1 / 11

Jan Van de Poel 11.11.11 Jan.VandePoel @11.be

Eurodad-Glopolis International Conference 2013 ‘ Can public support to the financial sector be an appropriate mechanism for development ?’. Jan Van de Poel 11.11.11 Jan.VandePoel @11.be. Agenda?. What is BIO? BIO and financial sector? Tax havens?. BIO-Invest ?.

carlo
Download Presentation

Jan Van de Poel 11.11.11 Jan.VandePoel @11.be

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Eurodad-Glopolis International Conference 2013‘Can public support to the financial sector beanappropriatemechanismfordevelopment?’ Jan Van de Poel 11.11.11 Jan.VandePoel@11.be

  2. Agenda? • What is BIO? • BIO and financial sector? • Tax havens?

  3. BIO-Invest? • Belgianbilateral DFI (member of EDFI) • Smallplayer in Europe (€ 400 mio net commitments in 2011), but big in Belgium (8% ODA in 2009, ‘explosive’ growth) • Ownership: 50% public + 50% private, but 100% public funding • Separate lawfromdevco+ specificcontractualarrangementswith state

  4. Public debate? • Report 11.11.11 4 challenges: • BIO as integral part of Belgiandevco • Financial vsdevelopment return • Efficiency and Transparancy • Ethicalplayer • Parliamentarydebate, ministerialstatements, official evaluation… • Expecting reform end 2013

  5. Throughwhatvehicles does BIO invest?

  6. Beneficiaries of BIO’sinvestments?

  7. BIO and the Financial Sector • Rationale: development (=integration in globalizedeconomy)  invest in companies, ‘roads’ and ‘banks’ • BIO has a mandate to invest 70% throughintermediariestargetingSME’s and FI’s (costeffectiveness, leverage, catalyzing effect)

  8. BIO and the Financial Sector: Issues • Financial Institutions: ‘access to finance’ forwhom? • Additionality (‘crowding out’ private sector) • Accountability(nostringsattached?) • Addedvaluefor ‘missing middle’? (factoring, leasing, …)  innovation! • Investmentfunds: roguedevelopment • Accountability (lack of oversight, little ‘leverage’) • Developmentoutcomes (M&E) • Transparencytax havens • Rationale: development (=integration in globalizedeconomy)  invest in companies, ‘roads’ and ‘banks’ • BIO has a mandate to invest 70% throughintermediariestargetingSME’s and FI’s (costeffectiveness, • 1. InvestmentFunds (40%, SMEs and MFIs) • 2. Financial Institutions (: • Commercial banks • Non-BankingFI’s (service providers: leasing, factoring, derivatives …) • MicroFinance (direct + throughspecializedfunds)

  9. BIO & Tax Havens • Inherent to business model (nearly all investmentsthroughIFs pass throughtax havens, notably Mauritius, CaimanIslands, Luxemburg • ‘Their’ argument: • Technical/legalarguments • Links developingcountries to financialmarkets • Increasingtransparancy • ‘Our’ argument: • PCD • Tax issues & developmentstrategy • BIO as standard setter (comparativeadvantages)

  10. Solutions: What 11.11.11 is advocating? • Innovativeapproachforlocalintermediaries: specific programmes managedbylocalbanks, micro-insurance, credit schemes without collateral, saving and credit cooperativesthatguaranteedevelopment impact • Focus on direct investments • Specialization and geographic and sectoralconcentration as strategyfor ‘risk mitigation’ (Harry Potter vsHaroldPinter) • Tax issues: moratorium for IF throughOFC’s, mandatory project by project reporting of profits made (& where) and taxespaid (& where) • Challenges: definition of tax haven, core of business model (goodpractices)

More Related