Global development financial institutions: the experience of project financing

About the authors:

Artem S. Barakhovsky, Cand. Sci. (Econ.), Leading Researcher, Institute for Research on Socio-Economic Transformations and Financial Policy, Financial University under the Government of the Russian Federation, Moscow, Russia; asbarakhovskij@fa.ru

Elena V. Mikhina, Cand. Sci. (Econ.), Associate Professor, Senior Researcher, Institute for Research on Socio-Economic Transformations and Financial Policy, Financial University under the Government of the Russian Federation, Moscow, Russia; evmikhina@fa.ru

Dmitriy A. Andreev, Junior Researcher, Institute for Research on Socio-Economic Transformations and Financial Policy, Financial University under the Government of the Russian Federation, Moscow, Russia; daandreev@fa.ru

Abstract:

There is a significant research interest in project financing as a tool for active development of investment activity in Russia. The novelty of such research lies in studying the role, practical significance, and potential opportunities of development financial institutions (DFIs) in project financing. Using the methods of analysis and synthesis, grouping and comparison, the authors have analyzed the global practice of DFIs, which identifies the main vectors for the institutions’ current activities, achievements, and problematic aspects in promoting project financing. The cases of DFIs in Canada, Germany, and Brazil show the specifics of DFIs’ activities in project financing to solve social and economic problems, to overcome global problems and challenges, and to achieve sustainable development goals. Majority of the research focuses on the organizational, functional, regulatory, and legal support for the activities of DFIs as a tool for implementing investment projects. The other countries’ experience serves as a possible model for application in Russia. The comparison of the main parameters of DFIs in different countries identifies the strengths and weaknesses in their functioning, which is important for the Russian researchers and investors.

References:

Sablin, K. S. (2012). The role of the institutional environment in the formation of development institutions. Zhurnal institutsionalnykh issledovaniy, 4(2), 28–45. [In Russian]

Smyshlyaev, V. A., Daineko, V. G., Yaresko, I. I., & Daineko, E. Yu. (2017). Development institutions and their influence on innovation activities of economic subjects in Russia. Modern Economics: Problems and Solutions, 6, 113–123. Retrieved Apr. 22, 2024, from https://doi.org/10.17308/meps.2017.6/1714 [In Russian]

Khoroshilov, E. E. (2020). Sustainable financing mechanisms: the Canadian experience. Ekonomicheskie sistemy, 13(4), 230–243. [In Russian]

Banco Nacional de Desenvolvimento Econômico e Social (BNDES). (2023, Dec. 31). Demonstrações Financeiras Consolidadas em IFRS. Retrieved Apr. 24, 2024, from https://api.mziq.com/mzfilemanager/v2/d/0a296115-dd7d-454b-ba26-369893ae3f0c/312c9801-a637-d914-63b1... [In Russian]

Innovation, Science and Economic Development Canada (ISEDC) (2023). (2010–2022). Business Development Bank of Canada Legislative Review Report. Retrieved Apr. 26, 2024, from https://ised-isde.canada.ca/site/bdc-review/en/2010-2022-business-development-bank-canada-legislativ...

Kreditanstalt für Wiederaufbau (KfW). (2022). Finanzbericht 2022. Retrieved Apr. 24, 2024, from https://www.kfw.de/PDF/Download-Center/Finanzpublikationen/PDF-Dokumente-Berichte-etc/3_Finanzberich...

Marois, T. (2024). Public development banks as essential infrastructure: Covid, the KfW, and public purpose. Review of Political Economy, 1–25. https://doi.org/10.1080/09538259.2023.2298739