This presentation discusses finance and fiscal policy for economic development. It covers the role of the financial system and central banks, informal and microfinance, fiscal policy including taxation, and state-owned enterprises and privatization. The presentation is divided into 5 sections: the role of the financial system, central banks and alternative arrangements, informal and microfinance, fiscal policy and its tools, and state-owned enterprises and privatization.

1. Presentation of Economic development
Chapter # (Finance and fiscal policy for
development)
By: Pardeep
Roll no: 2k11/PA/51
University of Sindh, Jamshoro

2. Chapter # (Finance and fiscal policy for development)
Outline:
 The Role of the Financial System in Economic Development
 The Role of Central Banks and Alternative Arrangements
 Informal Finance and the Rise of Microfinance
 Fiscal Policy for Development
 State-Owned Enterprises and Privatization

3. 01.The Role of the Financial System in Economic Development
• six major functions financial sector provides .
1. Providing payment services.
2. Matching savers and investors.
3. Generating and distributing information
4. Allocating credit efficiently
5. Pricing , and trading risks
6. Increasing asset liquidity

4. 02.The Role of Central Banks and Alternative Arrangements
Functions of a Full-Fledged Central Bank
Their major activities can be grouped into five general functions:

5. 03.Informal Finance and the Rise of Microfinance
• Traditional Informal Finance
• Microfinance Institutions

6. 04.Fiscal Policy for Development
01. Macro stability and Resource Mobilization
02. Taxation: Direct and Indirect

7. Comparative average level of revenue, 1985-1997, as a % of G.D.P
Country Groups 1985–1987 1995–1997
OECD countries 36.6 37.9
America 30.6 32.6
Pacific 30.7 31.6
Europe 38.2 39.4
Developing
countries
17.5 18.2
Africa 19.6 19.8
Asia 16.1 17.4
Middle East 16.5 18.1
Western
hemisphere
17.6 18

8. 04.Fiscal Policy for Development, continue:
03. Personal Income
04. Corporate Income Taxes
05. Indirect Taxes on Commodities

9. 05.State-Owned Enterprises and Privatization
• SOEs
• Privatization:

10. 05.State-Owned Enterprises and Privatization
• SOEs
• Privatization: