Structured Funds: A balancing act between financial sustainability and development impact

It is estimated that up to 4.5 trillion US dollars in global investment are needed every year to achieve the Sustainable Development Goals (SDGs). Innovative financing approaches that aim to increase the involvement of private actors in development finance are therefore increasing in importance. One of these approaches is structured funds. They include different risk categories, in order to meet the needs of different investors. Official donors assume the highest risk category, thus reducing the risk for private investors. So far, only little is known about the development impact of this financing approach, which needs to balance its objectives of financial sustainability and development impact. Against this backdrop, this evaluation examines the alignment of this financing approach with the objectives of German development cooperation, its potential for mobilising private capital, its financial sustainability, and its effects on financial intermediaries (FIs) and the extent to which sub-borrowers are reached. For this purpose a theory-based approach was selected that integrates qualitative and quantitative methods of analysis. Based on its findings, the evaluation makes recommendations concerning financial sustainability, political management, donor coordination, mobilising private capital and managing development impact

Mobile Banking as Enabling and Constraining Financial Inclusion in Pakistan- A Theoretical Perspective

This paper provides a theoretical framework for exploring the role of new technologies for ‘banking’ the poor via mobile banking (m-banking) for financial inclusion in developing countries. It extends the literature beyond previous studies that examined m-banking through a technological or economic lens from the provider’s perspective, or from a collective national or regional level focussing on the individual user’s perspective. Thus the aim of the paper is to bridge the theoretical and methodological gap by justifying the application of Orlikowski’s Duality of Technology, as a socio-technical lens to evaluate how the social construction of m-banking enables and constrains poor women to access government-to person (G2P) payments, or digital social cash in Pakistan- a country that has been previously under researched. By shifting the level of analysis to the organisational level, the structuration framework helps us investigate the social and economic impact of m-banking in the restructuring of poor households for financial inclusion in Pakistan, and the effect of external and internal institutional forces in the redesign of emerging new technologies and financial practices. Furthermore, the paper debates why the socio-materiality of technology fails to provide a conceptual framework for this research. To conclude the paper highlights how the Duality of Technology contributes to new knowledge through a socio-technical perspective that underpins the philosophical orientation of the research to study the complex relationship between m-banking, households structures and social actors that provide an interpretive frame within the case study of the Benazir Income Support Programme in Pakistan

Bifurcated banking: the political economy of inclusive finance in Pakistan

How inclusive is inclusive finance? In this thesis, I examine a phenomenon which I describe as ‘bifurcated banking’. Exploring the case of Pakistan, I observe that policies of inclusive finance generate a heterogeneous financial space. The institutionalisation of inclusive finance leads to the emergence of a bifurcated banking system. Such a system is defined by mainstream commercial banks based on a traditional bank intermediation model on the one hand, and inclusive finance based on a disintermediated, or shadow banking model, on the other. My study of the Pakistani financial system shows that a bifurcated banking system is not transitory, but a structural feature of a developing capitalist country, where key relationships between inclusive finance and access to finance are best understood through what I call, shadow financial citizenship. My thesis is organised as two parts. In the first part, I develop a conceptual lens to analyse bifurcated banking. In the second part, I use Pakistan as a case study of inclusive finance to examine the core themes and concepts identified above

Theorizing technology affordances in digital innovation: evidence from an interactive voice response pilot project for low-income markets in Ghana

This thesis consists of three studies that examine the role and dynamics of technology affordances in digital innovation. Following the work of James J. Gibson (1977, 1986), technology affordances refer to all possible actions corresponding to the materiality of technological artifacts in relationship with humans and the environment (Hutchby 2001). The studies use empirical evidence from the same case study– a pilot project introducing interactive voice response (IVR) with savings clients of a savings and loans company in Ghana in 2017-2018. Each study is distinct in its focus and builds upon different aspects of the concept of affordances within the Information Systems (IS) literature. The first study focuses on the practice and processes of innovating done by innovation leaders (managers). The findings suggest that innovation occurs through patterns which involve innovation leaders’ conceptualizations of technology affordances and their applications. The second study focuses on how an affordance lens can be used to explain IT-associated change, specifically the phenomenon of strategic customer targeting. The findings suggest that the relationships among technologies, humans, and their environments are generating IT-associated changes within an organizational context by enabling strategic customer targeting through patterns of applied affordances in digital innovation. The third study focuses on the relationship between technology and anthropomorphic perceptions among technology users. The findings suggest that affordance-related patterns exist which individually and jointly enable the technology to exhibit human-like qualities within the user-technology interaction. All three studies develop arguments around the logics and consequences of technology affordances: how they are perceived and/or enacted within various technology development and diffusion 9 processes. From the analyses, the research explicates the relationship between digital materiality and digital innovation for an improved understanding of the role of the digital artifact in innovation

