International Financial Institutions Research Articles

New Development Bank's role in the global financial architecture

AbstractThe New Development Bank (NDB) was established in 2015 by the grouping of Brazil, Russia, India, China, and South Africa (referred to as the BRICS). The establishment of the NDB was one of the outcomes of the economic and political dissatisfaction arising out of the growing disparity between the BRICS' development needs, their share of the world economy, and their representation in the established institutions of the global financial architecture. The paper examines the origins of NDB, the unique aspects of its governance structure, innovations in its operational model, and the challenges it currently faces. The paper concludes that 9 years after its establishment, NDB has completed the core foundational work required of a new multilateral development bank. It is undoubtedly an interesting experiment in the creation of a new international financial institution, and it has made a good and solid start. However, the current global environment is very different from the world of 9 years ago. If the NDB can navigate well the current challenges and if it can scale up significantly, then the NDB indeed has the potential to make a significant impact on the global architecture of development finance. Whether it does so, remains to be seen.

Structural adjustment, partisan alignment, and protest in the developing world

When do IMF programs induce protest? Despite much cross-country research on this question, there is little evidence on how IMF programs affect individual predispositions for protest and protest behavior. This article argues that governments facing IMF conditionality allocate adjustment burdens strategically, protecting their partisan supporters while punishing supporters of the political opposition. This intensification of distributional politics under IMF programs will increase protests by opposition supporters. To test this argument, we utilize a mixed-method strategy combining individual-level survey evidence from 12 sub-Saharan African countries and an intertemporal case study of Kenya. The results find strong evidence for our argument. Opposition supporters are significantly more likely to protest when a government goes under an IMF program, especially when the program entails public-sector conditions. Our analysis suggests that governments are not innocent bystanders in the adjustment process. Instead, they co-determine inclinations for protest by deciding over the allocation of adjustment burdens to the detriment of opposition groups and the benefit of their supporters. These results have important implications for the role of governments as purveyors of pressures for global policy reform induced by international financial institutions.

The Rise of Developing Economies

Abstract: This research delves into the transformative shifts in the global economic landscape, spotlighting the ascending influence of developing economies, notably China and India. Contrary to projections by international financial institutions, the study contends that India's pro-market reforms position it as a potential economic giant in the 21st century. Analyzing the economic transformations since China's 1978 reforms and India's 1991 reforms, the study emphasizes the significance of these economies' growth and diversification due to their demographic and economic resources. China's earlier reforms during the Cold War allowed advantageous dealings for domestic businesses, facilitated by a well-equipped administration. Both countries, however, exhibit growth reliant on unsustainable credit booms, rendering them financially vulnerable. As global market leaders, China and India's economic success reshaped global markets, trade patterns, and investment strategies. This chapter aims to furnish essential insights into the evolution of these economic giants, offering foundational knowledge for investment and business opportunities in India and China

ESG-Ratings: Nonparametric Methods of Construction

Many of the largest Russian companies are evaluated by international financial institutions or rating agencies in terms of their influence on ESG factors that take into account environmental issues, interaction with society and corporate governance. Such ratings can have various names, most often referred to as ESG ratings. The inherent subjectivity of the assessments, along with the lack of generally recognized standards and transparency of the methodology, cause concern both from the assessed companies and from investors and regulators. ESG ratings of Russian rating agencies are at an early stage of their development, which is reflected in a small number of evaluated companies. The purpose of the study is to study the main methodological problems in the compilation of ESG ratings identified by the academic and business community with a focus on studying the issue of choosing weights when constructing a summary indicator. The information base of the study is the data published by the rating agency RAEX, which is positioned as the largest agency in the field of non-credit ratings. A comparative analysis of the rating agency’s weight selection methods with nonparametric methods, such as methods of shell analysis, determination of preferences based on similarity with the ideal solution and calculation of the geometric mean is carried out. Based on the results of the study of the initial data of the rating agency, it can be concluded that most companies have low ratings for the environmental component and high ratings for the corporate governance component, while none of the companies has a benchmark rating. The main methodological problem in the selection of weights is the subjective nature of the weights used by the rating agency. Correlation analysis of the studied non-parametric methods showed a high correlation with each other and with the initial ratings of the rating agency, however, at the level of some individual companies, the ratings may differ depending on the chosen method.

