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A sustainable MDB strategy: The crucial importance of financial sector development

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  • Nick K. Kolev
  • Jonathan Stilwell

    (FirstRand Bank)

Abstract

It is often argued that MDBs should increase their utilisation of first-loss and guarantee products to de-risk development projects. However, a conceptual analysis of de-risking options available to MDBs suggest that concentrating on structural, rather than on project, risks may be a more sustainable long-term strategy. As such, we recommend that MDBs devote scarce financial and intellectual resources to Financial Sector Development (FSD) as well as to specific projects.

Suggested Citation

  • Nick K. Kolev & Jonathan Stilwell, 2023. "A sustainable MDB strategy: The crucial importance of financial sector development," Development Finance Agenda, Chartered Institute of Development Finance, vol. 8(5), pages 12-13.
  • Handle: RePEc:afj:journ4:v:8:y:2023:i:5:p:12-13
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    File URL: https://journals.co.za/doi/abs/10.10520/ejc-defa_v8_n5_a4
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