SlideShare a Scribd company logo
1 of 31
INTERNATIONAL FINANCIAL INSTITUTIONS &
FINANCE 4 DEVELOPMENT- MAD 09
Dr. Chales Tuay
University of Makeni
2022-2023 Academic Year
Email;charlesfelosl@gmail.c
om
AIMS & LEARNING OUTCOMES
1. To foster alternative approach to analyse economic policy;
circular economic Model
2. To equip students with the tools to tackle issues &
problems of economic policy
3. To appreciate economic welfare dimension of social,
political & environmental issues in the context of
sustainability.
4. To help students explore the dynamics of F4D in
developing countries looking at the opportunities &
challenges involves in financing development.
LEARNING OUTCOME
1. The course introduces students to main issues in SED
2. How to combine economic development & environmental
sustainability.
3. To know the relationship between growth, development &
supporting resource base
COURSE OUTLINE
1. DEVELOPMENT & SUSTAINABILITY; QUESTIONS &
ISSUES
 Definition & dimensions of sustainability
 Sustainability in economics
 The tragedy of commons
2 .INTERNATIONAL FINANCIAL INSTITUTIONS
 The role of financial institutions
 Gold standard system;
 Breton woody system; under flexible exchange rate & its
collapse
 Standard Drawing Right (SDR) ;Conditions for SDR to be the
world leading currency
3. INTERNATIONAL MONETARY SYSTEMS (IMS)
 IMF & World Bank ; IMF articles of agreement 1979
 Classification, establishment, Characteristics & conditionality’s World Bank
 WB experience & goal
 Development & the environment at W/ B
 Poverty trap, environment & growth
4. SUSTAINABLE DEVELOPMENT GOAL (SDG’S & WORLD BANK )
5.CORPORATE SOCIAL RESPONSIBILITY(CSR) & CORPORATE
SUSTAINABILITY
6. CIRCULAR ECONOMY
 Cradle to cradle economy
 Designing Circular economy
 Benefit of circular economy
7. SUSTAINABILITY MANAGEMENT SYSTEM AND SUSTAINABILITY
TOOLS
8. ECOSYSTEM SERVICES; Millennium Ecosystem Ass, pricing, challenges &
valuation
9.ECOLOGICAL FOOTPRINT, SOCIO-ECONOMIC IMPACT & IMPACT
MATRIX
10.FINANCING SUSTAINABLE DEVELOPMENT; UN CONFERENCES ON
FINANCING FOR DEVELOPMENT IN ETHIOPIA
11. AID DEPENDENCY & INTERNATIONAL TRADE THEORIES
12. FINANCING OPTIONS; RESOURCE MOBILISATION strategies in AFP
organisations
WHAT IS SUSTAINABILITY
SUSTAINABILITY
SOMETHING CAN LAST.
 could be anything ranging from natural resource to a business,
to a society, to an ecosystem.
 as society’s wishes may change thing may need to be
improving to meet new standards (Mearman & Plumridge,
2012).
 The most common definition of sustainability exists from 1987
DIMENSIONS
1. Economic
2. Social
3. Environmental
Economic sustainability
 Being designated as more important than environmental
sustainability.
SUSTAINABLE DEVELOPMENT(SD)
BRUNTLAND REPORT: 1987;
Development that meets the needs of the present without compromising
the ability of future generations to meet their own needs’ (1987, p.54).
 it emphasizes the need to take into account future generations rights
& needs, It make it clear that sustainability is more than just the
environment.
 Sustainability must coexist within politics & society to ensure that the
needs of the people of the future can be met.
 an Important topic to introduce to economics students
why? B/cos economists’ decisions centre around how resources are to
be shared, allocated, produced and consumed (Bradley, 2019).
These decisions impact both society & the environment at a
global scale
SUSTAINABILY & ECONOMICS(INTERLINK)
 Spash and Asara (2017) contend that for sustainability to be
integrated within economics, requires acknowledgement that
economics is inherently embedded & reliant on other ecological
systems
 Views on sustainability within economics vary from the
positions that focus on economic sustainability
 Sustaining of economic growth without harming other aspects
of the environment /planet,
ECONOMIC SUSTAINABILITY
 Requires technological advancement to maintain business as
usual
 Calls for economic growth to disentwined with increasing
consumption (i.e focus on maximizing ecological & human
wellbeing).
TRAGEDY OF THE COMMONS
THE INVISIBLE HAND,"
ADAM SMITH, coined the phrase "The Invisible Hand,"
GOAL;
 to discuss why the free market may fail & the consequences
when that happens.
 How market should function
1st to notice that a free market of individuals acting in their own
self-interest leads to a socially-desirable result.
 Why?
Demand = Marginal Benefit (MB)
Supply = Marginal Cost (MC)
In equilibrium, P = MB = MC
 At this point ,No further beneficial transactions are possible.
 A free market brings us to this point.
There are times when private (PMB/C) are not equal
to social Costs(SMB/C).
When this occurs, the market is unable to allocate resources
efficiency. We call this market failure.
TYPES OF MARKET FAILURES
1) Externalities
2) Imperfect Information
3) Public Goods
EXTERNALITIES
 an activity of one entity that affects the welfare of another .Not
reflected in market prices.
A key feature of this definition;
1) welfare of others is not reflected in market prices.
2) MSC = MPC+MEC(marginal private costs (MPC)+ marginal
external costs (damage done by the externality)
3) Prices will reflect private costs,
 Without policy, free market will not lead to an efficient solution.
 Individuals = MPC & MB.
 Since MSC > MPC, over provision results.
IMPERFECT INFORMATION
 market depends on perfect information to know available
options. lack of perfect information people may not make
optimal choices.
 different parties have different levels of information.
 Information is not the problem. It may be as a result of
uncertainty
UNCERTAINTY
 important consideration for environmental policy
 if all sides have same knowledge, even if uncertainty exists,
imperfect information is not a problem.
 How is (UNCERTAINTY )relevant to environmental economics?
 People may have imperfect information about health risks /the
dangers of pollution.
What can be done?
 Information can be provided by the government/private
individuals,
 government may provide services not provided by the market
because of imperfect information (e.g. insurance).
 market depends on perfect information to know available
options.
 Lack of perfect information people may not make optimal
choices.
 When different parties have different levels of information It may
