11 Questions
What is the estimated range for a good taxes/GDP ratio?
20-30%
Which source of development finance implies some control over assets beyond just investing money?
FDI
What does blended finance involve?
Co-investment where the government guarantees private investor's loss or interest rate
Which type of finance involves cross-border external financing?
Remittances
What is the state capacity of developing countries often stuck around in terms of taxes/GDP ratio?
Around 10%
What is the main purpose of blended finance according to the text?
To mobilize additional finance towards sustainable development in developing countries
Which of the following is a risk factor that prevents sustainable investment as mentioned in the text?
Seniority of loans
What is the significance of concessionality in blended concessional finance?
It adds value beyond what the market offers
How does private money allocation differ among different income countries according to the text?
It targets upper-middle-income countries mostly
What is a key factor driving blended finance according to the text?
Imperfect information and positive externalities
Why do multilateral development banks engage in blended finance?
To mobilize additional finance towards sustainable development
Explore the different sources of development finance including domestic and international sources. Learn about main public sources such as Official Development Assistance (ODA), taxes, and government debt. Discover how developing countries can improve their state capacity and attract private sources like Foreign Direct Investment (FDI).
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