Role Of International Financial Institutions Research Articles

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.

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 role of International Financial Institutions in conflict, recovery, and transitions in Africa: a focus on Ethiopia and Sudan

Successive socio-economic shocks in the past three years have undermined Africa’s development gains, impeding the economic convergence of Africa and the developed world. While these shocks originated externally, internal factors within Africa are reinforcing their impact. One such factor is conflict and instability. Nearly half of the African states are either fragile or conflict-affected. Although international organizations claim to support Africa in overcoming fragility and conflict, how they engage Africa has remained a major policy and scholarly concern. International Financial Institutions (IFIs), for instance, are being asked to help address the economic dimensions of fragility and conflict. However, there is little consensus about whether they are indeed helping. Divergent responses are often offered wherein the IFIs argue that they are assisting by adopting adaptive strategies to correct past mistakes while experimenting with new strategies based on extensive monitoring and research. Scholarly debates on these IFI narratives, and by extension the IFIs’ interests and agenda, are not yet settled. This paper approaches these debates by examining IFIs’ engagement in the recent conflict and transitions of Ethiopia and Sudan, arguing that these examples call into question the IFIs’ claims of strategic adaptiveness. The paper, along with previous studies, argues that the inner core of neo-liberal economic vision has animated the IFIs’ prescription, often complemented by a focus on social safety nets to varying degrees and with varying effects. In Sudan, the IFI offered coordinated support for economic reform with some successes in directly targeting sources of fragility and conflict. In Ethiopia, such coordinated engagement was lacking, and reform measures did not directly target the sources of conflict. The cases demonstrate the importance of continuous and coordinated engagement in fragile and conflict-affected states (FCS) of Africa in a way that acknowledges the nexus between security and development issues, especially at critical junctures. The cases also underscore the importance of adaptive and pragmatic engagements with FCS undertaken in coordination with relevant global actors and institutions.

Функціонування державних банків в Україні в умовах воєнних ризиків

The banking sector plays a pivotal role in any country’s economic stability and growth, and Ukraine is no exception. In recent years, the banking sector in Ukraine has faced unprecedented challenges stemming from both internal and external factors, with military risks looming large on the horizon. This paper delves into the inherent nature of the development and operation of state banks in Ukraine, focusing on their resilience and adaptability in the face of such military risks. The paper explores the unique challenges that state banks encounter during times of military risks, including increased exposure to non-performing loans (NPLs). It assesses the implications of NPLs on the financial stability of state banks and the broader banking sector, highlighting the need for effective management strategies. Special focus is directed towards the examination of banking security metrics, which experienced substantial impacts due to military disruptions in 2014 and 2022, as well as the pandemic shock of 2020. Furthermore, this study analyzes the measures taken by state banks and the Ukrainian government to mitigate the impact of military risks on the banking sector. It discusses the role of international financial institutions and regulatory bodies in supporting state banks and fostering financial stability. Additionally, the paper explores the potential for innovation and technological advancement to enhance the resilience of state banks in Ukraine. It examines how digitalization and fintech solutions can contribute to more efficient operations and risk mitigation. In conclusion, this comprehensive analysis sheds light on the inherent nature of development and operation of state banks in Ukraine in the presence of military risks. It underscores the importance of robust risk management strategies, international cooperation, and technological innovation in ensuring the continued stability and functionality of state banks in these challenging circumstances. This research not only contributes to the academic understanding of state banks in wartime but also offers practical insights for policymakers and stakeholders in the Ukrainian banking sector.

