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KINT 7680 - The Architecture of International Development Finance

Type d'enseignement : Seminar

Semester : Autumn 2018-2019

Number of hours : 24

Language of tuition : English

Voir les plans de cours et bibliographies

Pre-requisite

Interest in geopolitics and economic development. Basic economics and/or prior development work a plus

Course Description

Economic development requires investment in physical and human capital. A complex financial architecture has developed over the past seven decades, designed to channel financial resources to developing countries to finance their development. These include the Bretton Woods institutions (IMF and World Bank Group); regional and national development banks and climate funds; bilateral development partners; government-to-government lending; and philanthropic institutions. Taxes, remittances, and investment and lending from private actors play significant roles also in financing development. The course will provide students with: first, a good working knowledge of these different players, their governance, their financial instruments and their modus operandi, including how the different development institutions raise their capital and interact with the global financial sector (securities markets, commercial banks). Second, the course will cover mechanisms by which developing country governments develop their investment plans and access the different resources of financing available. Third, at the project-specific level using country examples and project case studies, the cycle in which investment projects and programmes in developing countries are identified, appraised, financed, and managed, will be addressed.

Teachers

BOND, James (Emerging Markets Financial Economist)

Pedagogical format

Short lectures to introduce key concepts; group assignments requiring students to research and present selected topics; and moderated class discussion of key topics and concepts. The focus will be on practical and hands-on learning.

Course validation

Students will be required to make team presentations (teams of three students each) to the class on selected topics. In addition, an individual short essay on a selected topic (from a short-list of topics provided) will contribute to the final grading.

Grading:
- Team presentation (30%)
- essay (50%)
- group participation (20%)

Workload

3 to 6 hours per course.

Required reading

Michael P Todaro and Stephen C. Smith: Economic Development, (The Pearson Series in Economics 12th Edition), 2014 Chapter 1: Introducing Economic Development: A Global Perspective

Additional required reading

  • Daron Acemoglu, James Robinson Why Nations Fail: The Origins of Power, Prosperity, and Poverty (Crown Business) 2013
  • Gregory Clark A Farewell to Alms: A Brief Economic History of the World (The Princeton Economic History of the Western World) 2007

Plans de cours et bibliographies

Part 1: Institutions and players

Session 1: Introduction to international development finance
Readings

Session 2: Key concepts in economics and finance for understanding development finance
Readings

  • Will be distributed before the course

Session 3: Public financing sources: Bretton Woods (World Bank, IMF), regional development banks, bilaterals, foundations and funds, government-to-government loans
Readings

Session 4: Private financing sources: financial markets, commercial banks and remittances
Readings

  • Mishkin: Financial Markets and Institutions - 8th edition (2015) Part I (Chapters 1 and 2)

Part 2: Country-level investment cycle

Session 5: Hard assets: investing in infrastructure and agriculture
Readings

Session 6: Human capital: investing in health and education
Readings

Session 7: Developing markets and creating jobs: private sector, financial sector, and trade
Readings

Part 3: Preparing and funding projects and programmes

Session 8: Case Study: infrastructure projects
Readings

  • Case Study will be made available online

Session 9: Case Study: human development projects
Readings

  • Case Study will be made available online

Session 10: Case Study: projects in partnership with private sector
Readings

  • Case Study will be made available online

Session 11: Case Study: investing in climate change projects
Readings

  • Case Study will be made available online

Session 12: Conclusion: The future of development finance

Short biography

James Bond is an independent financial advisor specializing in infrastructure, energy and climate change in emerging economies. Former Director at the World Bank and at IFC, and Chief Operating Officer at MIGA (a branch of the World Bank Group), he currently holds several positions in this field, including Senior Advisor to Centennial Group International (Washington DC); and Non-Executive Director with Adam Smith International (London), a firm investing in policy formation and advice in developing countries.
James’s most recent major assignment was as Senior Advisor to the Executive Director of the Green Climate Fund. Prior to this James was Senior Advisor to the African Development Bank (Abidjan, Côte d’Ivoire) for the launch of the Bank’s partial risk guarantee (PRG) program. James served in numerous managerial positions in the World Bank Group over 25 years, including based in the field in Madagascar and Côte d’Ivoire. Before joining the World Bank Group James spent nine years with Total, the French oil and gas company, and has also worked for Gold Fields, a South African mining company.