Effects of Globalization on Third World Development: The Nigerian Experience

The study examines globalization and its effects on third world development with emphasis on the Nigerian state. The growing global economy was fastened mostly by information technology, international trade, culture, political, and social activities across the globe. It has no doubt created a global dual phenomenon where third world countries continued to experience economic and political development at the expense of western world. Thus, third world countries are fully incorporated into the global capitalist economy but the accrued benefits are not evenly distributed. Globalization is another form of colonization of third world countries achieved through the use of exploitative instruments like World Trade Organization (WTO), International Monetary Fund (IMF), World Bank, multinational corporations and other international financial institutions in order to capture the world in the name of globalization. These aforementioned instruments in the name of globalization are diversionary and plausible because there is no country in the world that is in the process of development as a result of globalization or that has developed as a product of globalization. The pro-globalizers deceive third world countries, that globalization is a path to development in which all third world countries are supposed to follow in order to become developed. Nigeria, in the current wind of globalization remains a clientele economy in the competitive global market. The study adopts documentary research methods and relied majorly on secondary data and modernisation theory was adopted as the theoretical foundation of the study. The study revealed that underdevelopment in Nigeria resulted from the negative effects of globalization are to explore the political impacts of globalization and imposition of foreign rule in Nigeria, to explore the economic impacts of globalization and unequal terms of trade in Nigeria and to identify the role of Nigeria as giant of Africa in global markets. The study, however suggest economic diversification and exportable capacity of the third world economy in the global market, regulation of international capitalist structure through applicability of market friendly policies devoid of stringent market policies placed on third world countries by the developed countries and Improving bank regulations of the third world countries nations banks are well regulated to their boost economic growth. The study concludes that there is interconnectedness between globalization and development in Nigeria, which in turn increases the rate of unemployment of masses and hinders political and economic development in Nigeria.

Continuing to Put People First: Embedding community investment in the sustainability standards of international financial institutions

AbstractWe discuss environmental, social and governance (ESG) considerations in international development projects, especially those funded by the World Bank and International Finance Corporation (IFC). Their social safeguard policies were adopted because of neglect of social impacts by projects. Although development assistance goals have shifted from economic growth towards poverty reduction and shared prosperity, mitigating adverse impacts of projects does not necessarily address the multiple dimensions of poverty or the Sustainable Development Goals. ‘Do no harm’ has limited ability to achieve social development objectives. Instead, a significant contribution to international development could come by embedding community investment in the environmental and social frameworks of international financial institutions, and social impact assessment and international development practise. This would ensure that projects contribute to improving the lives of project affected peoples. We propose changes to the IFC Performance Standards that could be implemented by other multilateral development banks and in the Equator Principles.

Social Impact Assessment of Urban Mass Transit: A Case Study of Metro Rail in India

The country's efforts to improve its infrastructure are important for promoting economic growth and alleviating poverty. However, these initiatives often result in negative consequences alongside their positive outcomes. These negative effects can manifest in various forms, including social, cultural, economic, and environmental impacts. As such, it is imperative to anticipate and prevent these undesirable outcomes to achieve inclusive and sustainable development. The importance of Social Impact Assessment (SIA) and meaningful public consultation in infrastructure projects has been recognized by social scientists, policymakers, international financial institutions, and development practitioners as effective measures to mitigate adverse social impacts of development projects. This is equally applicable to urban transportation projects, which also require a thorough evaluation of their social impacts. In this paper, we examine the SIA rules and regulations under the RFCTLARR Act 2013, assess the social impacts of the Ahmedabad metro rail project (Phase-I), and propose mitigation measures to minimize negative impacts and maximize positive ones for all stakeholders involved. It is argued that addressing social issues early in the project and integrating them into resettlement management can greatly increase the chances of project success.

Penta Helix Collaboration in Developing Social Inclusion for Persons with Disabilities

This research examines collaboration between the government, community, academia, entrepreneurs and the media, known as the ‘penta helix’, in developing social inclusion for persons with disabilities (PwD) in Indonesia. This descriptive and qualitative study collects data through observation, focus group discussions and in-depth interviews. The research informants were determined purposively from representatives of the penta helix who were seen as understanding or having the authority to interact with PwD. For data analysis, Miles and Huberman’s interactive analysis model was employed. Regarding the five areas of the penta helix, the study found that the government exercised political power through the issuance of Regional Regulation 9 of 2020 concerning the protection and fulfilment of the rights of PwD. The regulation aims to ensure that PwD receive the same rights and opportunities as other citizens. The community has a role as social power through creating care classes for PwD for people to understand the culture and self-development of PwD. Academics function as a knowledge power by developing campus inclusion standards and collaborating with national and international funding institutions to carry out the three pillars of higher education on the issue of PwD. Industry plays a role as social justice power in supporting the provision of venture capital assistance and work skills training for PwD. The media holds the power of brand image so that discriminatory views against PwD transform into fulfilling the rights of PwD. Understanding stakeholders’ role in the penta helix collaboration helps develop a social inclusion model for PwD.

