International Development Banks Research Articles

Design by Transitional Committee: learning from the Green Climate Fund

ABSTRACT In 2022 at the UN climate conference in Sharm el-Sheikh (COP27), countries agreed to establish a new fund for loss and damage. This decision was one of the most significant outcomes of the COP, and something Small Island Developing States had spent the previous three decades calling for. The approach taken to realize this new funding arrangement includes many similarities to that taken to create a similarly significant new fund twelve years earlier – the Green Climate Fund (GCF) – including its design by a Transitional Committee. The aim of this article is to assess the extent to which the ambitions for the GCF have been realized, with a view to informing the ongoing design and early implementation of the new fund. To do this, the article compares the GCF’s present-day outcomes to its original intentions as described by the COP16 decision text. This paper finds that the GCF’s operation today only partially reflects the ambitions expressed at COP16. While the ambition for a Board with equal representation by developing and developed countries has been achieved, ambitions to expand the sources of finance and increase funding for adaptation have been mixed. The influence of the World Bank was a key point of tension over the GCF’s Transitional Committee period, and the Bank continues in the Trustee role today. The role of the Committee’s Technical Support Unit – the group of staff seconded from various international development banks and agencies to provide technical and administrative support to the GCF’s Transitional Committee – had an outsized influence on the shape of the GCF, such that these organizations continue to receive the bulk of GCF funding today. These findings suggest a greater plurality of voices providing such technical inputs would enhance the design of new funding bodies. The creation of new international finance institutions is relatively rare, so understanding the history of the GCF’s design is important for contextualising discussions about other climate finance options.

Трансформация структуры государственного долга по составу кредиторов в странах Центральной Азии и Южного Кавказа

The rapid growth of public debt in developing countries in recent years and the increasing risks associated with this process emphasize the importance of research in this area. The article examines one of the key aspects of public debt management — the structure of creditors’ debt portfolio. The object of the study is the public debt of four countries of Central Asia and three countries of the South Caucasus. The states of this region are important foreign economic partners of Russia, their contribution to mutual trade and realization of joint projects is growing. Their role in the global and regional economy is also expanding, including participation in major transport and logistics projects designed to increase the connectivity of Eurasia. The study is based on the data of international organizations on the total volume of public debt, debt to individual external creditors and the dynamics of macroeconomic indicators. The article examines changes in the structure of the main groups of creditors for each country over three long-term periods and analyzes similarities and differences in the observed structural shifts. It also decomposes the indicator of public debt dynamics and estimates the contribution of the economic growth factor and the effects of changes in countries’ debt to certain groups of creditors. The study identified the following key trends in public debt structural changes: 1) the declining role of bilateral loans from developed and developing countries since the 2000s; 2) the continued strong influence of debt raised from international financial organizations and development banks in most countries throughout the period under study; 3) in a number of countries, a gradual increase in market sources of debt financing (domestic and Eurobonds); the increasing role of loans from China — in the Kyrgyz Republic and the Republic of Tajikistan, etc. The study identifies reasons for these structural changes, and concludes with a discussion of the risks associated with the observed shifts in the structure of public debt.

The Role Of International Financial Reporting Standards (IFRS) In Enhancing The Quality Of Financial Reporting Applied Research In a Sample Of Iraqi Banks Listed On The Iraq Stock Exchange

The aim of the research is to show the importance of applying IFRS standards at the international and local levels in Iraqi banks and its reflection. This research used statistical methods and indicators, as the data were collected through the distribution of questionnaires to a sample of international development banks, and Gulf commercial banks, to accountants and auditors working in Iraq, where they were distributed to (226) participants and analyzed using SPSS v 26 and Amos v 26, as well as a study comparing the impact of the application of IFRS-9 before and after by analyzing the financial statements of the above banks. The research included the study of several topics, including an overview of IFRS standards and the quality of financial reports, the definition of international financial reporting standards, the objectives of financial reports prepared for public use, the importance of IFRS, the quality of financial reports, the factors affecting the quality of financial reports, the importance of IFRS standards, the factors affecting the quality of financial reports, the challenges faced by banks in preparing financial reports, the application of IFRS standards, the impact on the performance of banks, the application of IFRS standards, the fair presentation of the financial position, the application of IFRS standards and the presentation of cash flows to banks, and the reality of adopting IFRS standards in Iraqi banks. The research concluded that the presence of interest of Iraqi banks in the application of financial reporting standards in order to enhance the quality of financial reporting, that the level of impact of International Financial Reporting Standards (IFRS) in enhancing the qualitative characteristics of accounting information among Iraqi banks (the research sample), all of which increased the application of IFRS, reflected positively on the qualitative characteristics of accounting information. The research contributes to financial institutions such as banks and banks as a means of providing external users, investors and at all levels with the financial data and information necessary to make rational and correct decisions after the application of IFRS standards.

