This project is part of an edX course: Unlocking investment and finance in Emerging Markets and Developing economies. I opted to 'create' my own country St Paul and devise a finance Strategy for the next 5 years in order to meet our development goals as an employee of the ministry of finance. To do this the following must be highlighted: the estimated financing needs of my country, sources of finance available, how to access these sources and how to work with Multilateral Developments Banks to do so.

1. ‘Agriculture plays in vital role for economic growth and sustainable development. Investment in
this sector has been shown to be an effective instrument to alleviate poverty and enhance food
security.’
Food and Agriculture Organization of the United Nations, (Rome 2010). Agricultural Investment
funds for Developing Countries. Calvin Miller et al pg. 1
St Paul is a Small Island Developing State. Currently a new Government is assuming office from
July 2019. In an effort to show commitment to our development goals, the incoming government
has established a ‘Vision 2030 and Beyond Committee’ its members consisting of various cross
sections of society, including, Bankers, Farmers, Business owners (including Small to Medium
Enterprises), relevant ministries including the ministry of Agriculture, Finance, Foreign Affairs,
and Infrastructure. They are responsible for monitoring and review and reporting. The following
is data gathered from last year (2018) showing our highest and promising sources of finance, this
information is crucial as we move forward to set and execute our Development plan for the next
five years.
Sources of Finance as a percentage of the Gross Domestic Product (GDP)
International Public - Official Development Finance (ODA) 3.3 million USD
International Private - Remittances 62.5 % of GDP, Foreign Direct Investment (FDI) 49.1%
Domestic Public - Taxes 23.5% of GDP, Exports 15.5% of GDP
Domestic Private - Listed Domestic Companies 16.7%

2. In order to properly assess our sources of finance to meet our development needs, it is necessary
to do so in a rationale and pragmatic manner, the ‘Integrated Financing Framework’ Tool aids us
in doing so. This is key in order to identify gaps, risks, opportunities, constrains as well as key
stakeholders.
Assessment and Diagnotics: intended areas of focus include Agriculture and the Agri-business
sector particularly on our highest yielding and versatile produce Nutmeg, Cocoa, Cassava and
Mango. Other focus areas: Infrastructure, including focus on our Tourism Industry. These areas
are interconnected and imperative for alleviating poverty, job creation, boosting exports, and
increasing government revenue. However, based on preliminary research, it is estimated that to
finance our focus areas demands somewhere between 3.5 to 5.5 billion USD, over the next 5
years. This outweighs our current sources of finance. To address this gap, our aim is to shift our
focus to our International Private and Domestic Private sources of finance. This means attracting
Foreign Direct Investment crowding in and providing incentives for the Domestic Private Sector
as well the creation of Capital Markets. There is much value in attracting Institutional investors
such as Pension Funds as well as private investors who will be keen to set up Agriculture
Investment Fund and initiate Public-Private Partnerships, since they are geared towards long
term investments; also, these areas make business sense in terms of their risk to return ratio.
Additionally, environmental, social and governance impacts are crucial for this group. Attention
to Domestic Public sources of finance such as Tax Administration will also need to be
strengthened to meet our goals.
To attract such investments we must first identify risk factors involved so that they can be
mitigated: political instability, transparency, corruption, expropriation, currency convertibility
and independence of the judicial arm. With regard to the agricultural risks: climate change,
pests/other diseases. Here we rely on the expertise of the World Bank Group (WBG), for
instance to work alongside our investors to provide them with Risk Insurance Products such as
those provided by the Multilateral Investment Guarantee Agency (MIGA). We can address
issues such as Transparency, Corruption and integrity of public officers through policy reform
such as the establishment of an Integrity Commission for those holding public office. Our
capacity issues: Education of our local farmers and entrepreneurs, land availability, Tax
Reforms, Red Tape, tariffs, inclusivity and stability of the Commercial Financial sector.
To bring our development goals to fruition, we must work with key stakeholders; our
Commercial Banks, The World Bank Group, The Domestic private sector and Investors to
properly execute our Financial Strategy. It is this: through the provision of information to the
World Bank Group highlighting our opportunities and constraints in order to take advantage of
their technical expertise in areas such as equitable Tax Administration, and controlling illicit
flows through thorough training of employees in the Ministry of Finance and the Banking
industry respectively. This will be crucial in our Domestic Public sources of finance.
Additionally, the training of our local farmers and entrepreneurs will be essential. Gain access to
products offered by the WBG to act as a catalyst for private investments such as Blended
Finance. This also helps to crowd in the private sector and help build the base for Public-Private
Partnerships in agriculture. To focus on policy reforms such as those surrounding Political
stability, removal of barriers of trade e.g. Tariffs , red tape making getting businesses registered
and licensed within a reasonable timeframe so as to avoid business disruption, land reform for
instance being able to lease arable land for those who can’t afford to own plots, that would help
to encourage FDI and most importantly encourage private sector development especially as St
Paul looks to infrastructural developments and Tourism over the next 5 years and beyond, again

3. the WBG through its Country Private Sector Diagnostic under the International Financial
Corporation (IFC) will be a powerful tool in de-risking measures. Crowding in the Domestic
Private sector through will also mean having to work with our Commercial and Central Banks,
especially after de-risking measures, to discuss the lowering of interest rates to be more inclusive
to potential borrowers and regulation of this sector through mandatory audits. Encouraging
domestic private investors in diversify the financial system through the establishment of Credit
Unions, giving citizens and businesses other options to finance their needs. We again will
require the expertise of the WBG in forming a policy to have an overarching body monitor our
local financial institutions.
Over the next 5 years and beyond St Paul through assistance from key stakeholders mentioned
will close the gap in terms of financing for our Development.