Authors
Ewa Karwowski
Publication date
2022/1/2
Journal
Review of African Political Economy
Volume
49
Issue
171
Pages
161-172
Publisher
Routledge
Description
The global Covid-19 pandemic has accelerated a trend under way for the last decade: the enlistment of private-sector commercial finance for development. This finance can be brought in through (1) regular cross-border flows, (2) blended finance and (3) impact bonds. This briefing argues that intensified foreign financial inflows are likely to draw African economies further into financialisation, which increases financial instability and can undermine the democratic process, jeopardising just socio-economic development. Specifically, the short-termism of portfolio flows requires costly reserve accumulation, foreign direct investment exposes firms to demands for shareholder value generation, and external debt introduces exchange rate risk for domestic borrowers.
Total citations
Scholar articles
E Karwowski - Review of African Political Economy, 2022