be result is uncertain.
UNCERTAINTY
 important consideration for environmental policy/
 if all sides have the same knowledge, even if uncertainty exists,
imperfect information is not a problem.
 How is UNCERTAINTY relevant to environmental economics?
 People may have imperfect information about health risks / the
dangers of pollution.
What can be done?
Information can be provided by the government/private
individuals, government may provide services not provided by
the market because of imperfect information (e.g. insurance).
PUBLIC GOODS
2 key features:
1)Non-rival; one person enjoying the good does not keep others
from enjoying it
2)Non-excludable people cannot be kept from enjoying the good
Leads to free-rider problem
FREE-RIDER PROBLEM
Because the goods are non-rival, efficiency requires that
individual's MB= MC.
UNDERPROVISION ; Result when public goods are provided by a
free market.
it relevant to environmental economics?
open spaces
forest services
WHAT CAN BE DONE?
 The government can provide public goods & finance them with
taxes.
 This helps to alleviate the free-rider problem.
 it still may be difficult to get people to reveal their true
preferences for the good
OPEN ACCESS RESOURCES
 are resources/facilities open to individuals who wish to use the
resource. (uncontrolled access)
THE PROBLEM OAR
 Lack of property rights.
Let consider someone using a public grazing area. Individuals
equate MB = MC
 The benefits are the value of using the grass.
 The cost are of 2 types;
1. The cost of obtaining the resource
2. The opportunity cost of not being able to use the resource
later
 The user bears, The cost of obtaining the resource & part of
the opportunity cost, shared by all users.
When MPC < MSC Thus, MB = MPC < MSC; This leads to
over-utilization of the resource.
 FISHERIES provide a good example of OAR.
 Everyone shares the costs when fish are caught. This leads
to overfishing.
MANAGEMENT OPTIONS
o Annual quotas; These restrict the number of fish that can be
caught in a season
o Technology restrictions; Only certain technologies can be used to
catch fishthe commons problem.
o Individual Transferable Quotas (ITQ)
 Used in Australia, New Zealand, Canada, Iceland, and Alaska
 Shares can be traded
CHALLENGES
1. Hard to use in international waters
2. Allocating shares is difficult
3. Shares provide economic rent to those who receive them
TRAGEDY OF THE COMMONS
 an economic problem that occurs when individuals act
according to their own self-interest
 Exploit/overuse shared resource, which then depletes for
everyone else.
 lack of consideration of wider social-harm,
 Elevating individualistic rather than collective thinking,
CONSERVATIVE ECONOMISTS
 used ‘tragedy of the commons’ problem as an example to
argue for the privatization of common goods to manage
resource in question (HARDIN, 1968).
MODERN CONTEXT,
 The tragedy commons represent shared & self-renewing
resources such as fish stocks, air quality or the oceans
GARRETT HARDIN’S
TRAGEDY OF THE COMMONS
Garrett Hardin (1915–2003)
 well-known for his work on evolution & natural selection
 “The Tragedy of the Commons” (1968) has been incredibly
influential within economics, and it remains important despite
some historical and conceptual flaws.
 Focused; on the stress population growth placed on the
environmental resources.
 Unconstrained consumption of a shared resource by individuals
acting in rational pursuit of their self-interest can lead to, rapid
depreciation, depletion, & destruction of the resources.
 Our societies face similar problems, with environmental
resources, infrastructures, knowledge, & many other shared
resources.
 has been influential in biology, ecology, & various social
sciences, including economics.
 Was mention in the background of a discussion of
providing public
 has been transmuted, as if it was synonymous with free-
rider problems endemic to public or collective goods
ELINOR & VINCENT OSTROMIN 2009,
 Nobel Prize winner in Economics
“challenged the conventional wisdom by demonstrating how local
property can be successfully managed by local commons without
privatization.”
 Hardin's article, "The Tragedy of the Commons", relates the
open access resource problem to the environment.
QUESTIONS; How does Hardin relate the Tragedy of the
Commons to the environment?
 With pollution, people are putting something in to the commons,
rather than taking something out.
 Nonetheless, each individual’s share of the cost is small.
NB; the lack of property rights that causes the problem. For
example, there are no property rights for air.
HARDIN
 notes that private property encourages pollution. Says people
think it is their right to dirty air/water by their property.
 notes different ways to ration scarce goods
ALTERNATIVES FOR MANAGING COMMONS
 ex of managed commons; Swiss Alps pastures, Japanese
forests & Irrigation systems in Spain and Philippines
 Commons can be managed when harvesters & local leaders
self organize effective management rules
IMPORTANT VARIABLES IDENTIFIED FOR THIS TO OCCUR:
1. Size of resource system
2.Productivity of system
3.Non-linear effect:
4.Need to perceive need to be motivated
5.Predictability of system dynamics;
6.Resource unit mobility.
8.Norms/social capital; Users with shared values more likely to
trust that agreements will be kept
9. Knowledge of the SES; Costs of organizing lower if users share
common knowledge
10. Importance of resource to users; Higher value implies greater
expected benefit
11.Collective-choice rules; Do users have full autonomy at
collective choice level to craft and enforce rules? Leads to lower
transaction cos
WHAT IS NECESSARY TO KEEP COMMONS GOING
(OSTROM)
THEORETICAL F/W ; SOCIO-ECOLOGICAL SYSTEM
A SES consists of four core-level subsystems:
1.Resource systems (e.g. a park, forest, water resource)
2.Resource units (e.g trees and plants in the forest, quantity of
water flow)
3.Governance systems
4.Users
 Uses this FW to ask when a Tragedy of the Commons could be
averted.
HOW TO AVERT TRAGEDY OF THE COMMONS
can be averted if the expected benefits(EB) of management .>
Perceived Costs (PC)of developing better rules & norms for most
users & their leaders.
expected benefits(EB) .> the perceived costs (PC

