Economic Development Financiers understand the value of entrepreneurial capacity and power of innovation with need to support Business Creators to develop local economies and create innovative solutions to variety of problems around the world.
Most of these financiers have or are developing funding programs for Support Providers and Ecosystem Developers. When learning about the benefits of standardized ecosystem development framework, support practises, KPI's and need of Digital Transformation, we expect more and more of these organizations having key contributing roles also in establishing Ecosystem Operators in many countries.
Most of these financiers have or are developing funding programs for Support Providers and Ecosystem Developers. When learning about the benefits of standardized ecosystem development framework, support practises, KPI's and need of Digital Transformation, we expect more and more of these organizations having key contributing roles also in establishing Ecosystem Operators in many countries.
Development Banks
Development Banks are international financial institutions created by a group of countries, providing financing and professional advising for the purpose of economic development.
Development Banks (or multilateral development bank ie. MDB or also known as development finance institution ie. DFI) founders, owners and/or shareholders are generally group of national governments, although other international institutions and other organizations occasionally figure as shareholders. The world's largest international financial institution (IFI) is the European Investment Bank (about 1/4 of assets if compared to worlds largest commercial bank) and the best known international financial institution is World Bank, that was established after World War II to assist in the reconstruction of Europe and provide mechanisms for international cooperation in managing the global financial system. International Development Banks shareholders usually consist of the regional countries plus the major donor countries donor countries typically focus on supporting developing countries.
Development Banks (or multilateral development bank ie. MDB or also known as development finance institution ie. DFI) founders, owners and/or shareholders are generally group of national governments, although other international institutions and other organizations occasionally figure as shareholders. The world's largest international financial institution (IFI) is the European Investment Bank (about 1/4 of assets if compared to worlds largest commercial bank) and the best known international financial institution is World Bank, that was established after World War II to assist in the reconstruction of Europe and provide mechanisms for international cooperation in managing the global financial system. International Development Banks shareholders usually consist of the regional countries plus the major donor countries donor countries typically focus on supporting developing countries.
Development Banks finance projects in the form of grants, very-long-term loans (also known as credits) below market rates and long-term loans at market rates. They provide finance to the private and public sector for investments and grants that promote economic development and also to help private organizations to invest.
Regional And Bilateral BanksRegionally focused development banks consist several regional institutions that have functions with particular focus on a specific region. Some of the most prominent regional Development Banks include the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the Central American Bank for Economic Integration, the European Bank for Reconstruction and Development and the Islamic Development Bank. Other regional financial institutions are financial institutions of neighbouring countries, established internationally to pursue and finance activities in areas of mutual interest, like BSTDB - The Black Sea Trade and Development Bank. Most of them are central banks, followed by development and investment banks.
Bilateral development banks are financial institution set up by one individual country to finance development projects in another, developing country and its emerging market. Some examples include; the Netherlands Development Finance Company FMO, the DEG German Investment Corporation, the ADF French Development Agency and the CDC Group. |
Development Assistance or AIDIn addition to Development Banks, many governments also provide more direct official development assistance (ODA) or development aid (also known as development cooperation development assistance, technical assistance, international aid, overseas aid or foreign aid). This is financial aid given by governments and other agencies to support the economic, environmental, social, and political development of developing countries. It is distinguished from humanitarian aid by focusing on economic development in the long term, rather than a short term response.
Few great examples are Finland - Vietnam Innovation Partnership Program (IPP) and US AID project in Macedonia (together with Swisscontact foundation). You can find a comprehensive list of development aid agencies around the world in Wikipedia. |
Multilateral Financial InstitutionsSimilar to Development Banks, there are also many multilateral financial institutions (MFIs) like; European Commission, Nordic Investment Bank, International Investment Bank and Arab Bank for Economic Development in Africa. They are sometimes separated since they have more limited memberships and often focus on financing certain types of projects. And finally, there are also National Development Banks that are finance institutions, created by a country's government, that provide financing for the purposes of economic development within their own country.
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Foundations and CharitiesIn addition to these governmental development banks and funds, there are also non-governmental organisations (NGOs) ie. foundations like The Kauffman Foundation, Swisscontact Foundation or development charities like Oxfam, that fund projects focused on economic development via entrepreneurship and innovation.
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Source Wikipedia. Image on top: Global Air and Sea routes by Dominic Alves. Image below: modified from original by Sacha Chua
Startup Commons work with Development Financiers to design and implement funding programs and instruments that are well suited for innovation entrepreneurship ecosystem development. We also help in evaluating development projects for funding. Learn more.