Shaping Sovereignties: The Role of International Financial Institutions in Constitution-Making

How do international financial institutions such as the World Bank and the International Monetary Fund influence constitution-making processes? In this essay on Anna Saunders's “Constitution-Making as a Technique of International Law: Reconsidering the Post-war Inheritance,” I argue that the material dimensions of constitution-making are profoundly influenced by the discursive environment that institutions like the World Bank help create for political elites. I show how these institutions operate in opaque ways that are difficult to capture in the results of that constitutional process but serve to facilitate, expand, or contract the options available to constitution-makers to engage with material questions, especially those that involve historic injustice. My argument adds nuance to Saunders's claim that constitution-making traditions display a “relative separation from projects of global economic ordering.” Drawing on an example that Saunders uses, this essay engages with how an international financial institution—the World Bank—acted in a facilitative modality and influenced constitutional history and the current practices of land reform in South Africa since its negotiated transition in 1994. I then show how international financial institutions acted in a more prescriptive modality during the constitution-making processes in Hungary. I choose these countries as examples due to their canonical status for studying the influence of international assistance for constitution-making in the post-1991 moment. What these examples show is that while international financial institutions can guide “post-sovereign” constitution-making states toward better integration into the global economic framework, the sustainability of their constitutional arrangements often depends on broader domestic consensus.

THE ROLE OF INTERNATIONAL FINANCIAL ORGANIZATIONS IN STIMULATING THE ECONOMY

The role of international financial institutions is recognized in the modern world and even today the global world depends on the finances of financial organizations, because they play a major role in the accumulation, availability and distribution of finance, and some international financial organizations help publicly And has become an essential aid component at the modern stage, especially during the Kovid-19 pandemic and the Russia-Ukraine conflict. International financial organizations are often cited as the world's most powerful agents of economic reform (Halliday and Carruthers, 2007:1135-1202). The role of international financial organizations is also special for Georgia, it can be said for developing countries in general, of course developed countries are not excluded, but access to finance and technical assistance is often needed by poor, transition or developing economies. The role of international financial organizations increased especially after the Second World War, in fact, in 1944, and the Bretton Woods Conference is considered the birthplace of international financial organizations, as there were no such financial organizations before, however, the formation of such organizations Financial condition. We will not discuss the origins of organizations in this topic, but it should be noted that the International Monetary Fund and the World Bank, established under the Bretton Woods Conference, are still major players in the process of globalization and economic rapprochement with various international or regional financial organizations. At the same time, the International Monetary Fund is constantly introducing new standards in the face of modern challenges and adapting in the face of crises and challenges, assisting in implementation and conducting monetary policy, of course, taking into account the specifics of the country. It should also be noted that the opinion of scientists and experts often does not coincide with the policies of international financial organizations, even the International Monetary Fund in some cases, because local factors are ignored, which will be discussed in the main text, according to some examples. As for the World Bank Group, it mainly accredits countries with various types of loans and often plays an important role in stimulating the economy of a particular country - by financing infrastructure, energy and investment projects. It should be noted that intercity and urban infrastructure in Georgia is mainly financed by international financial organizations, including the construction of highways, municipal infrastructure, drainage systems, sidewalks and municipal transport development (For example, KFW-funded projects are important for the city of Batumi). The Asian Development Bank mainly finances the construction of the Central Highway, etc. Of course, such list is much broader and a matter of separate research, but we understand that it would be difficult for the state to finance such projects only with its own funds, and the already protracted projects would be further extended. Although international financial institutions play an important role in stimulating the economy, criticism often comes from the IMF's monopolistic and linear monetary policy, for example, the crisis of Asia in the 1990s and South Korea, when the IMF imposed its rule on South Korea. The policy developed by the experts, which should have been mainly focused on fighting inflation, which in fact deepened the crisis and led South Korea to default, which affected the entire financial market and particularly harmed private farms - small and medium-sized enterprises. The role of international financial organizations is special for Georgia as well, because the IMF and other international financial organizations play an important role in stimulating the Georgian economy, as most of the loans are directed to infrastructure and budget support loans. The volume of GDP and the level of employment of the population, however, the results of the funded projects will be more effective for the state and the population in the future. Debt management and services remain a challenge when financing international organizations, as the existence of public debt has historically been problematic, and the IMF has repeatedly called on states to maintain adequate levels of debt. However, it should be noted that the IMF at the present stage pursues a policy of relatively open governance and takes into account the characteristics of states in their monetary policy, because in the light of the crises of recent years, the Fund was not open to such governance. t should be said about the practice of Georgia, Georgia does not have a bad practice in terms of debt management, however, the debt volume as of 2021 is within 52% of GDP At the same time, it remains a challenge for Georgia to effectively implement projects financed by international financial organizations on time, because it is difficult to talk about the effectiveness of projects delayed over time. At the same time, it is important for Georgia to receive more loans from such organizations to finance more infrastructure and necessary economic projects.