Indonesia Transport Loan Projects: Development Outcome Attributions (DOA) on Unemployment, Growth, and Poverty

Our goal was to investigate the effects of international development banks' foreign exchange loan-funded transportation projects. We examined the effects and efficacy of Indonesia's transport loan projects, which were supported by the World Bank and the Asian Development Bank (ADB), to achieve this, 67 projects of $8.85 billion in value were undertaken between 1972 and 2020. This study is significant because it is the first in the history of development assistance—after 100 years—that is based entirely on banking theories and practices, employing attribution techniques and presuming that all loans will be disbursed into Indonesia's economy. Nevertheless, the effectiveness narratives are untrue because—after being converted into Rupiah—less than 10% of the loan fund made it to Indonesia's economy. According to our analysis, the loans from both banks decreased growth by 200% and increased poverty by 220%, even if they were successful in providing jobs. The disbursement delays of five to seven years result in capital outflows of more than $26 for every $1 loan. Fixing this necessitates a 100% payout in Rupiah into Indonesia's national banking systems the same year that the loan agreements are executed.

Evaluating the performance of IT management under the implementation of the COBIT 2019 framework

The study aims to identify the concepts and principles of the COBIT framework 2019 and its role in evaluating the performance of information technology management. Work efficiency, keeping pace with modern trends, and assisting in strategic decision-making This study was adopted to demonstrate the impact of the 2019 COBIT framework for evaluating the performance of information technology management on data obtained from the International Development Bank to link study variables and prove its hypotheses. The study reached several conclusions, the most important of which is that the COBIT 2019 framework is one of the most important control frameworks that can be integrated with the Balanced Scorecard (BSC) technology to enhance confidence and internal control procedures and fill gaps in the economic units that use information technology in their activities.

Bankruptcy and international intervention: The case of Addiko bank

AbstractIn 2014, the Austrian bank Hypo Group Alpe Adria was purchased by the American banking group Advent International, and the European Bank for Reconstruction and Development (EBRD) and re‐branded as Addiko bank. In this paper, I explore how this purchase of Addiko Bank by an international multilateral development bank (MDB) affected exporting firms in Croatia. Using a difference‐in‐differences specification to investigate whether there was a meaningful effect of this turnover on firm performance, I find that the turnover of Addiko bank led to a $160,000 decrease in loans taken out by firms. However, this effect seems to occur immediately after the turnover, and vanishes over time. This effect is seen among domestically‐owned firms and non‐manufacturing firms, but not multinational affiliates and manufacturing firms. Additionally, I find no effect of this turnover on firm revenues. These results indicate that after an initial period of turmoil, the intervention by EBRD and Advent International had no lasting negative effects on firms in Croatia. The intervention by a MDB can help reform a financial sector and will not necessarily lead to detrimental effects at the micro‐level.

International legal nature of multilateral development banks

The article examines the theoretical foundations of the international legal nature of multilateral development banks. The methodological basis of the study was a complex systematic analysis of legal phenomena, as well as private scientific methods of knowledge: formal-legal, historicallegal, and comparative-legal. It indicated that multilateral development banks are international organizations that meet all the characteristics of subjects of international law – they have their own will, competence, and responsibility. Multilateral development banks are international organizations of a special type that combine public and private foundations in terms of competence. It noted that multilateral development banks create conditions for cooperation between states in matters of financing the economy. Development banks created as international organizations based on multilateral agreements for joint management of international settlements in the field of financial cooperation. Multilateral development banks as subjects of international law are capable of responding quickly to changes in the world economy. The purpose, tasks, functional features of multilateral development banks constantly being transformed, which corresponds to modern trends in the development of international legal and economic relations. It indicated that multilateral development banks, as international intergovernmental organizations, have their own legal personality and do not fall under the jurisdiction of the national states on whose territory the headquarters are located. Development banks have international immunities and privileges that are functional in nature. A feature of the legal status of multilateral development banks, as subjects of international public law, is the combination of public and private functions due to the private law and public-law nature of their activities. This manifested in the fact that the financial operations of international multilateral development banks are similar to market financial operations, but credit agreements are international contracts concluded with states. A special aspect of the legal activity of development banks is the influence on social and economic reforms in member states by financing development programs.

The Role of Financial Structure Balance in Ensuring the Iraqi Bank Financial Health )An Analytical Study of A Sample of Banks Listed in Isx-Iq For the Period: 2015-2020)

Purpose-The research aims to find the role of the financial structure balance in ensuring the financial health of Iraqi banks. Design/ methodology/ approach- The current study is an analytical study; it uses different indicators (metrics) for the financing structure, represented by financing with ordinary shares (equity), financing with retained earnings, financing with debts, and financing with deposits. Moreover, measures of net current assets, accumulated profits employment, real production capacity, and the value of expected bankruptcy were used as measures of financial health. Data were collected from 20 banks listed on the Iraq Stock Exchange as a sample for the study out of 44 banks for the period from 2015 to 2020; the study also adopted two financial hypotheses: the first financial hypothesis was that the banks of the study sample depend in their operational actions on balanced financing structures, and the second hypothesis states that the banks in the study sample enjoy financial health systems that make the avoid various financial problems in the future. The statistical hypothesis, states that there is a significant influence relationship between the budget of the financial structure and ensuring financial health. Findings -The study concluded that all Iraqi banks do not have financial health systems. Recommendations -The banks that do not have Financial health (Gulf Commercial Bank, Al-Atta Bank, Al-Mansour Bank, Baghdad Bank, International Development Bank, and Region Trade Bank) must rely on a balanced financing mixture that depends basically on financing with ordinary shares (equity) to improve their financial health.

BANKING PROJECT FINANCING OF PUBLIC-PRIVATE PARTNERSHIP AND ITS ROLE IN ENSURING PUBLIC WELFARE

The article reveals the peculiarities of the use of bank project financing in the field of PPP. It is substantiated that the peculiarity of the application of PPP project financing is the creation of a special project company, which is responsible for mobilizing financial resources for project implementation; the presence of a hierarchy of investment; more objective assessment of the borrower's solvency and reliability and evaluation of the project itself in terms of its efficiency, security and risk; significant transaction costs to settle the interests of all members of the partnership.
 It is proved that in modern conditions the role of project bank lending in the sources of project financing is growing rapidly, and the role of banks in this process is much wider than in traditional forms of lending. They not only provide financial support for the project, but also become direct participants in the implementation of the PPP project, performing management, settlement, consulting, guarantee and other functions. Given the specifics of PPP projects (large scale, long implementation time, cost), the participation of commercial banks in their financing is complicated. International development banks and international financial institutions play a leading role in the formation of project financing in the field of PPP, and the syndicated lending mechanism is also used in foreign practice. However, in Ukraine, bank project financing is practically underdeveloped, which is due to its institutional and legal irregularities. The use of syndicated lending mechanisms in Ukraine is unique, as well as the financing of PPP projects through credit and export agencies. PPP project financing with the support of international financial institutions, in particular the EBRD, has been the most developed, concentrating in such areas as infrastructure development, energy reform, and construction. In this regard, the problems of economic, legal and managerial nature, which hinder the development of bank project financing in the field of PPP in Ukraine in modern conditions, are outlined.