More Related Content

Similar to MAD 09 Presentation 2022 MMMM.ppt DR CHARLES (1).ppt

Ecolodge publication part1
Ecolodge publication part1Ecolodge publication part1
Ecolodge publication part1ecokhoa
 
Ypld mauritius field hearings report
Ypld mauritius field hearings reportYpld mauritius field hearings report
Ypld mauritius field hearings reportNawsheen Hosenally
 
Environmental Economics - This is a multi disciplinary field
Environmental Economics - This is a multi disciplinary fieldEnvironmental Economics - This is a multi disciplinary field
Environmental Economics - This is a multi disciplinary fieldChrispin11
 
The Economic Development Of A Nation
The Economic Development Of A NationThe Economic Development Of A Nation
The Economic Development Of A NationKim Moore
 
Emerging issues.....
 Emerging issues..... Emerging issues.....
Emerging issues.....Hari Shrestha
 
Applied economics introduction to economics abm specialized subject
Applied economics introduction to economics   abm specialized subjectApplied economics introduction to economics   abm specialized subject
Applied economics introduction to economics abm specialized subjectGian Paulo Rabanal, LPT
 
12 domains of people powered change
12 domains of people powered change12 domains of people powered change
12 domains of people powered changeCormac Russell
 
Introduction of Microeconomics (2).pptx
Introduction of Microeconomics (2).pptxIntroduction of Microeconomics (2).pptx
Introduction of Microeconomics (2).pptx0129OsmanGoni
 
