JICA-RI Representative Gives Presentation on "Financial Regulation in Low-Income Countries: Balancing Inclusive Development with Financial Stability" in Ghana

Hosono SRA, one of the presenters, spoke under the theme of “Development finance for structural transformation and inclusive growth: Asian experience,” where he first overviewed roles of development financial institutions in East Asia. He pointed out that the East Asia governments created financial institutions to provide long-term loan with low interest rates, helping their countries to promote economic development through industrialization and infrastructure building. They at the same time encouraged inclusive development by providing credit to agriculture and small and medium firms. Next he explained about industrialization in Asia using prominent cases that in Japan, Korea and Taiwan, development banks played an important role in industrialization. On the other hand, in ASEAN countries where industrialization coincided with the expansion of foreign direct investment and financial globalization, public financial institutions in general stimulated inclusive growth, supporting mainly small and medium industries and agriculture.

Furthermore, Professor Griffith-Jones together with researchers from Ghana, Nigeria, Kenya, and Ethiopia pointed out the need for further development of the financial system in Sub-Saharan Africa, stressing that the financial institutions in the region should take initiative in enhancing inclusive development. They also addressed that African governments can learn lessons from the experience of East Asia and India despite the different backgrounds.