Tag: Finance

 

Demonetization Ushers in New Era of Digital Finance in India

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It has been more than 100 days since the Modi government declared that the two largest denomination notes in India—the 500 and 1000 rupee notes—would no longer be accepted as legal tender. The announcement of “demonetization” had an immediate and sweeping effect on Indian households, which were no longer allowed to use the notes (outside of a few narrow exceptions) and were given less than eight weeks to deposit or exchange them.

New Leadership at the IFC Aims to Get Us from Billions to Trillions

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This week, CGD hosted a discussion with Philippe Le Houérou, the CEO of IFC, the private sector arm of the World Bank. He was enthusiastic about his institution’s role in leveraging private capital and getting from billions to trillions of dollars for development, but he also presented a nuanced and critical judgment about the limitations of the IFC model to date, pointing to a number of ways it needs to change.

Criminal Finances: Should the UK Be Imposing Public Registers of Beneficial Ownership on Its Ex-Colonies?

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A new Criminal Finances Bill is making its way through the UK House of Commons which aims to make it harder for criminals and kleptocrats to use the UK financial system to launder ill-gotten gains, while minimising the burden on legitimate businesses and individuals. The bill gives expanded powers to law enforcement agencies and makes banks and other businesses liable for prosecution if they fail to prevent facilitation of tax evasion. It also introduces ‘Unexplained Wealth Orders’ (UWOs). These would allow the authorities to demand explanations about any assets that appear suspicious. These measures should have both domestic and international benefits in tackling illicit financial flows.

Aid in Reverse: Facts or Fantasy?

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A comment piece published in the Guardian earlier this week argued that for every $1 of aid that developing countries receive, they lose $24 in net outflows. The 1 to 24 figure is shocking and morally compelling. But it isn’t true.

Commitment to Development Index 2016: How Development-Friendly Are Your Country’s Policies? – Podcast with Owen Barder

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Kudos to Finland in 2016 for ascending to the top spot in CGD’s annual Commitment to Development Index, our ranking of how a country’s policies help or hinder development. Other countries of note this year include France, New Zealand and Austria. We just published the latest rankings, and I discuss them, their implications, and the political landscape that could affect them in our latest CGD Podcast with Owen Barder, senior fellow and director of CGD Europe, which produces the Index.

Can Payment for Results Repair Political Accountability Relations?

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When people hear that a foreign aid program is paying for results, they can think about it in two very different ways. Some people think that paying for results is a way to control recipients, making them more strictly accountable to the people or organizations that are paying them. Others think that paying for results is a way to give recipients more autonomy and encourage them to be accountable to their beneficiaries (in the case of service providers) or their constituents (in the case of governments). It turns out that both perspectives are right—depending on just how the program that pays for results is designed.

Can a Swiss Bank Help Deliver the SDGs? – Podcast with CGD’s Theo Talbot and UBS

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“Private sector” appears 18 times in the outcome document from last year’s UN financing for development conference in Addis Ababa—exactly the same number of times as “international cooperation.” In part, this is driven by the financial shortfall traditional donors face in delivering this ambitious agenda, and partly it reflects the different skills our public and private sectors possess. Now, one year into the SDGs, where are those ideas that bring private sector ingenuity and capital into achieving the development goals? In this edition of the CGD Podcast, we'll introduce you to one of them.

Beyond Aid—and Microcredit: Three Recommendations to Promote Women’s Economic Empowerment

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Recently CGD hosted the Second Annual Birdsall House Conference on Women, which focused on beyond-aid approaches for women’s economic empowerment, with particular emphasis on private sector engagement. CGD experts have written about how international organizations and national agencies should examine and correct gender biases in the design and delivery of their strategies for financial inclusion. But while public sector interventions are crucial for promoting women’s economic empowerment, the panelists pointed out that the private sector is in many ways better equipped to provide opportunities for women to grow their businesses, investments, and incomes. Here’s our takeaway.

Blockchain Tech Adoption Makes Progress, But Is Still No Magic Bullet for Global Financial Inclusion

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Distributed ledger technology, like Bitcoin’s blockchain, has the potential to transform cross-border payments, boost financial inclusion, and lessen the unintended consequences of anti-money laundering enforcement. Ripple, a fintech company using distributed ledger technology, made headlines recently, as did the appearance of a new cryptocurrency, Zcash. If you’ve gotten swept up in the enthusiasm around emerging financial technologies (fintech), you may think that the creaking system of international transfers in fiat currencies, and the problems of global financial exclusion associated with it, will soon come to an end. However, as we’ve said before, these innovations may not have as much of an impact as you expect.

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