MIT's Big Oil Connection
MIT's Big Oil ConnectionMIT's Big Oil Connection
MIT's Big Oil ConnectionEd
 
Introduction to Macro Economics
Introduction to Macro EconomicsIntroduction to Macro Economics
Introduction to Macro Economicssuparswa
 
appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptx
appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptxappliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptx
appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptxCHUBBYTITAMAESTRA
 
Mitigation Of What And By What Presentationfinal
Mitigation Of What And By What PresentationfinalMitigation Of What And By What Presentationfinal
Mitigation Of What And By What PresentationfinalLn Perch
 
3. PPT Ethical Dimension of sustainable marketing.pdf
3. PPT Ethical Dimension of sustainable marketing.pdf3. PPT Ethical Dimension of sustainable marketing.pdf
3. PPT Ethical Dimension of sustainable marketing.pdfssuser8e72bb1
 
Topic 1 - Microeconomics - Course Outline & Introduction.ppt
Topic 1 - Microeconomics - Course Outline & Introduction.pptTopic 1 - Microeconomics - Course Outline & Introduction.ppt
Topic 1 - Microeconomics - Course Outline & Introduction.pptVineet918331
 

Similar to MAD 09 Presentation 2022 MMMM.ppt DR CHARLES (1).ppt (20)

Ecolodge publication part1
Ecolodge publication part1Ecolodge publication part1
Ecolodge publication part1
 
Rethinking Econ 101
Rethinking Econ 101Rethinking Econ 101
Rethinking Econ 101
 
Ypld mauritius field hearings report
Ypld mauritius field hearings reportYpld mauritius field hearings report
Ypld mauritius field hearings report
 
Environmental Economics - This is a multi disciplinary field
Environmental Economics - This is a multi disciplinary fieldEnvironmental Economics - This is a multi disciplinary field
Environmental Economics - This is a multi disciplinary field
 
The Economic Development Of A Nation
The Economic Development Of A NationThe Economic Development Of A Nation
The Economic Development Of A Nation
 
Emerging issues.....
 Emerging issues..... Emerging issues.....
Emerging issues.....
 
Sustainability Defined
Sustainability DefinedSustainability Defined
Sustainability Defined
 
Youth Forum_FinalReport
Youth Forum_FinalReportYouth Forum_FinalReport
Youth Forum_FinalReport
 
Applied economics introduction to economics abm specialized subject
Applied economics introduction to economics   abm specialized subjectApplied economics introduction to economics   abm specialized subject
Applied economics introduction to economics abm specialized subject
 
12 domains of people powered change
12 domains of people powered change12 domains of people powered change
12 domains of people powered change
 
Introduction of Microeconomics (2).pptx
Introduction of Microeconomics (2).pptxIntroduction of Microeconomics (2).pptx
Introduction of Microeconomics (2).pptx
 
MIT's Big Oil Connection
MIT's Big Oil ConnectionMIT's Big Oil Connection
MIT's Big Oil Connection
 
Introduction to Macro Economics
Introduction to Macro EconomicsIntroduction to Macro Economics
Introduction to Macro Economics
 
appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptx
appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptxappliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptx
appliedeconomicsintroductiontoeconomics-abmspecializedsubject-171203153213.pptx
 
Mitigation Of What And By What Presentationfinal
Mitigation Of What And By What PresentationfinalMitigation Of What And By What Presentationfinal
Mitigation Of What And By What Presentationfinal
 
3. PPT Ethical Dimension of sustainable marketing.pdf
3. PPT Ethical Dimension of sustainable marketing.pdf3. PPT Ethical Dimension of sustainable marketing.pdf
3. PPT Ethical Dimension of sustainable marketing.pdf
 
Topic 1 - Microeconomics - Course Outline & Introduction.ppt
Topic 1 - Microeconomics - Course Outline & Introduction.pptTopic 1 - Microeconomics - Course Outline & Introduction.ppt
Topic 1 - Microeconomics - Course Outline & Introduction.ppt
 
Chapter 1
Chapter 1Chapter 1
Chapter 1
 
Workshop: Sustainability Trends— How Will They Impact Your Organization?
Workshop: Sustainability Trends— How Will They Impact Your Organization?Workshop: Sustainability Trends— How Will They Impact Your Organization?
Workshop: Sustainability Trends— How Will They Impact Your Organization?
 