Evolution of CBDC in the Context of the Institutional Theory of Money

There is currently a lot of discussion about the economic essence and differences between cryptocurrencies and other forms of digital money. An analysis of modern forms of money interpretations within national and international financial institutions also showed that approving an established typology is premature. The article proposes to look at the process of evolution of money from the point of view of the institutional theory of money. Accordingly, the variety of modern forms of money is due to varying degrees of control over the possibilities of issuing and establishing the rules for the functioning of money on the part of the payment community. Suppose the emergence of cryptocurrencies makes it possible to include a large part of the payment community in the decision-making process about the future of the payment system. In that case, central bank digital currencies (CBDCs) are, on the contrary, the highest form of alienation of the payment community, in which all questions of the existence of money are concentrated in the hands of the Central Bank. Even the existence of the banking system, traditionally involved in money circulation, becomes unnecessary. At the same time, the authors also examine the positive consequences of the gradual implementation of blockchain-based central bank digital currency in the Russian public procurement system.

Reforming international financial organizations in the context of the influsion to socio-economic development of Ukraine and Kazakhstan

Reforming international financial organizations in the context of the influsion to socio-economic development of Ukraine and Kazakhstan

ОСОБЛИВОСТІ ФУНКЦІОНУВАННЯ ВАЛЮТНОГО РИНКУ УКРАЇНИ В УМОВАХ ЕКОНОМІЧНОЇ НЕВИЗНАЧЕНОСТІ

In the era of globalization and the advancement of information technology, Ukraine’s foreign exchange market encounters economic uncertainty, particularly amid efforts to overcome the repercussions of the COVID-19 pandemic and the challenges posed by a full-scale armed invasion by Russia. This situation introduces a range of short-term and long-term obstacles, notably disrupting established trade routes and supply chains, impacting the balance of imports and exports, and placing significant strain on the foreign exchange market among other areas. This article aims to analyze the current peculiarities of the domestic foreign exchange market’s operation amidst economic uncertainty, focusing on the impact of governmental and regulatory actions on its dynamics, especially throughout 2022-2023. It delves into the regulatory measures enacted to stabilize the foreign exchange market under martial law conditions. The National Bank of Ukraine (NBU) has implemented several countermeasures in response to these challenges, including covering 37% of the currency supply, which resulted in a reduction in daily transactions and an enhanced role in market equilibrium. The measures also include restrictions on capital transactions and the facilitation of international assistance to satisfy foreign exchange demands. The future outlook of the foreign exchange market is contingent upon economic recuperation, foreign investments, macroeconomic policies, geopolitical risks, and regulatory frameworks. The significance of domestic reforms and international support is underscored as pivotal. It is also noted that global economic tendencies will influence Ukraine’s foreign exchange market in the aftermath of the conflict. This study is aimed at providing insights for professional analysts of the foreign exchange market, governmental bodies, and international financial institutions. Future investigations will explore the implications of the NBU’s policies on the foreign exchange market and their potential to foster economic recovery in Ukraine amidst prevailing challenges and threats.

The United Nations Sustainable Development Goals and global finance: Recent evidence

AbstractThis article provides a review of different global financial institutions and how they are making progress towards the United Nations Sustainable Development Goals (UN SDGs) through examination of their mission statements, stated purposes, financial products & services, and sustainable development projects. Through archival research, this study conducts an empirical investigation of how financial institutions are making progress on global environmental, social, and governance (ESG) issues. For each type of international financial institution, this study presents a prominent sample entity, evidence of value creation for the common good, and relationship to specific UN SDGs. This study provides evidence of different global institutions financing sustainability projects that create value for the common good with long‐term impact horizons. The evidence suggests that the combination of social factors and environmental factors outweigh the financial factors in the realized projects. This study proposes a novel approach towards comparing financial institutions in creating value for the common good based on the sustainable finance framework of Schoenmaker (2017, Investing for the common good: A sustainable finance framework. Bruegel).

Factors supporting sovereign wealth fund adoption

ABSTRACT The adoption of sovereign wealth funds (SWFs) has been rising globally. While their benefits are recognized, they are underutilized, particularly among commodity exporters. This research adds to the nascent literature on factors, focusing on external support, institutional readiness, and domestic capability, that influence SWF adoption. We highlight the importance of international financial institutions, policy frameworks, and technical capability in supporting countries’ adoption of SWFs.

