Increasing annual investments in small- and medium-sized enterprises (SMEs) in developing countries by US$1 trillion would yield disproportionate dividends in terms of progress towards the Sustainable Development Goals (SDGs), while also delivering healthy returns for investors. Yet, less than 1% of the tens of trillions of US dollars that global asset managers have under management is currently invested in developing country SMEs.

This paper documents CGAP’s work with 18 fintech pilots in Africa and South Asia. The goal of this paper is to explain innovations in a detailed way and generate insight on whether the services (i) work as stated, (ii) create value for underserved customers, and (iii) ease age-old pain points in delivering financial services to underserved customers.
The publication is available in English via the following link.

This publication was prepared under the Asia-Pacific SDG Partnership of the United Nations (ESCAP), the Asian Development Bank (ADB) and the United Nations Development Programme (UNDP).

EBRD published a new episode of its Pocket Dilemmas podcast on “Age against the machine and the future of work”. Podcast guests: Jason Furman from Harvard Kennedy School and EBRD Chief Economist Sergei Guriev.

The podcast can be accessed in English via the following link.

Image: EBRD. Pocket Dilemmas

Google ‘value chain finance' and you will find a cornucopia of articles, case studies, and trainings. Much of the material is funded by and targeted to international development agencies with a supply-side perspective. The development-driven approach aims to set up and push goods through the value chain. The practice has merit and it contributes to economic development. Go read those materials for more of that perspective. This article focusses on value chain finance (VCF) from the financial institution (FI), demand-side, angle.

The published report assesses the progress in the Kyrgyz Republic towards a well-functioning, sustainable market economy, and the challenges ahead. It provides a basis for the design of the EBRD Country Strategy for the Kyrgyz Republic and for the structure and prioritisation of ongoing and future investment activities and policy advice/advocacy in the country.

The document is available for download in English via the following link.

Image: EBRD

Uzbekistan aims to achieve the status of an upper-middle-income country by 2030. Current reforms in the country largely target the development of small businesses and private entrepreneurship (small and medium-sized enterprises [SME]) as SMEs have the greatest potential for becoming a real basis for forming a middle class.

In this Pocket Economics podcast, Mattia Romani, EBRD’s Managing Director for Economics, Policy and Governance, and Bojan Markovic, Deputy Director for Economics and Policy, discuss economic resilience, the ability of markets and institutions to resist global shocks, mentioning that “…one key element that needs to be in place is a resilient banking sector”.
The podcast can be accessed in English here.

Illustration: from the EBRD website

The International Monetary Fund (IMF) published a report “Republic Uzbekistan: Fiscal Transparency Evaluation”. The evaluation highlights several gaps in Uzbekistan’s fiscal transparency practices and presents recommendations to improve it.
The full report can be downloaded in English via the following link.

The European Bank for Reconstruction and Development released a paper that assesses the progress in Kazakhstan towards a well-functioning, sustainable market economy, and the challenges ahead. It singles out five key constraints that are holding back private sector growth in Kazakhstan.

In 2016, Tajikistan launched the National Development Strategy of the Republic of Tajikistan for the Period Up To 2030 (NDS 2030) laying out its master plan of the country’s future economic development. This systematic country diagnostic identifies the most critical challenges and opportunities facing Tajikistan as its strives to raise the population’s living standards through the implementation of NDS 2030.

EBRD published a new episode of Pocket Dilemmas podcast on the future of money and the technology behind cryptocurrency.

The podcast can be accessed in English here.

Image: EBRD. Pocket Dilemmas