A paz enquanto dependência: uma análise da dimensão econômica do processo de reconstrução pós-bélica no Timor-Leste

The post-war reconstruction process became the main reference for action in favor of peace in the world after the cold war period. In this sense, studying it corresponds to analyzing which vision of peace, applied in a practical way, is dominant in the world from this period onwards. Thus, the objective of this paper is to identify in the post-war reconstruction process of East Timor the economic dimension impacts of the peacebuilding instrument, from the analytical tools of the Marxist Dependency Theory. The hypothesis is that the role of International Financial Institutions in the economic dimension of East Timor peacebuilding was responsible for creating favorable structures to dependence and, consequently, an incompatible scenario with the new UN perception of peace.

Role of international financial institutions in optimizing global supply in Uzbekistan

the article deals with the creation of a trans-Afghan road and railroad Tashkent — Termez — Hairaton — Mazar-i-Sharif — Afghanistan. The assistance and financing of this section of the transport artery from international banks will have a great effect.

Priorities of public debt policy and security of the national economy

The article examines the content of public debt policy as an object of economic security in terms of methodological and practical aspects based on the assessment of debt sustainability using a system of indicators. The authors raise the issue of the need to develop a public debt management mechanism, to search for new strategies and tools, including by strengthening the functional role of international financial institutions.

The Role of International Financial Institutions in Protecting the Vulnerable During Pandemics: Focus on World Bank in Developing Economies

This article assesses the position of International Financial Institutions (IFIs) 1 such the World Bank in times of global crises. It finds out that during such times, international aid to thriving economies are not difficult to mobilise but without deliberate effort to trace the accountability of such funds. This article argued that law is central to advancing the plight of the vulnerable in society and the World Bank must direct aid to the legal structures and institutions in order to be positioned to assist the vulnerable to fight through the COVID-19 pandemic era. It recommends that the World Bank must follow up with enhancing and equipping legal structures of developing countries accessing any fund from it to ensure that such resources are channeled into the right economic sectors and that countries are deterred from laundering, misdirecting and misuse of funds.

International donors as enablers of institutional change in turbulent times?

PurposeThe purpose is to explore the role of international financial institutions (IFIs) during public financial management reform in a transitional economy. In particular, the study focuses on interaction between external enablers and local actors.Design/methodology/approachThe paper is based on a qualitative study of public financial management reform in Ukraine during 1991–2014. This period is divided into stages corresponding with two projects financed by the World Bank: “Treasury System” and “Public Finance Modernization.”FindingsFirst, IFIs supported a Ukrainian economy weakened by financial crisis and insisted on a comprehensive reform of public financial management to facilitate recovery. By strategically addressing local challenges, eliminating local uncertainties and maintaining stable interactions, IFIs gained support from the central government. Local actors continued the reform by negotiating with other actors and getting quorum support. In the second stage, IFIs could not implement planned changes. Even though the change was well-perceived at the beginning, developed tensions between local actors were overlooked by IFIs, which resulted in loss of commitment of the State Treasury representatives. The continuous political instability in Ukraine constrained interaction between IFIs and the Ministry of Finance and reduced political will for conducting reforms.Originality/valueThe study contributes to the debate on the adequacy of externally driven public management reforms in developing countries by exploring actions and interactions of global and local actors during the change in public sector practices.

International Cooperation on Climate Protection is Promoted by IFIs

The author explores various aspects of cooperation of International Financial Institutions (IFIs) between themselves (blending), as well as with state and commercial structures of different countries in the field of solving international problems related to climate change on the planet. The aim of the article is to describe the role of IFIs, forms of cooperation and the financial instruments used for funding activities for sustainable economic development and solving climate problems in the world and in individual states. The author applies general scientific cognition methods , such as analysis, synthesis and systemic approach. The study generalizes the experience of IFIs in addressing the issues based on international statistics in areas such as sustainable economic development and global climate change. The paper provides the statistical analysis of individual countries, in particular, in the Central Asian region. The author makes a conclusion about the importance of the dialectical interconnection between the methods of collective and individual learning in solving global problems, as well as the development of universal procedures, instruments and criteria for assessing the achievement of goals. The formulated proposals may be of further use to regulators, relevant ministries and departments, as well as companies in cooperation with IFIs in the implementation of infrastructure and climate protection projects.

