In 1998 the World Bank published a report entitled "Assessing Aid: What Works, What Doesn't and Why". This report presents the results of an extensive investigation into the effectiveness of development aid. The main message of the text of the report is that development aid helps, but only when there is a good policy environment in the recipient countries, that is when there is sound macroeconomic management and when robust government institutions exist. It stresses that it is a myth to think that good policies can be bought by giving development aid: giving aid conditional on policy reforms does not lead to improved economic policies. The conclusion of the World Bank report is that aid flows should be directed only to countries with sound policies and that it should be focused more on supporting governments in reforming entire sectors, rather than on specific development projects. The "Assessing Aid" report has led to heated debates, both among academics and policy-makers, about development aid and aid policies. Many have questioned the methodology used, the results and the policy conclusions of the report. This book aims to contribute to the ongoing discussion about the future of development aid. In particular, it re-examines a number of issues that are crucial to the analysis and to the conclusions of the World Bank report. In this study the authors aim to put the discussion on the future of development aid into perspective and summarise the main findings of the other studies in this collection. They focus on two issues: the aid effectiveness debate before and after the Assessing Aid report, and the discussion on policy conditionality and good governance. Section II provides a brief survey of past research on aid effectiveness, that is, before publication of the Assessing Aid report and summarises the main findings of the World Bank report on aid effectiveness. In this study the authors aim to put the discussion on the future of development aid into perspective and summarise the main findings of the other studies in this collection. They focus on two issues: the aid effectiveness debate before and after the Assessing Aid report, and the discussion on policy conditionality and good governance. Section II provides a brief survey of past research on aid effectiveness, that is, before publication of the Assessing Aid report and summarises the main findings of the World Bank report on aid effectiveness.

This collection brings together a collection of theoretical and empirical findings on aspects of financial development and economic growth in developing countries. The book is divided into two parts: the first identifies and analyses the major theoretical issues using examples from developing countries to illustrate how these work in practice; the second part looks at the implications for financial policy in developing countries.

For two decades thinking on economic policy has been dominated by the idea of economic liberalization in general and financial deregulation in particular. This field has become both extensive and controversial, yet there is no single book which treats financial deregulation in a complete and coherent manner.
This book rectifies the shortfall by focusing specifically on the consequences of interest rate deregulation for the real sectors of the economy. Using both analytical and simulation models the behaviour of consumers, firms, banks, informal credit markets and governments is examined with a view to providing guidance on a number of controversial issues.

Contemporary Issues in Development Finance provides comprehensive and up-to-date coverage of theoretical and policy issues in development finance from both the domestic and the external finance perspectives and emphasizes addressing the gaps in financial markets.

The chapters cover topical issues such as microfinance, private sector financing, aid, FDI, remittances, sovereign wealth, trade finance, and the sectoral financing of agricultural and infrastructural projects. Readers will acquire both breadth and depth of knowledge in critical and contemporary issues in development finance from a philosophical and yet pragmatic development impact approach. The text ensures this by carefully integrating the relevant theoretical underpinnings, empirical assessments, and practical policy issues into its analysis. The work is designed to be fully accessible to practitioners with only a limited theoretical economic background, allowing them to deeply engage with the book as useful reference material. Readers may find more advanced information and technical details provided in clear, concise boxes throughout the text. Finally, each chapter is fully supported by a set of review questions and by cases and examples from developing countries, particularly those in Africa.

This book is a valuable resource for both development finance researchers and students taking courses in development finance, development economics, international finance, financial development policy, and economic policy management. Practitioners will find the development impact, policy, and conceptual analysis dimensions insightful analysing and designing intervention strategies.

Table of Contents

1. Introduction to contemporary issues in development finance

Joshua Yindenaba Abor, Charles Komla Delali Adjasi, and Robert Lensink

2. Finance, economic growth, and development

Lordina Amoah, Charles Komla Delali Adjasi, Issouf Soumare, Kofi Achampong Osei, Joshua Yindenaba Abor, Ebenezer Bugri Anarfo, Charles Amo-Yartey, and IsaacOtchere

3. Microfinance and development

Niels Hermes and Robert Lensink

4. Private capital flows and economic growth

Elikplimi Komla Agbloyor, Alfred Yawson, and Pieter Opperman

5. Remittances and development

Hanna Fromell, Tobias Grohmann, and Robert Lensink

6. Foreign aid and economic development

Matthew Kofi Ocran, Bernardin Senadza, and EricOsei-Assibey

7. Global financial architecture: emerging issues and agenda for reforms

Joshua Yindenaba Abor, Angela Azumah Alu, David Mathuva, and Joe Nellis

8. Sovereign wealth management

Mbako Mbo and Charles Komla Delali Adjasi

9. Sovereign debt management

Amin Karimu, Vera Fiador, and Imhotep Paul Alagidede

10. Financial inclusion and economic growth

Joshua Yindenaba Abor, Haruna Issahaku, Mohammed Amidu, and Victor Murinde

11. Financing agriculture for inclusive development

Haruna Issahaku, Edward Asiedu, Paul Kwame Nkegbe, and Robert Osei

12. Financing sustainable development: new insights for the present and the future

Gordon Abekah-Nkrumah, PatrickO. Assuming, Patience Aseweh Abor, and Jabir Ibrahim Mohammed

13. International trade, finance, and development

Steven Brakman and Charles van Marrewijk

14. Infrastructure financing and economic development

Saint Kuttu, shenafi Fanta, ichael Graham, and Joshua Yindenaba Abor

15. Finance and economic development: the role of the private sector

Elikplimi Komla Agbloyor, Joshua Yindenaba Abor, Haruna Issahaku, and Charles Komla Delali Adjasi/

Contemporary Issues in Development Finance provides comprehensive and up-to-date coverage of theoretical and policy issues in development finance from both the domestic and the external finance perspectives and emphasizes addressing the gaps in financial markets. The chapters cover topical issues such as microfinance, private sector financing, aid, FDI, remittances, sovereign wealth, trade finance, and the sectoral financing of agricultural and infrastructural projects. Readers will acquire both breadth and depth of knowledge in critical and contemporary issues in development finance from a philosophical and yet pragmatic development impact approach. The text ensures this by carefully integrating the relevant theoretical underpinnings, empirical assessments, and practical policy issues into its analysis. The work is designed to be fully accessible to practitioners with only a limited theoretical economic background, allowing them to deeply engage with the book as useful reference material. Readers may find more advanced information and technical details provided in clear, concise boxes throughout the text. Finally, each chapter is fully supported by a set of review questions and by cases and examples from developing countries, particularly those in Africa. This book is a valuable resource for both development finance researchers and students taking courses in development finance, development economics, international finance, financial development policy, and economic policy management. Practitioners will find the development impact, policy, and conceptual analysis dimensions insightful analysing and designing intervention strategies.