INTS 3300-Final Paper
INTS 3300-Final PaperINTS 3300-Final Paper
INTS 3300-Final Paper
 

Recently uploaded

Governor Olli Rehn: Dialling back monetary restraint
Governor Olli Rehn: Dialling back monetary restraintGovernor Olli Rehn: Dialling back monetary restraint
Governor Olli Rehn: Dialling back monetary restraintSuomen Pankki
 
Managing Finances in a Small Business (yes).pdf
Managing Finances  in a Small Business (yes).pdfManaging Finances  in a Small Business (yes).pdf
Managing Finances in a Small Business (yes).pdfmar yame
 
Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024Champak Jhagmag
 
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...Amil baba
 
(中央兰开夏大学毕业证学位证成绩单-案例)
(中央兰开夏大学毕业证学位证成绩单-案例)(中央兰开夏大学毕业证学位证成绩单-案例)
(中央兰开夏大学毕业证学位证成绩单-案例)twfkn8xj
 
The Core Functions of the Bangko Sentral ng Pilipinas
The Core Functions of the Bangko Sentral ng PilipinasThe Core Functions of the Bangko Sentral ng Pilipinas
The Core Functions of the Bangko Sentral ng PilipinasCherylouCamus
 
PMFBY , Pradhan Mantri Fasal bima yojna
PMFBY , Pradhan Mantri  Fasal bima yojnaPMFBY , Pradhan Mantri  Fasal bima yojna
PMFBY , Pradhan Mantri Fasal bima yojnaDharmendra Kumar
 
2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGeckoCoinGecko
 
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书rnrncn29
 
The AES Investment Code - the go-to counsel for the most well-informed, wise...
The AES Investment Code -  the go-to counsel for the most well-informed, wise...The AES Investment Code -  the go-to counsel for the most well-informed, wise...
The AES Investment Code - the go-to counsel for the most well-informed, wise...AES International
 
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...Amil baba
 
SBP-Market-Operations and market managment
SBP-Market-Operations and market managmentSBP-Market-Operations and market managment
SBP-Market-Operations and market managmentfactical
 
Role of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptxRole of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptxNarayaniTripathi2
 
The Triple Threat | Article on Global Resession | Harsh Kumar
The Triple Threat | Article on Global Resession | Harsh KumarThe Triple Threat | Article on Global Resession | Harsh Kumar
The Triple Threat | Article on Global Resession | Harsh KumarHarsh Kumar
 
Financial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxFinancial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxsimon978302
 
Kempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdfKempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdfHenry Tapper
 
Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Sonam Pathan
 
Stock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfStock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfMichael Silva
 
government_intervention_in_business_ownership[1].pdf
government_intervention_in_business_ownership[1].pdfgovernment_intervention_in_business_ownership[1].pdf
government_intervention_in_business_ownership[1].pdfshaunmashale756
 

Recently uploaded (20)

Governor Olli Rehn: Dialling back monetary restraint
Governor Olli Rehn: Dialling back monetary restraintGovernor Olli Rehn: Dialling back monetary restraint
Governor Olli Rehn: Dialling back monetary restraint
 
Managing Finances in a Small Business (yes).pdf
Managing Finances  in a Small Business (yes).pdfManaging Finances  in a Small Business (yes).pdf
Managing Finances in a Small Business (yes).pdf
 
Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024Unveiling Business Expansion Trends in 2024
Unveiling Business Expansion Trends in 2024
 
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
 
(中央兰开夏大学毕业证学位证成绩单-案例)
(中央兰开夏大学毕业证学位证成绩单-案例)(中央兰开夏大学毕业证学位证成绩单-案例)
(中央兰开夏大学毕业证学位证成绩单-案例)
 
The Core Functions of the Bangko Sentral ng Pilipinas
The Core Functions of the Bangko Sentral ng PilipinasThe Core Functions of the Bangko Sentral ng Pilipinas
The Core Functions of the Bangko Sentral ng Pilipinas
 
PMFBY , Pradhan Mantri Fasal bima yojna
PMFBY , Pradhan Mantri  Fasal bima yojnaPMFBY , Pradhan Mantri  Fasal bima yojna
PMFBY , Pradhan Mantri Fasal bima yojna
 
2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko
 
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
『澳洲文凭』买科廷大学毕业证书成绩单办理澳洲Curtin文凭学位证书
 
The AES Investment Code - the go-to counsel for the most well-informed, wise...
The AES Investment Code -  the go-to counsel for the most well-informed, wise...The AES Investment Code -  the go-to counsel for the most well-informed, wise...
The AES Investment Code - the go-to counsel for the most well-informed, wise...
 
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
NO1 Certified kala jadu karne wale ka contact number kala jadu karne wale bab...
 