Climate Change Impacts on Water Resource and Air Pollution in Kabul Sub-basins, Afghanistan

This Climate Change Impacts on Water Resources and Air Pollution,research is carried out to analysis Hydro-meteorological and groundwater data in Kabul Sub-basins, Afghanistan. The main objective of this research is to find out natural causes of climate change effects on surface and to,groundwater resources and air pollutions, these data are collected from diferent Hydrometeoroiogical stations and observations in Kabul Subbasins for different years (1957 to 2017). For completion this research they used two categories of data analysis; one is hydro meteorological analysis,and the other is groundwater level analysis. In hydro meteorological analysis air temperature, rainfall and discharge have been recovered by this research in Kabul Sub-basins, a number of air temperature, rainfall,discharge of surface water and groundwater are changes due to climate changes from 1957 to 2017. For climate changes effects this article used air pollution data of national, international development bank of Asia,WHO standards and parameters; PM2.5, PM10, TSP, NO2, SO2, O3, CO and Pb. From comparing PM10 are very higher in the air of Afghanistan. The discharge of Panjsher river due to glacier melting and climate changes increasing. The challenges during this research are lack of equipment.

Integration between the Blue Ocean Strategy and the Value Chain and its Role in Achieving Competitive Advantage: An Applied Research in the International Development Bank

The research aims to demonstrate the role of integration between the blue ocean strategy and the value chain in achieving competitive advantage through their application in the International Development Bank, as economic units, including banks, face intense competition at the local and international levels within the contemporary work environment, therefore, they had to prepare and implement new strategies that enable them to withstand the challenges imposed by competition in order to maintain and achieve its goals, as technological developments and market changes stemming from changes in the tastes and desires of customers have led to the development of these strategies, including the blue ocean strategy, which derives its name from the concept of blue oceans, which are calm and clear because they are far from the atmosphere of competition. This strategy is implemented through its four dimensions (reduction, exclusion, increase, innovation). Nevertheless, to apply these dimensions, the value chain contributes to the analysis of activities into value-adding and non-value-adding activities, thus applying the dimensions of strategy at the level of each activity in order to achieve value for the economic unit and the customer. Furthermore, the research reached a set of conclusions, the most important of which is the integration between the blue ocean strategy and the value chain, a framework that contributes to reducing and excluding costs for activities that do not add value, in addition to creating advanced banking services for customers that achieve a competitive advantage for the bank.

International Development Banks as Centers of Technological Exchange: Is Future Here?

The problems of technological exchange and technological development are becoming the most important for all groups of countries. Developed countries want to maintain their dominant position, developing countries try to catch them up, and the least developed countries try not to be a raw materials appendage of both the first ones and second ones. Technological convergence can become the answer to the challenges for all countries. The article's aim is to form theoretical approaches to technological convergence with the development banks participation. The main challenge of the article is the lack of statistical data on the subject, just as the novelty of the scientific field covering technologic convergence itself. The main article's results are the development of a more equitable technological convergence model, the technology exchange model in Asia, the financial mechanism's development for technological convergence through development banks and proposals for development banks entering the suggested technological convergence track. Thus, the answer to the question posed in the title is negative, as modern development banks cannot effectively cope with the technological exchange. The key contribution of the article is the creation of the theoretic model for the Asian international development institutions on the technology exchange mechanisms, just as the model of attracting financial resources to the project in the field of technology, interconnected with each other.

The global financial safety net: Evolution of the anti-crisis function in the global financial architecture

In the global financial architecture, the functions of anti-crisis support and macroeconomic stabilization are performed by the institutions of the global financial safety net (GFSN). The volume of available financing within the framework of GFNS has grown 10 times over the past decade and reached the equivalent of 4% of world GDP. The literature’s standard understanding of a system of national reserves, swap agreements, regional financial mechanisms, and the IMF requires enlargement. The article proposes the concept of an enlarged global financial safety net, namely by including two new elements — multilateral development banks and bilateral financial support. The manifestations of this phenomenon in many regions of the world are shown in the activities of the largest international development banks and at the level of macroeconomic stabilization financing by individual donor countries, including during the current COVID crisis.

