Commercial finance for development: a back door for financialisation

Ewa Karwowski

Review of African Political Economy, 2022, vol. 49, issue 171, 161-172

Abstract: The global Covid-19 pandemic has accelerated a trend under way for the last decade: the enlistment of private-sector commercial finance for development. This finance can be brought in through (1) regular cross-border flows, (2) blended finance and (3) impact bonds. This briefing argues that intensified foreign financial inflows are likely to draw African economies further into financialisation, which increases financial instability and can undermine the democratic process, jeopardising just socio-economic development. Specifically, the short-termism of portfolio flows requires costly reserve accumulation, foreign direct investment exposes firms to demands for shareholder value generation, and external debt introduces exchange rate risk for domestic borrowers.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/03056244.2021.1912722 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:revape:v:49:y:2022:i:171:p:161-172

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CREA20

DOI: 10.1080/03056244.2021.1912722

Access Statistics for this article

Review of African Political Economy is currently edited by Graham Harrison, Branwen Gruffydd Jones, Claire Mercer, Nicolas Pons-Vignon, Aurelia Segatti and Ray Bush

More articles in Review of African Political Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().