SBP-Market-Operations and market managment
SBP-Market-Operations and market managmentSBP-Market-Operations and market managment
SBP-Market-Operations and market managment
 
Role of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptxRole of Information and technology in banking and finance .pptx
Role of Information and technology in banking and finance .pptx
 
The Triple Threat | Article on Global Resession | Harsh Kumar
The Triple Threat | Article on Global Resession | Harsh KumarThe Triple Threat | Article on Global Resession | Harsh Kumar
The Triple Threat | Article on Global Resession | Harsh Kumar
 
Financial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptxFinancial Preparation for Millennia.pptx
Financial Preparation for Millennia.pptx
 
Kempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdfKempen ' UK DB Endgame Paper Apr 24 final3.pdf
Kempen ' UK DB Endgame Paper Apr 24 final3.pdf
 
Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713Call Girls Near Me WhatsApp:+91-9833363713
Call Girls Near Me WhatsApp:+91-9833363713
 
Stock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdfStock Market Brief Deck FOR 4/17 video.pdf
Stock Market Brief Deck FOR 4/17 video.pdf
 
Q1 2024 Newsletter | Financial Synergies Wealth Advisors
Q1 2024 Newsletter | Financial Synergies Wealth AdvisorsQ1 2024 Newsletter | Financial Synergies Wealth Advisors
Q1 2024 Newsletter | Financial Synergies Wealth Advisors
 
government_intervention_in_business_ownership[1].pdf
government_intervention_in_business_ownership[1].pdfgovernment_intervention_in_business_ownership[1].pdf
government_intervention_in_business_ownership[1].pdf
 