Implementation of OSINT for Improving an International Finance Sector Organization’s Cybersecurity

This work-in-progress paper addresses the need to improve intelligence processes and enhance an organization's response to cyber threats while managing associated risks and improving Business Continuity Management (BCM). The paper focuses on the role of Open-Source Intelligence (OSINT) in Cyber Threat Intelligence (CTI) gathering and presents an operational process for its implementation. The process includes defining goals, selecting open sources, data collection, filtering, analysis, and reporting. Testing in an international financial sector organization yielded positive results, demonstrating the process's value in threat intelligence. Future research should clarify the role of artificial intelligence in OSINT

ASSESSING THE ROLE OF CLIMATE FINANCE IN SUPPORTING DEVELOPING NATIONS: A COMPREHENSIVE REVIEW

Climate finance plays a critical role in supporting developing nations to mitigate and adapt to the impacts of climate change. This comprehensive review examines the multifaceted role of climate finance in assisting developing countries in their efforts to address climate change challenges. The review begins by providing an overview of the global climate finance landscape, highlighting key sources of climate finance, including public funds, private investments, and innovative financing mechanisms. It then explores the allocation and distribution of climate finance, analyzing trends, disparities, and challenges in accessing and utilizing funds among developing nations. Furthermore, the review assesses the effectiveness of climate finance in supporting mitigation and adaptation activities in developing countries. It examines case studies and best practices to illustrate how climate finance has been utilized to finance renewable energy projects, enhance resilience in vulnerable communities, and promote sustainable development. Additionally, the review evaluates the governance and institutional frameworks governing climate finance, including the role of international financial institutions, national governments, and civil society organizations in mobilizing and disbursing funds. Moreover, the review examines the challenges and opportunities associated with scaling up climate finance to meet the growing needs of developing nations. It discusses issues such as financial transparency, accountability, and the alignment of climate finance with national development priorities. Additionally, the review explores innovative financing mechanisms, such as green bonds, climate insurance, and carbon pricing, as potential avenues for mobilizing additional resources for climate action in developing countries. In conclusion, this comprehensive review underscores the importance of climate finance in supporting developing nations to address climate change challenges and achieve sustainable development goals. It highlights the need for enhanced international cooperation, policy coherence, and investment mobilization to accelerate climate action and build resilience in the most vulnerable regions. By leveraging climate finance effectively and efficiently, developing countries can transition to low-carbon, climate-resilient economies while advancing their development objectives.
 Keywords:  Assess, Climate, Finance, Developing Nations, Support.

A Sectoral Analysis of BSE-Listed Indian Pharma Companies

Purpose: Investors, including domestic and international firms, venture capitalists, and financial institutions, rely on research to evaluate investment opportunities in the Indian pharmaceutical sector. Research helps assess factors such as market potential, company performance, R&D capabilities, regulatory environment, and risk-return profiles. Research plays a crucial role in guiding research and development (R&D) investments and priorities within the Indian pharmaceutical industry. By identifying unmet medical needs, emerging therapeutic areas, and technological advancements, research helps companies allocate resources effectively and focus on areas with the highest potential for impact and return on investment. The current research includes analysing financial statements, such as income statements and cash flow statements, to assess the profitability and earnings stability of pharmaceutical firms, and also investigate factors influencing EPS growth, such as revenue trends, cost structures, research and development (R&D) investments, regulatory environments, and market dynamics. Additionally, the study of DPS involves evaluating dividend payout ratios, dividend yield, dividend stability, and factors driving dividend decisions, including company profitability, cash flow generation, capital requirements, and shareholder preferences. Understanding the relationship between EPS and DPS in the Indian pharmaceutical sector provides valuable insights for investors, analysts, and policymakers in assessing the financial health, investment attractiveness, and shareholder value creation of pharmaceutical companies. Pharmaceutical companies listed on the Bombay Stock Exchange were selected for the study. Speculations were tested using ANOVA and T-TEST. The audit revealed that investors can invest in Dr. Reddys Laboratories, Abbott India, and Themis Medicare for their EPS to be maximum and Dr. Reddys Laboratories, Abbott India, and Novartis India for their DPS to be maximum. Methodology: Fifteen BSE-listed pharmaceutical companies are considered for the present research work and analysed by using EPS and DPS. Result: Selected Large, medium, and small Indian pharmaceutical companies listed on the BSE were the subjects of this study's analysis of their EPS and DPS. The websites of Money Control and the BSE provided the majority of the time series data used in the study on two different variables, EPS and DPS. Five years, from 2019 to 2020 to 2022–2023 are included in the analysis of the EPS and DPS. The BSE-listed Indian pharmaceutical businesses' EPS and DPS were examined in this study. Descriptive statistics (mean, standard error, standard deviation, skewness, and kurtosis) were computed for the determined EPS and DPS. An ANOVA test is run on the EPS and DPS data to find the differences between the chosen pharmaceutical businesses listed on the BSE. It is recommended that investors put their money into Abbott India, Themis Medicare, and Dr. Reddys Laboratories in order to maximise their EPS, and Novartis India, Abbott India, and Dr. Reddys Laboratories in order to maximise their DPS. Originality/Value: The BSE-listed Indian pharmaceutical businesses' EPS and DPS were examined in this study. Descriptive statistics (mean, standard error, standard deviation, skewness, and kurtosis) were computed for the determined EPS and DPS. Based on the study, the right companies for the investors are recommended. Paper Type: Exploratory research.