The Role Artificial Intelligence in Modern Banking: An Exploration of AI-Driven Approaches for Enhanced Fraud Prevention, Risk Management, and Regulatory Compliance

Banking fraud prevention and risk management are paramount in the modern financial landscape, and the integration of Artificial Intelligence (AI) offers a promising avenue for advancements in these areas. This research delves into the multifaceted applications of AI in detecting, preventing, and managing fraudulent activities within the banking sector. Traditional fraud detection systems, predominantly rule-based, often fall short in real-time detection capabilities. In contrast, AI can swiftly analyze extensive transactional data, pinpointing anomalies and potentially fraudulent activities as they transpire. One of the standout methodologies includes the use of deep learning, particularly neural networks, which, when trained on historical fraud data, can discern intricate patterns and predict fraudulent transactions with remarkable precision.  Furthermore, the enhancement of Know Your Customer (KYC) processes is achievable through Natural Language Processing (NLP), where AI scrutinizes textual data from various sources, ensuring customer authenticity. Graph analytics offers a unique perspective by visualizing transactional relationships, potentially highlighting suspicious activities such as rapid fund transfers indicative of money laundering. Predictive analytics, transcending traditional credit scoring methods, incorporates a diverse data set, offering a more comprehensive insight into a customer's creditworthiness.  The research also underscores the importance of user-friendly interfaces like AI-powered chatbots for immediate reporting of suspicious activities and the integration of advanced biometric verifications, including facial and voice recognition. Geospatial analysis and behavioral biometrics further bolster security by analyzing transaction locations and user interaction patterns, respectively.  A significant advantage of AI lies in its adaptability. Self-learning systems ensure that as fraudulent tactics evolve, the AI mechanisms remain updated, maintaining their efficacy. This adaptability extends to phishing detection, IoT integration, and cross-channel analysis, providing a comprehensive defense against multifaceted fraudulent attempts. Moreover, AI's capability to simulate economic scenarios aids in proactive risk management, while its ability to ensure regulatory compliance automates and streamlines a traditionally cumbersome process

China: New Engine of World Growth

Twenty-five years of reform have transformed China from a centrally planned and closed system to a predominantly market-driven and open economy. As a consequence, China is emerging as the new powerhouse for the world economy. China: new engine for world growth discusses the impact and significance of this transformation. It points out risks to the growth process and unfinished tasks of reform. It presents conclusions from recent research on growth, trade and investment, the financial sector, income and regional disparities, industrial location and private sector development. Ross Garnaut is a Professor of Economics in the Research School of Pacific and Asian Studies, and Chairman of the China Economy and Business Program at The Australian National University. He was Australia’s Ambassador to China in the 1980s. Ligang Song is a Fellow in the Asia Pacific School of Economics and Government, and Director of the China Economy and Business Program at The Australian National University

Economic Self-Help Group Programs for Improving Women’s Empowerment: A Systematic Review

Motivation: Self-help groups (SHGs) are implemented around the world to empower women, supported by many developing country governments and agencies. A relatively large number of studies purport to demonstrate the effectiveness of SHGs. This is the first systematic review of that evidence. Approach: We conducted a systematic review of the effectiveness of women’s economic SHG programs, incorporating evidence from quantitative and qualitative studies. We systematically searched for published and unpublished literature, and applied inclusion criteria based on the study protocol. We critically appraised all included studies and used a combination of statistical meta-analysis and meta-ethnography to synthesize the findings based on a theory of change. Findings from quantitative synthesis: Our review suggests that economic SHGs have positive effects on various dimensions of women’s empowerment, including economic, social, and political empowerment. However, we did not find evidence for positive effects of SHGs on psychological empowerment. Our findings further suggest there are important variations in the impacts of SHGs on empowerment that are associated with program design and contextual characteristics. Findings from qualitative synthesis: Women’s perspectives on factors determining their participation in, and benefits from, SHGs suggest various pathways through which SHGs could achieve the identified positive impacts. Evidence suggested that the positive effects of SHGs on economic, social, and political empowerment run through the channels of familiarity with handling money and independence in financial decision making, solidarity, improved social networks, and respect from the household and other community members. In contrast to the quantitative evidence, the qualitative synthesis suggests that women participating in SHGs perceive themselves to be psychologically empowered. Women also perceive low participation of the poorest of the poor in SHGs due to various barriers, which could potentially limit the benefits the poorest could gain from SHG membership. Findings from integrated synthesis: Our integration of the quantitative and qualitative evidence suggests there is no evidence for adverse effects of women’s SHGs on the likelihood of domestic violence. Women’s perspectives in the qualitative research indicate that even if domestic violence occurs in the short term, in the long term the benefits from SHG membership may mitigate the initial adverse consequences of SHGs on domestic violence