The Contribution of Transparency to Development
Emphasizing the crucial role of transparency in development, this presentation explores how data, capital flows, and sustainable finance contribute to shaping a more inclusive and sustainable financial system. Highlighting the importance of accountability, the content delves into redirecting capital flows, cross-border investments, and fostering innovation to support long-term economic growth and resilience.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
The Contribution of Transparency to Development Executive IFRS Workshop for Regulators Centre for Financial Reporting Reform (CFRR) Andreas (Andy) Jobst Adviser to Managing Director and CFO, World Bank Group Vienna/Austria November 26, 2018 Disclaimer: The views expressed in this presentation are those of the presenter and do not necessarily represent those of the World Bank or World Bank policy. Any errors are those of the presenter. Jobst (2018) The Contribution of Transparency to Development 1
Greater transparency through data is critical Without data you re just another person with an opinion. W. Edwards Deming (1900-1993), Data Scientist Jobst (2018) The Contribution of Transparency to Development 2
Re-directing Capital Flows to Support Development and Sustainable Finance Stability in the face of sustainability risks, including climate change Alignment of financial and a broad range of developmental policies Generation and use of new information flows Characteristics of a Sustainable Financial System Public finance effectiveness VISION A financial system that integrates sustainability considerations, including costs and benefits of externalities to reorient the flow of resources towards more inclusive and sustainable activities focused on long-term fundamentals. Principles, cultures, and beliefs aligned to sustainability Long-term horizon Transparency and accountability to ensure markets integrity Innovation and dynamism Source: Maimbo and others (2017). Jobst (2018) The Contribution of Transparency to Development 3
Greater cross-border investment from AEs to EMDEs, supported by MDBs, is economically attractive and fiscally prudent in low-growth, low-rate environment. Channeling private investment from advanced economies (with excess private savings) to emerging market and developing economies (EMDEs) supplements limited (and deteriorating) domestic financial capacity Address global imbalance between savings and investments Develop more resilient local capital markets in receiving countries Use blended finance to enable larger private capital flows to EMDEs, notably for climate- smart infrastructure investment Short-term demand and long-term supply effect Boosts private investment, generates long-term income streams, and raises confidence Jobst (2018) The Contribution of Transparency to Development 4
The adoption of IFRS seems to reduce home bias of foreign investors Jobst (2018) The Contribution of Transparency to Development 5
and might moderate the volatility of portfolio flows. Jobst (2018) The Contribution of Transparency to Development 6
Green Infrastructure InvestmentCredit Risk Profile Accounting for the high degree of resilience would translate into a much lower capital charge, esp. for green investments Corporate (Ba2) EMDE infra EMDE infra green Conservative figures due to negative survivor bias (refinancing) and cumulative cohorts! Source: Jobst (2018), Levy (2017 and 2018), IAIS, and Moody's Investors Service. Note: "green" denotes project finance in industry sectors that meet the use-of-proceeds eligibility criteria of the Green Bond Principles; */ calibrated using a single factor model consistent with Vasi ek (with actual default and recovery rates); **/ currently in field-testing, to be adopted after the end of 2019. Jobst (2018) The Contribution of Transparency to Development 7
The Accounting for Sustainability Project (A4S) calls for better quality information on the impact of sustainability trends Source: The Prince s Accounting for Sustainability Project (A4S)/Aviva Investors (2018). Jobst (2018) The Contribution of Transparency to Development 8
Thank you! ajobst@worldbank.org Jobst (2018) The Contribution of Transparency to Development 9
