Role of indigenous banking and finance establishments in the mobilization of financial resources for development : financing problems

Abstract

The problem of development financing and institutions in the field of development financing, particularly banks and other financial establishments, is currently one of the most debated topics on the international economic scene. Concerns have been expressed about the fact that for over twelve years now, the financial systems in the developing world and in Africa in particular, have been severely disrupted by domestic and external shocks of unprecedented scope. The combination of these events has weakened most financial systems from playing a more active catalytic role in the development process. The collapse of numerous banks in the continent and the rate at which they disappear in certain sub regions, particularly in the CFA franc zone, is testimony about the situation. Against this background, the secretariat of the United Nations Economic Commission for Africa deemed it appropriate in this study to discuss the question of whether the financial institutions, as they are at present, have paid sufficient attention to the real problems of development and to the necessity of redoubling efforts in order to play an increased role in the mobilization and allocation of adequate resources to the countries in which the financial institutions are located.