Text-Mining Imf Country Reports – An Original Dataset

This article introduces an original panel dataset based on the text of country reports by the International Monetary Fund. It consists of a total of 5561 Article IV consultation and program review documents, published between 2004 and 2018 on 201 countries. The text of these reports provide indications of the perceived policy weaknesses, economic risks, ongoing reforms and implemented or neglected policy advice. Thus the content of IMF reports are widely used in the economics, political science and IR literature. To our knowledge this is the first comprehensive dataset that aggregates these country reports. The paper gives a detailed account on the data acquisition and management process. To demonstrate and validate the dataset's application for research we present three validation exercises. We find that Article IV reports can indicate incoming institutional reforms, show changes in IMF policy advice over time and identify potential gains from recently discovered natural resources in certain cases. Taken together, this paper contributes an original dataset of IMF country reports and demonstrates how it can be a useful foundation for further research into the role of international financial institutions.

The Role of the International Monetary Fund and the World Bank in Supporting Public Sector Reform in the Western

The International Monetary Fund, although the main focus has the financial and technical support in the monetary sectors and trade balance for member countries, it has long provided advice and technical assistance to promote good governance, such as promoting transparency of public sector and accountability. Also, the World Bank leverages lending instruments, helps and supports the member countries in need to carry out public reforms. Given the fact that the penitentiary Balkan countries started transition reforms from multiparty to multi-party systems in the 1990s, the role of international financial institutions was important in the field of structural reforms of these countries.The purpose of the paper is to examine and analyze the World Bank's lending and financial support instruments dedicated to public sector reform in Kosovo, Macedonia and Albania, in the period of membership in these institutions, using the analysis and comparative method until 2016. The research focuses on the lending and technical assistance provided by these institutions in the area of ​​financial management, revenue management, transparency, administrative and civil services and institutional capacity building. Keywords: International Monetary Fund, World Bank, lending, public sector, technical assistance DOI : 10.7176/JESD/10-4-13

Contracting arrangements and public private partnerships for sustainable development

This paper extends the discussion of the investment cycle in Ahmad (2017) (G24 paper), in which the questions concerning what to invest in and where are addressed. This paper examines the how of investment for sustainable development, focusing on options for contracting arrangements, such as PPPs, that would help to involve the private sector, manage risks in the presence of asymmetric information, as well as uncertainty about climate change. It also addresses the strengthening of national and local institutions and the possible role of international financial institutions. In discussing the investment options, the paper also updates a G24 review of the empirical and theoretical literature on involving the private sector involvement in public investments (Ahmad et al., 2018).

Economic Inequalities in Latin America at the Base of Adverse Health Indicators.

There is increasing evidence supporting the existence of a link between income inequalities and health outcomes. The main purpose of this article is to test whether economic inequalities are associated with poor population health in Latin American countries. Multi-country data from 1970 to 2012 were used to assess this question. The results show that the Gini coefficient has a strong correlation with health outcomes. Moreover, multiple linear regression analysis using fixed effects shows that after controlling for gross national income per capita, literacy rate, and health expenditure, the Gini coefficient is independently negatively associated with health outcomes. In Latin American countries, for every percentage point increase in the Gini coefficient, the infant mortality rate grows by 0.467 deaths per 1,000 live births, holding all other variables constant. Additionally, an ordinary least squares estimation model suggests that countries that do not use International Monetary Fund loans perform better on health outcomes. These findings should alert policymakers, elected officials, and the public of the need to fight income inequalities and rethink the role of international financial institutions that dictate state policies.