The role of international development banks in implementing digital technologies

The role of international development banks in implementing digital technologies

TOOLS FOR FINANCING ECOSYSTEM-BASED ADAPTATION TO CLIMATE CHANGE

The article aims to determine the "portfolio" of financing ecosystem-based adaptation to climate change based on the analysis of traditional market instruments used to preserve, maintain and restore ecosystem services and biodiversity. The definition of ecosystem-based adaptation, its qualification criteria and elements of their application in contrast to traditional economic measures for biodiversity and nature conservation are revealed. The relevance of using ecosystem and nature-based approaches to adapt to climate change and reduce the risk of natural disasters given the increasing frequency of extreme weather events associated with climate change – severe droughts, floods, heatwaves, storms and other hazards are explored. Accordingly, the urgency of adaptation to climate-related risks and hazards in different economic sectors, e.g. agriculture, land use, fisheries, and natural components with a focus on the climate impacts prognosis for the European region, using effective and affordable measures with additional long term social and environmental benefits are explained. Trends and specific gaps in the international experience in financing climate adaptation measures are considered. The most common instruments for financing nature-based solutions and ecosystem-based adaptation to climate change, which are already used in world practice or have the potential of their practical implementation in various sectors, including environmental and carbon taxes, subsidies, tradable environmental permits, risk insurance, obligations, debt and equity instruments, as well as innovative forms of green loans, green bonds, and climate-related insurance types are systematized and represented. The specifics of financing such measures through international funds, development banks and European Union funds are considered. Possibilities of integrating financing of ecosystem-based adaptation to climate change to the current processes of climate change adaptation policy development of Ukraine, particularly in the context of performance of obligations under the Paris climate agreement, are considered.

Конец эпохи энергетического угля

The article analyses the process of coal crowding out of the world energy balance. In developed countries, the tendency towards the rejection of using energy coal accelerated in the end of 2000s under the pressure of climatic considerations. The global COVID‑19 pandemic has led to the acceleration of the world energy balance restructuring at the expense of lowering demand for coal. Coal is crowded out from energy consumption for both climatic considerations as well as because of the strong harmful effect of coal power plants emissions on health. Developed and an increasing number of developing countries strengthen and expand complex of measures aimed at coal energy displacement: emissions trading systems and direct emissions tax, Coal Plant Directive and closures of coal mines. Decarbonisation has been accelerated after Pittsburgh Summit (2009) and Paris Agreement (2015). By 2020, developed countries have largely abandoned direct subsidies for coal consumption, and all major international development banks have limited their involvement in coal-fired generation and have stopped considering coal mining projects. Developing countries continue support coal consumption and production in order to maintain economic growth and employment. Excessive supply will lead to overstocking of the coal market, lower prices and slowdown of the decline in coal consumption after COVID‑19. Although several largest economies in the Asian-Pacific Region, primarily China, India and Indonesia, continue to increase coal generation capacities (HELE plants), the analysis in the article shows that after the accomplishment of the recovery growth in the world economy by 2025, global demand for energy coal will start to steadily decline. China announced plans to curtail coal use after 2025, G‑7 decided to stop financing coal projects. Meantime many developing countries with low level of income and modest financial capacities cannot afford to quit comparatively cheap coal quickly as a factor supporting economic growth. Increasing High-Efficiency, Low-Emissions coal plants demand is rapidly rising requirements to coal quality.

Інноваційні боргові фінансові інструменти державних банків розвитку

The current trend and activity of development banks is to attract and allocate resources for sustainable financing, which takes into account the consequences for the environment, social sphere and corporate governance. The framework of sustainable bonds is part of the broad agenda of the UN Global Compact to continue to provide private capital for sustainable development. The aim is to inspire key players in the investment value chain to create a market for investments with sufficient scale, liquidity and diversification to attract large institutional investors and finance a wide range of private and public sector activities. The potential for expanding the market for sustainable development bonds is very significant, although their share in the global volume of debt instruments does not exceed 1%. National development banks are able to be leaders in issuing green, social and sustainable bonds to finance projects that meet the interests of society. These institutions can play a more active and effective role if governments clearly articulate their mandate to achieve the goals of sustainable development. Allocation of resources will be possible subject to the adoption of a national strategy for sustainable financing, which provides for the attraction of resources in capital markets, joint financing of projects with private banks, strengthening cooperation with international donors. The national development banks (NDB), in contrast to international or multilateral development banks, better identifies the needs and gaps of the national economy for financial resources. Compared to commercial banks and investment funds, they have a greater potential for risk-taking than financial intermediaries, providing long-term financing in local currency. Also, the NDBs are able to raise resources in international and local capital markets cheaper than private institutions, but this requires the preparation and implementation of a mechanism for issuing bonds, reporting on global standards