The Impact of High Government Debt on Economic Development in Somalia

This study focuses on the impact of high government debt on economic development in Somalia. The specific objectives of the study encompass: to examine the impact of high government debt on Somalia's economic development, to explore the strategies that can be used to mitigate the negative impact of high government debt on economic development in Somalia and to evaluate the role of international financial institutions in managing high government in Somalia. This study employed descriptive research design and quantitative research method to investigate the impact of heavily-indebted on rebuilding economic development in Somalia. The study employed purposive sampling technique to select the participants of the study. The sample size of the study was 80 participants. To collect data from the respondents which they entail: Government officials, Economic analysts, representatives from financial institutions, Business owners and entrepreneurs, representatives from Non-governmental organizations (NGOs) and Academics (researchers and scholars). The study adopted close-ended questionnaire instrument data collected from the respondents of the study was entered, coded, sorted, organized and analyzed using Statistical Package Software Science (SPSS) version 28. The key findings of the study on the impacts of high government debt on Somalia's economic development entail: limited access to credit, increased debt servicing costs, inflation and currency depreciation, reduced investor confidence, limited fiscal space, vulnerability to external shocks and social unrest. The strategies the can be used to mitigate the negative impact of high government debt on economic development in Somalia include: promotion of financial literacy, strengthening regulatory framework, encouragement of diversification of the economy, Improving infrastructure and access to financial services, implementation of debt management strategies, fostering a conducive business environment and seeking external assistance and debt relief. And the role of international financial institutions in managing high government debt in Somalia entail: providing financial assistance, negotiating debt relief, offering technical expertise and supporting capacity-building. The study recommended that the Federal Government of Somalia should improve fiscal management and should work with international financial institutions and creditor countries to negotiate debt relief and restructuring agreements to reduce the burden of debt payments and boost economic development.

The Dynamics of Public Financing in Heavy Engineering Projects: A Comprehensive Analysis of International Relations

The study examines public financing in heavy engineering projects, highlighting the importance of a multidisciplinary approach. Key factors include bilateral agreements, international financial institutions, and geopolitical tensions. Public financing is crucial for long-term, capital-intensive projects, and institutional capacity and governance effectiveness are essential for successful implementation. The research integrates economics, political economy, and institutional theory to provide practical insights for policymakers, project managers, and investors. Key factors influencing financing mechanisms include bilateral and multilateral agreements, international financial institutions, and geopolitical tensions. The study emphasizes transparency, accountability, and governance in infrastructure financing, as well as collaboration among countries, international organizations, and the private sector. This contributes to understanding global governance and cooperation in infrastructure investment, guiding optimization of financing strategies, and promoting sustainable development outcomes. Keywords: Engineering projects, International relations, multidisciplinary approach and public financing

Statistical Study of the Russian Financial System under Sanctions

Statistical Study of the Russian Financial System under Sanctions

International financial institutions and the development of Nigeria

The study investigated the existing relationship between International Financial Institutions concerning the World Bank, International Monetary Fund, African Development Bank, and the development of Nigeria. The historical design was used to organize and analyze secondary data derived from books, articles, official journals of international financial institutions, government/official documents and internet sources related to the problem of the study. The study adopted the Modernization theory of development as its theoretical framework in explaining Nigeria's development from the perspective of her affiliation with the international financial institutions (Bretton Woods Institutions and African Development Bank)'s loan policies and initiatives and their implications for Nigeria's development. The findings revealed that the policies and initiatives of the Bretton Woods Institutions and African Development Bank influenced the Nigeria development project, which has resulted in the constant granting of loans to Nigeria. Based on the findings, the study recommends that the Nigerian government should quickly look inward at other internally generated revenues from custom duties, sales of crude oil, sales of refined crude (Petro), maritime and other agricultural products' revenues and re-channel them towards Nigeria's development instead of wholly depending on loans and otherwise set up independent, as well as strong institutions to oversee and manage funds from foreign loans to avoid mismanagement and diversification that may lead Nigeria into more foreign debts thereby further retarding development in Nigeria.