MAD 09 Presentation 2022 MMMM.ppt DR CHARLES (1).ppt

  • 1. INTERNATIONAL FINANCIAL INSTITUTIONS & FINANCE 4 DEVELOPMENT- MAD 09 Dr. Chales Tuay University of Makeni 2022-2023 Academic Year Email;charlesfelosl@gmail.c om
  • 2. AIMS & LEARNING OUTCOMES 1. To foster alternative approach to analyse economic policy; circular economic Model 2. To equip students with the tools to tackle issues & problems of economic policy 3. To appreciate economic welfare dimension of social, political & environmental issues in the context of sustainability. 4. To help students explore the dynamics of F4D in developing countries looking at the opportunities & challenges involves in financing development.
  • 3. LEARNING OUTCOME 1. The course introduces students to main issues in SED 2. How to combine economic development & environmental sustainability. 3. To know the relationship between growth, development & supporting resource base
  • 4. COURSE OUTLINE 1. DEVELOPMENT & SUSTAINABILITY; QUESTIONS & ISSUES  Definition & dimensions of sustainability  Sustainability in economics  The tragedy of commons 2 .INTERNATIONAL FINANCIAL INSTITUTIONS  The role of financial institutions  Gold standard system;  Breton woody system; under flexible exchange rate & its collapse  Standard Drawing Right (SDR) ;Conditions for SDR to be the world leading currency
  • 5. 3. INTERNATIONAL MONETARY SYSTEMS (IMS)  IMF & World Bank ; IMF articles of agreement 1979  Classification, establishment, Characteristics & conditionality’s World Bank  WB experience & goal  Development & the environment at W/ B  Poverty trap, environment & growth 4. SUSTAINABLE DEVELOPMENT GOAL (SDG’S & WORLD BANK ) 5.CORPORATE SOCIAL RESPONSIBILITY(CSR) & CORPORATE SUSTAINABILITY
  • 6. 6. CIRCULAR ECONOMY  Cradle to cradle economy  Designing Circular economy  Benefit of circular economy 7. SUSTAINABILITY MANAGEMENT SYSTEM AND SUSTAINABILITY TOOLS 8. ECOSYSTEM SERVICES; Millennium Ecosystem Ass, pricing, challenges & valuation 9.ECOLOGICAL FOOTPRINT, SOCIO-ECONOMIC IMPACT & IMPACT MATRIX 10.FINANCING SUSTAINABLE DEVELOPMENT; UN CONFERENCES ON FINANCING FOR DEVELOPMENT IN ETHIOPIA 11. AID DEPENDENCY & INTERNATIONAL TRADE THEORIES 12. FINANCING OPTIONS; RESOURCE MOBILISATION strategies in AFP organisations
  • 7. WHAT IS SUSTAINABILITY SUSTAINABILITY SOMETHING CAN LAST.  could be anything ranging from natural resource to a business, to a society, to an ecosystem.  as society’s wishes may change thing may need to be improving to meet new standards (Mearman & Plumridge, 2012).  The most common definition of sustainability exists from 1987
  • 8. DIMENSIONS 1. Economic 2. Social 3. Environmental Economic sustainability  Being designated as more important than environmental sustainability.
  • 9. SUSTAINABLE DEVELOPMENT(SD) BRUNTLAND REPORT: 1987; Development that meets the needs of the present without compromising the ability of future generations to meet their own needs’ (1987, p.54).  it emphasizes the need to take into account future generations rights & needs, It make it clear that sustainability is more than just the environment.  Sustainability must coexist within politics & society to ensure that the needs of the people of the future can be met.  an Important topic to introduce to economics students why? B/cos economists’ decisions centre around how resources are to be shared, allocated, produced and consumed (Bradley, 2019).
  • 10. These decisions impact both society & the environment at a global scale
  • 11. SUSTAINABILY & ECONOMICS(INTERLINK)  Spash and Asara (2017) contend that for sustainability to be integrated within economics, requires acknowledgement that economics is inherently embedded & reliant on other ecological systems  Views on sustainability within economics vary from the positions that focus on economic sustainability  Sustaining of economic growth without harming other aspects of the environment /planet, ECONOMIC SUSTAINABILITY  Requires technological advancement to maintain business as usual  Calls for economic growth to disentwined with increasing consumption (i.e focus on maximizing ecological & human wellbeing).
  • 12. TRAGEDY OF THE COMMONS THE INVISIBLE HAND," ADAM SMITH, coined the phrase "The Invisible Hand," GOAL;  to discuss why the free market may fail & the consequences when that happens.  How market should function 1st to notice that a free market of individuals acting in their own self-interest leads to a socially-desirable result.  Why? Demand = Marginal Benefit (MB) Supply = Marginal Cost (MC)
  • 13. In equilibrium, P = MB = MC  At this point ,No further beneficial transactions are possible.  A free market brings us to this point. There are times when private (PMB/C) are not equal to social Costs(SMB/C). When this occurs, the market is unable to allocate resources efficiency. We call this market failure.
  • 14. TYPES OF MARKET FAILURES 1) Externalities 2) Imperfect Information 3) Public Goods EXTERNALITIES  an activity of one entity that affects the welfare of another .Not reflected in market prices. A key feature of this definition; 1) welfare of others is not reflected in market prices. 2) MSC = MPC+MEC(marginal private costs (MPC)+ marginal external costs (damage done by the externality) 3) Prices will reflect private costs,  Without policy, free market will not lead to an efficient solution.
  • 15.  Individuals = MPC & MB.  Since MSC > MPC, over provision results.
  • 16. IMPERFECT INFORMATION  market depends on perfect information to know available options. lack of perfect information people may not make optimal choices.  different parties have different levels of information.  Information is not the problem. It may be as a result of uncertainty UNCERTAINTY  important consideration for environmental policy  if all sides have same knowledge, even if uncertainty exists, imperfect information is not a problem.
  • 17.  How is (UNCERTAINTY )relevant to environmental economics?  People may have imperfect information about health risks /the dangers of pollution. What can be done?  Information can be provided by the government/private individuals,  government may provide services not provided by the market because of imperfect information (e.g. insurance).  market depends on perfect information to know available options.  Lack of perfect information people may not make optimal choices.
