Linking development finance to its economic backdrop: Can the production function be to development finance what a business plan is to entrepreneurship?

Jonathan Stilwell and Olive Munene ()
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Olive Munene: FirstRand Bank

Development Finance Agenda, 2024, vol. 9, issue 3, 8-10

Abstract: Investing scarce resources with the hope of a future outcome is fundamentally an economic process. Yet the use of formal economics tools to inform capital allocation decisions is still in its infancy. Development finance can play a pioneering role in enabling increasingly intelligent links between investment decisions and their economic backdrop. The economic Production Function provides a useful framework for incrementally formalising these links across projects, jurisdictions and institutions over time.

Date: 2024
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