Multilateral Development Banks: Counter-cyclical Mandate and Financial Constraints

Abstract Given their attractiveness as a source of financing for the least developed countries, multilateral development banks (MDBs) have grown in quantity and size supported by their sources of financing. We believe that this ‘resource dependency’ has not been sufficiently questioned in the literature, especially regarding the credit exposure these organizations have with their largest borrowing members. This article characterizes and identifies the differential effects of the three sources that make up the dependence on resources in the MDBs: capital contributions, leverage in the markets and their credit function. We analysed these sources particularly at the International Development Bank (IBRD), the Inter-American Development Bank (IDB) and the African Development Bank (AfDB) and in two recent events: the risk exchange implemented by the referred MDBs in 2015 and the effect of the Argentina’s selective default on the IDB’s capital adequacy (2014). We find an increasing relevance of leverage and the size of loans, which models a dependence on resources that weakens the development mandate of these organizations.

ДЕЯТЕЛЬНОСТЬ МЕЖДУНАРОДНЫХ РЕГИОНАЛЬНЫХ БАНКОВ РАЗВИТИЯ В УСЛОВИЯХ КОРОНАВИРУСНОГО КРИЗИСА

The revitalization of international regional development banks’ activities is considered in the article as a necessary condition for solving problems that have arisen in various sectors of the economy in the context of the coronavirus crisis. The aim of the study is to analyze the activities of international regional development banks in the current situation and develop forecasts regarding the directions of their activities, as well as some recommendations. The methodological basis of the work was a systematic approach, the fundamental provisions of economic theory and the theory of international economic relations, methods of comparative analysis, and expert assessments. Statistical data of international economic and financial organizations, as well as publications of foreign and domestic authors were used as sources of information. The stages in providing financial resources for the fight against the coronavirus crisis are highlighted. The article considers and summarizes the approaches of several international development banks to participation in anti-crisis measures. So, first of all, these financial institutions carried out measures such as rapid response and cost support programs in the fight against the COVID-19 pandemic. Going forward, based on the initial anti-crisis measures, new assistance programs are needed to ensure economic growth and sustainable development. To expand their activities, international regional banks have increased the issue of their bonds. One of the areas of activity of international regional development banks is interaction with global financial institutions such as the IMF and the World Bank divisions. It also analyzed the areas of activity of the Eurasian Development Bank (EDB) in the fight against coronavirus, as well as difficulties and problems, including the need for additional capitalization. Thepractical significance of the study is expressed in the possibility of using the experience of such international regional development banks as the Inter-American Development Bank, the Asian Development Bank and others in the context of a pandemic to improve the activities of the EDB.

Debt Instruments of Transport Leasing Companies Funding

The objective of the study is to analyze the whole range of issues related to attracting corporate financing in the debt capital market, including a description of structural features of financing leasing companies, such as the currency of financing, the use of financial instruments with a fixed interest rate, the need for matching assets and liabilities of the company, in terms of urgency. The article discusses the debt strategies of Russian leasing companies specializing in vehicles leasing. The organization of attracting funding by transport leasing companies is important for development of the entire transport industry in Russia. Bilateral bank loans, instruments of international development banks, syndicated loans and ruble bond issues are analyzed together with structural elements, investment and transactional features. Each financial instrument is followed by an example of implementation of a transaction. A comparison of the main financial instruments is followed by identification of the main advantages and disadvantages of their use for corporate financing. The methods used in the article are based on a structural approach to financing, which in turn is based on the correspondence of the financial instruments used and the goals for using cash (including replenishment of working capital, refinancing, capital costs). The main conclusion of the article is that for leasing companies the optimal financial solution is to create a capital structure by combining loans and bonds.