Neoliberalising Cambodia: The Production of Capacity in Southeast Asia

The current Cambodian experience of re-integration into the regional and global economies reveals a process of violent neoliberal accumulation. Under the guise of clean, frictionless neoclassical economics, neoliberalism has reformulated the role of state and society. This article examines how notions of ‘capacity’ or ‘capacity-building’ reflect a commitment to this understanding of economic systems. Market building and deepening, which involve the expansion and regulation of ‘capacities’, are intrinsically tied to this commitment. It is argued that technocratic, administrative, and pseudo-scientific discursive acts are central to the production and reproduction of neoliberal agendas. This is evidenced by the complicit role of international financial institutions, the Cambodian state, civil society groups, and governance structures more generally. Yet the ever-deepening roll-out of neoliberalism in Cambodia is far from complete. What is evident is that this unique proto-regulatory environment reveals the poverty that surrounds the call to increase or develop ‘capacity’. Importantly, the article concludes that the whole process of producing space and capacity is not a neat and linear set of affairs. The world of abstractions and dominant discursive acts cannot completely subsume the lived experience of the everyday.

International Financial Institutions (IFIs) and Sovereign Wealth Funds (SWFs) as instruments to combat corruption and enhance fiscal discipline in Developing States

Especially since the start of the second decade of the twenty-first century, once more we have seen more focused interest in the use of SWFs by home states—less as a means of projecting sovereign financial power outwards and more as a means of internal financial management, and development. What makes this interesting from the perspective of SWF development is the role of International Financial Institutions (IFIs) in SWF development. This article takes a first look at the way in which IFIs have also begun to use SWFs in their interactions, with a emphasis on developing states. A review of some recent efforts to establish SWFs with a stabilization or development focus suggests the way in which these funds now may better serve the project of fiscal and governance internationalization, and the development of global policy coherence around the fiscal ideologies of IFIs, rather than as an instrument of national policy. Part II briefly sketches the IFI's interest in and approach to SWFs as a part of their inve...

Development in a Multi-Polar World: The Post-2015 Agenda

This annual review highlights some of the new areas of concern for the development community and new areas of research. Part I discusses the global financial crisis, its causes, developing country responses and the implications for development going forward. Part II considers the growing literature on middle-income countries. Part III looks briefly at low-income countries, whether the recent increase in growth in Africa is sustainable, and the literature on post-conflict reconstruction. Part IV examines the proliferation of new models for the post Washington Consensus, post Beijing Consensus era. Part V presents some critiques of development models and the development field more generally. Part VI summarizes the ongoing efforts to come up with a Post-2015 development agenda. Part VII considers the changing role of international financial institutions.

International Financial Institutions (IFIs) and Sovereign Wealth Funds SWFs, Internal Improvement and the Socialization of Developing States

Especially since the start of the second decade of the twenty-first century, once more we have seen more focused interest in the use of SWFs by home states — less as a means of projecting sovereign financial power outwards and more as a means of internal financial management, and development. What makes this interesting from the perspective of SWF development is the role of international financial institutions (IFIs) in SWF development. This article takes a first look at the way in which IFIs have also begun to use SWFs in their interactions, with a emphasis on developing states. A review of some recent efforts to establish SWFs with a stabilization or development focus suggests the way in which these funds now may better serve the project of fiscal and governance internationalization, and the development of global policy coherence around the fiscal ideologies of IFIs, rather than as an instrument of national policy. Part II briefly sketches the IFI’s interest in and approach to SWFs as a part of their investment, capacity building and rule of law toolkits. Part III then reviews the manifestation of this approach in the development of SWFs in a number of developing states. The article suggests ways in which stabilization and development SWFs may better serve financial globalization than the particular interest of states establishing them precisely by transposing global standards of fiscal and governance behavior into the internal workings of states. In this sense, development and stabilization SWFs serve as an instrument of globalization from the top down (through IFI policy operationalization) perhaps as effectively as SWFs that seek to project national financial power through private market investments abroad. But it also creates the possibility of divergence in SWF character as the consequences of the use of SWFs as governance devices may produce substantial deviation from the traditional organizational parameters of SWFs as instruments of macroeconomic policy.