among provinces. The main challenges prevent further progress in controlling TB. By addressing these, Pakistan could improve coverage of interventions, including diagnosis and treatment. Bacteriological confirmation using recommended diagnostics also requires further optimisation.

The role of financial market infrastructures in supporting a sustainable financial transition

This paper aims to describe the role of financial market infrastructures (FMIs), specifically central securities depositories (CSD) and international CSDs (iCSDs), in supporting a sustainable financial transition. It starts by laying out the central role of these FMIs in the centre of the financial value chain, where it plays a critical role in ensuring the smooth and efficient functioning, as well as stability of financial markets. FMIs operate multilateral technology systems and funnel vast amounts of data across multiple markets, including emerging markets and developing economies (EMDEs). The paper then highlights acute challenges in funding sustainability projects in those emerging markets and the need for solutions that help attract private capital and international investors. To help address some of these challenges, a case study is presented of Euroclearability and the establishment of efficient FMIs and secondary markets, drawing lessons from its current impact as a potential solution to bridge EMDE financing gap. A study of the impact of Euroclearability shows an average reduction in sovereign borrowing costs by 28bps, and 14bps for corporate borrowing costs. Additionally, Euroclearability is associated with greater liquidity in domestic sovereign bond markets, leading to higher trading volumes and lower bond yields in secondary markets. Finally, the paper delves briefly into the ways FMIs are well positioned to capture regulatory data flow and sustainability data. With strong track records in managing and quality-assuring data, FMIs can improve the processing of ESG metrics, such as regulatory disclosures, and facilitate the use of these new metrics between market participants.

SOUTH AFRICA: Infrastructure Funding Gap

SOUTH AFRICA: Infrastructure Funding Gap

Bridging the Gender-Based Financial Literacy Gap: An In-Depth Examination of Contributing Factors and Policy Recommendations for Equitable Financial Empowerment

Financial literacy is a critical life skill for individuals to make informed decisions about their investments or personal finances. However, studies have revealed a gender-based financial literacy gap, with women having lower levels of financial knowledge than men. While there is a general consensus that women have lower rates of financial literacy, there is less literature discussing the possible causes of this gap. Through interviews with experts and researchers in the financial literacy field, I seek to uncover the factors that influence financial literacy outcomes for men and women in America, and what can be done to counter the gender-based disparities in financial literacy rates. I concluded that a major factor of financial literacy is confidence in their ability to learn and handle personal finance. The best way to resolve this is by mandating financial education.

Catalyzing the growth of green bonds: a closer look at the drivers and barriers of the Canadian green bond market

PurposeThis paper aims to examine the Canadian financial sector’s reaction to opportunities and risks created by the green bond market in a low-carbon and climate-resilient (LCR) economy.Design/methodology/approachThe authors used a concurrent mixed methodological approach that undertakes an online survey and semistructured interviews with critical green bond market stakeholders.FindingsThe most significant market driver in Canada is the reputational benefit for stakeholders, i.e. its ability to meet the high demand for sustainable finance and the marketing potential of its green credentials. The major market barriers are transactional costs, i.e. additional tracking required for reporting purposes, lack of market liquidity and identification of environmental impact or additionality. Canadian green bonds are also more likely to be evaluated on their green impact than their global market peers.Research limitations/implicationsLimitations of this study include its focus on Canada, which may exclude or not apply to drivers and barriers in other green bond markets.Practical implicationsThe paper helps create an accounting-based conceptual framework for key motivations and barriers that affect financial decision-making regarding green bonds.Social implicationsThe authors identify economic and policy-related barriers and drivers for green bonds, addressing the financing gap for the LCR economy.Originality/valueTo the best of the authors’ knowledge, this study is the first to identify and compare Canadian green bond market drivers and barriers and to examine relevant stakeholder- and policy-related approaches that can be targeted to scale this market effectively.

How relevant is the individual’s levels of innovativeness in the investment decisions in equity crowdfunding campaigns?

PurposeThis study investigates the relationship between the individual’s levels of innovativeness (ILI) and the individual’s intention to finance (IIF) an equity crowdfunding campaign to understand whether and to what extent individuals' personalities (IP) can foster crowdfunding success.Design/methodology/approachOLS models are applied based on survey data collected from 385 US and UK citizen respondents. Further, the baseline relationship between ILI and IIF is broken down on the basis of the interactions with two behavioral characteristics: proactive personality (PP) and openness to experience (OE).FindingsResults show a positive relationship between individual’s levels of innovativeness and the individual’s intention to finance an equity crowdfunding campaign. Furthermore, this relationship continues to be positive when moderators are introduced in the models, demonstrating that PP and OE are personal traits that strengthen the main relationship.Originality/valueOur findings contribute to enriching the stream of literature according to which equity crowdfunding is a helpful tool not only able to bridge the financial gap of companies during the first phase of their life cycle. The findings also contribute to the development of the innovation process, creating also a social identity within the crowdfunding community.

The Fragmented Picture of Antimicrobial Resistance in Kenya: A Situational Analysis of Antimicrobial Consumption and the Imperative for Antimicrobial Stewardship.

