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Why Financial Institutions Evaluation Needed! Crisis of Finances in Afghanistan and its Impact on the SMEs and Economic Growth
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| Presenter(s):
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| Noorullah Noori, Afghan Growth Finance, noorullah.noori2007@gmail.com
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| Abstract:
Till recent days, evaluating financial institutions and development and use of financial institutions evaluations has not been widely discussed but they are extremely important for determining how best to implement robust SMEs financing programs. This paper describes and defines financial institutions evaluation and its importance. It describes financial institutions and commercial banks in Afghanistan avoid lending to SMEs - why viewing them as costly, high-risk credits and instead where prefer to invest. It describes decision makers, networks and decision outcomes. It then describes examples of several commercial banks/financial institutions using public capital illegally for generating more incomes in the country and outside the country. More specifically, it shows how using public capital illegally for generating more incomes by commercial banks/financial have impacted economic growth and SMEs in the country and resulted in diverting the prospects for sustainable development by ignoring the necessity of growth via a bottom-up capital formation.
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Inclusive Growth and Private Sector Development: Evidence from Evaluation
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| Presenter(s):
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| Izlem Yenice, World Bank, iyenice@ifc.org
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| Adesimi Freeman, World Bank, afreeman@ifc.org
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| Abstract:
There is growing consensus that the private sector is essential for growth and poverty reduction. Yet, the link from growth to poverty reduction is neither automatic nor universal. Growth is good for the poor but the impact of growth on poverty reduction depends on both the pace and the pattern of growth. This paper assesses the effects of interventions by the International Finance Corporation (IFC) on growth and distributional patterns of growth. Data for the assessment comes from a random sample of 158 projects evaluated by the Independent Evaluation Group. The evaluation shows that the type of growth that IFC supports matters for poverty reduction. An enhanced focus on growth and its distributional aspects need not come at the expense of financial profitability. Most IFC investment projects generate satisfactory returns but it has been challenging to incorporate distributional issues in its interventions.
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