UID:
edocfu_9958096936002883
Format:
xvi, 201 pages :
,
illustrations ;
,
23 cm.
Edition:
1st ed.
ISBN:
0-8213-7706-X
Series Statement:
World Bank e-Library.
Content:
This book argues that poor countries need additional, cross-border capital channeled to the private sector for employment generation, growth, and poverty reduction. For that, innovative financing mechanisms are necessary. The volume brings together various market-based innovative methods of raising development finance including securitization of future flow receivables, diaspora bonds, and the role of shadow sovereign ratings in facilitating access to international capital markets.
Note:
Description based upon print version of record.
,
Cover -- Title Page -- Contents -- Foreword -- Acknowledgments -- About the Editors -- Abbreviations -- CHAPTER 1 Innovative Financing for Development: Overview -- Introduction -- Early Innovations -- Recent Innovations -- Future-Flow Securitization -- Diaspora Bonds -- GDP-Indexed Bonds -- Shadow Ratings and Market Access -- Financing for Development in Sub-Saharan Africa -- Innovations Classified by Intermediation Functions -- A Role for Public Policy -- The Future of Innovative Financing -- Notes -- References -- CHAPTER 2 Future-Flow Securitization for Development Finance -- Introduction -- Risk Mitigation in Future-Flow Securitization -- Rationale for Securitization -- Securitization Track Record -- Potential for Future-Flow Securitization -- Magnifying the Development Impact of Remittances -- Will remittances stay up in a crisis? -- Will the state take steps to divert remittances from private to state-owned banks? -- Will the central bank of the recipient country permit the payment of remittances into an offshore escrow account? -- How can a recipient bank show remittances as deposits for the benefit of local residents if they are paid into an offshore escrow account? -- Constraints on Securitization and the Role for Public Policy -- Annex: Additional Examples of Securitization -- Example 1: Banco de Credito del Peru's Securitization of Credit Card Receivables -- Example 2: Pemex Finance Limited Securitization of Crude Oil Receivables -- Notes -- References -- CHAPTER 3 Development Finance via Diaspora Bonds -- Introduction -- Israeli Experience -- Indian Experience -- Rationale for Diaspora Bonds -- Rationale for the Issuer -- Rationale for the Investors -- Conditions and Candidates for Successful Diaspora Bond Issuance -- Conclusion -- Notes -- References -- CHAPTER 4 GDP-Indexed Bonds: Making It Happen -- Introduction.
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The Benefits of GDP-Indexed Bonds -- Gains for Borrowing Countries -- Gains for Investors -- Broader Benefits to the Global Economy and Financial System -- Recent Argentine Experience with GDP-Indexed Bonds -- Concerns, Issues, and Obstacles -- Some General Issues and Concerns -- Investors' Concerns -- Accurate Reporting of GDP Growth Data -- Sufficient Liquidity and Scale -- Pricing -- Other Concerns -- Different Potential Investors -- Issuer Interest -- Additional Suggestions for Overcoming Obstacles -- Policy Implications and Next Steps -- Notes -- References -- CHAPTER 5 Shadow Sovereign Ratings for Unrated Developing Countries -- Introduction -- Some Stylized Facts about Sovereign Credit Ratings -- Prediction of Sovereign Credit Ratings -- Regression Model -- Specification 1: Dependent variable is the rating as of end-2006 -- explanatory variables for 2005 -- Specification 2: Dated model: dependent variable as of end-2006 -- but if the rating was established in year t, then use explanatory variables for year t-1 -- Model Validation Using Within-Sample Predictions -- Model Validation Using Cross-Comparison between Agency Ratings -- Modeling of New Ratings and the Very First Rating -- Specification 3: Dated pooled model to test whether a first-time rating by an agency systematically differs from its subsequent ratings -- Specification 4: Dated model to test whether a first-time rating by an agency is systematically affected by an existing rating from another agency -- Predictions for Unrated Developing Countries -- Summary of Results and Policy Implications -- Notes -- References -- CHAPTER 6 Beyond Aid: New Sources and Innovative Mechanisms for Financing Development in Sub-Saharan Africa -- Introduction -- Trends in Financial Flows to Sub-Saharan Africa -- Official aid continues to be the dominant source of external finance for Sub-Saharan Africa.
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FDI flows to Sub-Saharan Africa were comparable to other regions, but appear to be mostly in enclave sectors -- Private debt flows to Sub-Saharan Africa are small and short-term -- Portfolio equity flows were almost absent in Sub-Saharan Africa excluding South Africa -- Personal and institutional remittances are a growing source of external financing for Sub-Saharan Africa -- Capital outflows from Sub-Saharan Africa have decreased in recent years, but the stock of flight capital abroad remains high -- New Sources and Innovative Mechanisms for Financing Development in Sub-Saharan Africa -- New Sources of Financing -- Diaspora bonds -- Reduced remittance costs -- Innovative Structuring -- Guarantees -- IFFIm, AMC, and other innovative structuring by public-private partnerships -- Future-flow securitization -- Recovery of stolen assets -- Positive effects of sovereign ratings on market access -- Conclusion -- Notes -- References -- Index -- Back Cover.
,
English
Additional Edition:
ISBN 0-8213-7685-3
Language:
English
