Developing the Financial Sector and Expanding Market Instruments to Support a Post-2015 Development Agenda in Asia and the Pacific | Asian Development Bank

Developing the Financial Sector and Expanding Market Instruments to Support a Post-2015 Development Agenda in Asia and the Pacific

Publication | March 2015
Developing the Financial Sector and Expanding Market Instruments to Support a Post-2015 Development Agenda in Asia and the Pacific

In light of financing challenges meeting post-2015 development agenda, this paper explores market instruments for expanding finance for capital expansion and financial inclusion, as well as for disaster risk mitigation and climate change.

With weak fiscal balances even in middle income Asian economies, it is necessary to promote efficient allocation of resources and enhance availability of financial instruments to catalyze commercial financing to meet development goals and complement fiscal resources.  New partnerships and innovative sources of financing can complement traditional financing modalities and governments can pursue these options by establishing an enabling environment through sound macroeconomic policies and fostering a dynamic private sector. Enabling financial frameworks contributes to private finance mobilization. The adoption of new financing modalities is critical for expanding investments in infrastructure and manufacturing to boost employment, growth, and productivity. To provide the necessary incentives for sustained private investment, macroeconomic, legal, environmental policy, and regulatory frameworks that reduce risks and uncertainty for investors is necessary.

Further, a key aspect of ensuring that the benefits of growth reach all sections of society is to foster an inclusive financial system, providing financial services to poorer and disadvantaged groups through instruments tailored to provide savings, insurance, remittances, credit, and other financial services to people and enterprises at the bottom of the economic ladder.

Contents 

  • Figure and Tables
  • Abstract
  • Acknowledgments
  • Introduction: Motivation and Aims
  • Financing Requirements and Challenges for The Post-2015 Development Agenda
  • Role of Financial Sector Development In Growth
  • Financial Sector Landscape of Asian Economies
  • Role of Small and Medium-Sized Enterprises and Infrastructure and Financial Inclusion In Employment Generation and Poverty Reduction
  • Availability and Usage of Long-Term Savings In Asia
  • Financial Sector Gaps for Expanding Capital Investment and Market Access
  • Financial Products and Institutions for Long-Term Capital Expansion
  • Leveraging Concessional Resources
  • Boosting Efforts for Financial Inclusion
  • Disaster Risk Financing
  • Conclusion
  • References