Financial Markets at the Service of Development

 

Expectations and Proposals of Protestant Development Organizations
regarding Banks and Governments

 

Aprodev Annual Meeting, Kappel/Switzerland 31 May - 2 June 1999

Dr. Christoph Stückelberger, Bread for All, Switzerland

 

 

 

Content:

 

1. Current International Debates among Development Organizations

2. Expectations and Proposals regarding Banks

3. Expectations and Proposals regarding Governments

 

 

 


1. Financial Markets at the Service of Development:
Current/ upcoming Internat. Debates among Development Organizations

 

1.1 Financing development

·      Aid agencies: strengthening micro-credit systems through development projects

·      National governments: increasing or stopping the decrease of the development budgets

·      UN: supporting the UN-conference on financing development (2001?)

·      Investors/governments: „Second MAI“ as poverty-oriented Agreement on Investment

·      IMF/WB: institutional reforms (e.g.voting rights), adjusted international financial architecture

 

1.2 Debt

·      HIPIC: Cancellation of debts for poor countries/ counterpart funds for development

·      Odious debts: Cancellation of illegitimate debts for the benefit of development

·      Insolvency right: Establishment of a new international insolvency right

 

1.3 Capital control

·      Control of speculation: Tax for international speculative short term transactions (Tobin-/Spahn tax)

·      Tax evasion: closing tax heavens, harmonisation of taxes

·      Capital flight: International Mutual Legal Assistance in Criminal Matters

 

1.4 Ethical Investments

·      Ethical funds: to increase the investments in ethical funds; to influence their criteria, indicators and monitoring/ verification; to strengthen the development aspect in ethical funds

·      Responsible shareholders: to influence shareholders through ethical investments („l’actionnariat responsable“)

·      Corruption: to strengthen the manyfold instruments to fight corruption

·      Training: training in ethics for investors and their analysts and advisors

·      Theology: twofold de-mystification of money as the deliverer of good or the evil itself


2. Financial Markets at the Service of Development:
Expectations and Proposals regarding Banks

 

1.1 Financing development

·      Linkage banking: strengthening micro-credit systems through cooperation between banks and development organizations
(e.g. training of staff, risk management, bank controls)

·      UN-conference on financing development (2001?): dialogue on strategies between banks and aid agencies

·      Investors: Liberalisation of financial markets and investments only with poverty-oriented reglementations and technical assistance

·      IMF/WB: institutional reforms (e.g.voting rights), adjusted international financial architecture. Expectation that banks take into consideration the demands and needs of developing countries

 

1.2 Debt

·      HIPIC: Cancellation of debts for poor countries/ counterpart funds for development

·      Odious debts: that concerned banks are open for a dialogue on cancellation of illegitimate debts

·      Insolvency right: dialogue governments/banks/aid agencies on the establishment of a new international insolvency right

 

1.3 Capital control

·      Control of speculation: banks could/should develop technical proposals how to tax  international financial transactions

·      Tax evasion: that banks cooperate in fighting tax evasion

·      Capital flight: that banks cooperate as much as possible in international mutual legal assistance in criminal matters

 

1.4 Ethical Investments

·      Ethical funds: to increase the investments in ethical funds, to include development aspects, to strengthen their monitoring

·      Corruption: that banks refuse to finance bribes in international business transactions/investments (including the export risk guarantee) and refuse to accept money coming from corrupt practices.

·      Training: cooperation of banks, ethicists and development agencies in the training of ethics of investors and their analysts and advisors


3. Financial Markets at the Service of Development:
Expectations and Proposals regarding Governments

 

1.1 Financing development

·      National and continental (EU) development budgets: increase or no further decrease the development budgets

·      Banking and micro credit-systems: to support micro credit- and bank systems as important part of the financial sector

·      UN: creative proposals of governments to the the UN-conference on financing development (2001?)

·      Governments: Liberalisation of financial markets and investments only with poverty-oriented reglementations and technical assistance

·      IMF/WB: institutional reforms (e.g.voting rights), adjusted international financial architecture

 

1.2 Debt

·      HIPIC: Cancellation of debts for poor countries/ counterpart funds for development

·      Odious debts: that northern governments negotiate with banks and southern governments on the cancellation of illegitimate debts for the benefit of development

·      Insolvency right: dialogue governments/banks/aid agencies on the establishment of a new international insolvency right

 

1.3 Capital control

·      Control of speculation: governmental proposal (like Canada) to tax international speculative short term transactions

·      Tax evasion: to fight tax evasion by closing tax heavens, harmonisation of taxes, international legal ccoperation

·      Capital flight: to strengthen international mutual legal assistance in criminal matters

 

1.4 Ethical Investments

·      Ethical funds: to support ethical funds from governmental side, coherent labelling and independent  monitoring/ verification

·      Responsible shareholders: to influence shareholders through ethical investments of public pension funds

·      Corruption: to strengthen the manyfold instruments to fight corruption, especially legal and fiscal instruments

·      Training: to support the training in ethics for advisors, analysts and investors of governments and agencies.

cs\vorträge\aprode99.doc