Antimicrobial resistance (AMR) jeopardizes the effectiveness of essential antimicrobial agents in treating infectious diseases. Accelerated by human activities, AMR is prevalent in Sub-Saharan Africa, including Kenya, due to indiscriminate antibiotic use and limited diagnostics. This study aimed to assess Kenya's AMR efforts through a situational analysis of policy efficacy, interventions, and implementation, culminating in recommendations for strengthening mitigation. Employing two methodologies, this study evaluated Kenya's AMR endeavors. A systematic scoping review summarized AMR dynamic, and an expert validated the findings, providing an on-the-ground perspective. Antibiotic resistance is driven by factors including widespread misuse in human medicine due to irrational practices, consumer demand, and substandard antibiotics. Heavy antibiotic use in the agricultural sector leads to contamination of the food chain. The National Action Plan (NAP) reflects a One Health approach, yet decentralized healthcare and funding gaps hinder its execution. Although AMR surveillance includes multiple facets, diagnostic deficiencies persist. Expert insights recognize proactive NAP but underscore implementation obstacles. Kenya grapples with escalating resistance, but commendable policy efforts exist. However, fragmented implementations and complexities persist. Addressing this global threat demands investment in healthcare infrastructure, diagnostics, international partnerships, and sustainable strategies.

Technology-mediated education for marginalized populations: financial literacy gap

A person's financial attitude includes thoughts, attitudes, and confidence in managing money. A positive financial attitude is crucial for responsible financial behavior and long-term well-being. Financial literacy includes behavior and financial consequences, not just information and abilities. The themes above are linked to financial behavior, including saving, spending, debt management, and investment choices. Technology in financial education may reduce financial literacy gaps in emerging nations. Technology-mediated financial education is scalable, cost-effective, adaptable, and can reach populations with inadequate financial services, according to this study. Financial literacy research should provide empirically supported distribution strategies based on target population characteristics and contextual needs. Computer literacy, language, and cultural appropriateness issues require more research. Evaluating digital inclusion and divide reduction efforts is crucial. However, this system has unique challenges. An extensive literature review over the previous decade was conducted using "ABIInform," "EBSO Host," "Emerald," "Google Scholar," "Science Direct," "ProQuest," "Web of Science," and "ERIC." The study used "financial literacy," "technology-mediated," "financial education," and "developing countries." Insufficient infrastructure, access, linguistic and cultural barriers, and community alienation are the impediments. Insignificant. This study critically reviews technology-mediated financial education literature in developing nations. A complete assessment of long-term consequences, a comparative examination of distribution techniques, and a research methodology are needed. This study focuses on how the digital divide affects underprivileged communities' financial literacy. Due to the need for more knowledge, more research is needed on how limited technological access affects financial understanding. Addressing this deficit requires more investigation.

Legitimising green monetary policies: market liberalism, layered central banking, and the ECB’s ongoing discursive shift from environmental risks to price stability

ABSTRACT Through the analysis of ECB Executive Board member speeches, we have identified three main narratives about the consequences of the environmental crisis in the monetary authority's spheres of influence: The first emphasises environmental phenomena as financial risks; the second highlights the green investment or financing gap; and the third focuses on the impacts of climate change on price stability. These narratives lead to different forms of legitimisation in terms of why and how the central bank should intervene to tackle climate change. We show that the third narrative is displacing the first as the dominant discourse around ECB climate policy. The shift in focus from the central bank's duties to maintain financial stability to its responsibilities regarding price stability under the primary mandate could lead to far-reaching green monetary policies. However, based on the concept of layered structures, we argue that this change does not signal a departure from market liberal central banking but rather a shift within the prevailing system. What we are witnessing is a new form of market liberalism adapted to climate change, or market liberalism in climate crisis mode.

Pension funding gaps: do mandated external governance mechanisms matter?

PurposeThis study aims to examine whether and how the experience of specialized external governance mechanisms mandated by the Employee Retirement Income Security Act of 1974 – the actuary and auditor – affect pension plan funding.Design/methodology/approachThis study uses data from annual pension plan regulatory reports (Form 5500), Form 10-K filings, Form DEF 14A filings (company proxy statements) and publicly available data sources. The hand-collected data include information related to the pension plan’s actuary and auditor and various pension plan data disclosed in the company’s financial statement footnotes.FindingsThe author finds that more experienced actuaries and auditors are associated with better funded pension plans, especially when the company has higher financial risk or lower board independence. Additional analyses indicate that companies with more experienced actuaries and pension plan auditors are more likely to make higher annual pension plan contributions and hold fewer Level 3 fair value assets.Originality/valueThe dearth of pension plan governance research generally focuses on whether and how internal governance mechanisms affect pension plan funding. To the best of the author’s knowledge, this is the first empirical study of the relationship between external pension plan governance mechanisms and pension plan funding.

Latest data show funding gaps remain in disaster‐related giving

Funding for disasters and emergency response from foundations, corporate giving departments and other funders in the U.S. and abroad dropped off significantly in the year after COVID‐19 struck, but was still quite a bit higher than pre‐pandemic levels, according to the latest data from the Center for Disaster Philanthropy and Candid.

Study shows funding gaps remain in disaster giving

Study shows funding gaps remain in disaster giving