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EU Development Policy And The Promotion Of The Financial Sector

Author

Listed:
  • Bruno Bonizzi

    (SOAS, University of London)

  • Christina Laskaridis

    (SOAS, University of London)

  • Jan Toporowski

    (SOAS, University of London)

Abstract

This paper assesses the Aid policy of the European Union. It highlights how this EU Aid provision has been intertwined with the process of financialisation in two main ways. Firstly, a non-negligible proportion of Aid flows are linked to the promotion of private sector, for-profit activities, which very often include the development of the financial sector in developing countries. Secondly, the provision of Aid itself has become closely linked to the financial sector through the process of “blending”, which effectively increases the Aid budget by means of leveraging. These two aspects highlight how even cooperation policies with developing nations cannot be considered immune to the process of financialisation

Suggested Citation

  • Bruno Bonizzi & Christina Laskaridis & Jan Toporowski, 2015. "EU Development Policy And The Promotion Of The Financial Sector," Working papers wpaper120, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    • Handle: RePEc:fes:wpaper:wpaper120
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    References listed on IDEAS

    as
    1. M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 8-62, April.
    2. Dornbusch, Rudiger & Reynoso, Alejandro, 1989. "Financial Factors in Economic Development," American Economic Review, American Economic Association, vol. 79(2), pages 204-209, May.
    3. Jean Arcand & Enrico Berkes & Ugo Panizza, 2015. "Too much finance?," Journal of Economic Growth, Springer, vol. 20(2), pages 105-148, June.
    4. Demetriades, Panicos O. & Hussein, Khaled A., 1996. "Does financial development cause economic growth? Time-series evidence from 16 countries," Journal of Development Economics, Elsevier, vol. 51(2), pages 387-411, December.
    5. Bruno Bonizzi, 2013. "Financialization in Developing and Emerging Countries," International Journal of Political Economy, Taylor & Francis Journals, vol. 42(4), pages 83-107.
    6. Beck, Thorsten & Degryse, Hans & Kneer, Christiane, 2014. "Is more finance better? Disentangling intermediation and size effects of financial systems," Journal of Financial Stability, Elsevier, vol. 10(C), pages 50-64.
    7. Law, Siong Hook & Singh, Nirvikar, 2014. "Does too much finance harm economic growth?," Journal of Banking & Finance, Elsevier, vol. 41(C), pages 36-44.
    8. Council on Food Agricultural and Resource Economics, C-FARE, 2014. "2013 Annual Report," C-FARE Reports 260836, Council on Food, Agricultural, and Resource Economics (C-FARE).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Carolina Alves & Jan Toporowski, 2019. "Growth of international finance and emerging economies: Elements for an alternative approach," PSL Quarterly Review, Economia civile, vol. 72(288), pages 3-26.

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    More about this item

    Keywords

    EU; Aid; blending finance;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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