  • 18.  When different parties have different levels of information It may be result is uncertain. UNCERTAINTY  important consideration for environmental policy/  if all sides have the same knowledge, even if uncertainty exists, imperfect information is not a problem.  How is UNCERTAINTY relevant to environmental economics?  People may have imperfect information about health risks / the dangers of pollution. What can be done? Information can be provided by the government/private individuals, government may provide services not provided by the market because of imperfect information (e.g. insurance).
  • 19. PUBLIC GOODS 2 key features: 1)Non-rival; one person enjoying the good does not keep others from enjoying it 2)Non-excludable people cannot be kept from enjoying the good Leads to free-rider problem FREE-RIDER PROBLEM Because the goods are non-rival, efficiency requires that individual's MB= MC. UNDERPROVISION ; Result when public goods are provided by a free market. it relevant to environmental economics? open spaces forest services
  • 20. WHAT CAN BE DONE?  The government can provide public goods & finance them with taxes.  This helps to alleviate the free-rider problem.  it still may be difficult to get people to reveal their true preferences for the good
  • 21. OPEN ACCESS RESOURCES  are resources/facilities open to individuals who wish to use the resource. (uncontrolled access) THE PROBLEM OAR  Lack of property rights. Let consider someone using a public grazing area. Individuals equate MB = MC  The benefits are the value of using the grass.  The cost are of 2 types; 1. The cost of obtaining the resource 2. The opportunity cost of not being able to use the resource later  The user bears, The cost of obtaining the resource & part of the opportunity cost, shared by all users. When MPC < MSC Thus, MB = MPC < MSC; This leads to over-utilization of the resource.
  • 22.  FISHERIES provide a good example of OAR.  Everyone shares the costs when fish are caught. This leads to overfishing.
  • 23. MANAGEMENT OPTIONS o Annual quotas; These restrict the number of fish that can be caught in a season o Technology restrictions; Only certain technologies can be used to catch fishthe commons problem. o Individual Transferable Quotas (ITQ)  Used in Australia, New Zealand, Canada, Iceland, and Alaska  Shares can be traded CHALLENGES 1. Hard to use in international waters 2. Allocating shares is difficult 3. Shares provide economic rent to those who receive them
  • 24. TRAGEDY OF THE COMMONS  an economic problem that occurs when individuals act according to their own self-interest  Exploit/overuse shared resource, which then depletes for everyone else.  lack of consideration of wider social-harm,  Elevating individualistic rather than collective thinking, CONSERVATIVE ECONOMISTS  used ‘tragedy of the commons’ problem as an example to argue for the privatization of common goods to manage resource in question (HARDIN, 1968). MODERN CONTEXT,  The tragedy commons represent shared & self-renewing resources such as fish stocks, air quality or the oceans
  • 25. GARRETT HARDIN’S TRAGEDY OF THE COMMONS Garrett Hardin (1915–2003)  well-known for his work on evolution & natural selection  “The Tragedy of the Commons” (1968) has been incredibly influential within economics, and it remains important despite some historical and conceptual flaws.  Focused; on the stress population growth placed on the environmental resources.  Unconstrained consumption of a shared resource by individuals acting in rational pursuit of their self-interest can lead to, rapid depreciation, depletion, & destruction of the resources.
  • 26.  Our societies face similar problems, with environmental resources, infrastructures, knowledge, & many other shared resources.  has been influential in biology, ecology, & various social sciences, including economics.  Was mention in the background of a discussion of providing public  has been transmuted, as if it was synonymous with free- rider problems endemic to public or collective goods
  • 27. ELINOR & VINCENT OSTROMIN 2009,  Nobel Prize winner in Economics “challenged the conventional wisdom by demonstrating how local property can be successfully managed by local commons without privatization.”  Hardin's article, "The Tragedy of the Commons", relates the open access resource problem to the environment.
  • 28. QUESTIONS; How does Hardin relate the Tragedy of the Commons to the environment?  With pollution, people are putting something in to the commons, rather than taking something out.  Nonetheless, each individual’s share of the cost is small. NB; the lack of property rights that causes the problem. For example, there are no property rights for air. HARDIN  notes that private property encourages pollution. Says people think it is their right to dirty air/water by their property.  notes different ways to ration scarce goods
  • 29. ALTERNATIVES FOR MANAGING COMMONS  ex of managed commons; Swiss Alps pastures, Japanese forests & Irrigation systems in Spain and Philippines  Commons can be managed when harvesters & local leaders self organize effective management rules IMPORTANT VARIABLES IDENTIFIED FOR THIS TO OCCUR: 1. Size of resource system 2.Productivity of system 3.Non-linear effect: 4.Need to perceive need to be motivated 5.Predictability of system dynamics; 6.Resource unit mobility.
  • 30. 8.Norms/social capital; Users with shared values more likely to trust that agreements will be kept 9. Knowledge of the SES; Costs of organizing lower if users share common knowledge 10. Importance of resource to users; Higher value implies greater expected benefit 11.Collective-choice rules; Do users have full autonomy at collective choice level to craft and enforce rules? Leads to lower transaction cos
  • 31. WHAT IS NECESSARY TO KEEP COMMONS GOING (OSTROM) THEORETICAL F/W ; SOCIO-ECOLOGICAL SYSTEM A SES consists of four core-level subsystems: 1.Resource systems (e.g. a park, forest, water resource) 2.Resource units (e.g trees and plants in the forest, quantity of water flow) 3.Governance systems 4.Users  Uses this FW to ask when a Tragedy of the Commons could be averted. HOW TO AVERT TRAGEDY OF THE COMMONS can be averted if the expected benefits(EB) of management .> Perceived Costs (PC)of developing better rules & norms for most users & their leaders. expected benefits(EB) .> the perceived costs (PC