ADB–OECD Study on Enhancing Financial Accessibility for SMEs: Lessons from Recent Crises

During the era of global financial uncertainty, stable access to appropriate funding sources has been much harder for small and medium-sized enterprises (SMEs). The global financial crisis impacted SMEs and entrepreneurs disproportionately, exacerbating their traditional financing constraints. The financial conditions of many SMEs were weakened by the drop in demand for goods and services and the credit tightening. The sovereign debt crisis that hit several European countries contributed to further deterioration in bank lending activities, which negatively affected private sector development. The global regulatory response to financial crises, such as the Basel Capital Accord, while designed to reduce systemic risks may also constrain bank lending to SMEs. In particular, Basel III requires banks to have tighter risk management as well as greater capital and liquidity. Resulting asset preference and deleveraging of banks, particularly European banks with significant presence in Asia, could limit the availability of funding for SMEs in Asia and the Pacific. Lessons from the recent financial crises have motivated many countries to consider SME access to finance beyond conventional bank credit and to diversify their national financial system. Improving SME access to finance is a policy priority at the country and global level. Poor access to finance is a critical inhibiting factor to the survival and growth potential of SMEs. Financial inclusion is thus key to the development of the SME sector, which is a driver of job creation and social cohesion and takes a pivotal role in scaling up national economies. The Asian Development Bank (ADB) and the Organisation for Economic Co-operation and Development (OECD) have recognized that it is crucial to develop a comprehensive range of policy options on SME finance, including innovative financing models. With this in mind, sharing Asian and OECD experiences on SME financing would result in insightful discussions on improving SME access to finance at a time of global financial uncertainty. Based on intensive discussions in two workshops organized by ADB in Manila on 6–7 March 2013 and by OECD in Paris on 21 October 2013, the two organizations together compiled this study report on enhancing financial accessibility for SMEs, especially focusing on lessons from the past and recent crises in Asia and OECD countries. The report takes a comparative look at ADB and OECD experiences, and aims to identify promising policy solutions for creating an SME base that is resilient to crisis, from a viewpoint of access to finance, and which can help drive growth and development

Fighting Poverty and Hunger - What role for urban agriculture?

Towns and cities are growing rapidly in developing countries. This process is often accompanied by high levels of poverty and hunger, leading many urban dwellers to engage in farming activities to help satisfy their food needs. Policy makers need to recognize this reality and actively seize the opportunities offered by urban agriculture.rural development, hunger, food security, economic crisis, prices, agriculture

Making the Food Aid Convention meet the realities of the 21st century

Emergency situations have become increasingly frequent over the past 25 years, often coupled with acute and chronic food insecurity in the affected countries. International responses to these crises have generally focused on addressing immediate humanitarian needs, as evidenced by the growing share of food aid that is channelled to emergencies. However, achieving lasting food security would often require an integrated development approach that combines short-term relief measures with longer-term mitigation strategies. A reformed Food Aid Convention (FAC) could provide the institutional framework for more effective interventions.rural development, hunger, food security, economic crisis, prices, agriculture

Reinventing the regions: Victoria’s changing regional economies

Regional Victoria accounts for around a quarter of the State\u27s population and economic output. In March 2013 Deputy Premier and Minister for Regional and Rural Development Peter Ryan released the Reinventing the Regions report which documents the findings from a series of events held in 2011-2012 which CEDA, in collaboration with RDV, hosted. This report provides an overview of the changes taking place in five of Victoria\u27s regional economies, key policy and economic themes that emerged from discussions throughout the series of events, case studies from regional businesses and five individual event summaries. The event series provided an opportunity to engage key stakeholders including business, industry, government, communities and academia in a discussion of: The key economic drivers and prospects for growth; Challenges faced by businesses across five regions; How regional businesses are adapting to evolving economic conditions; and How they can capitalise on new opportunities. The series consisted of five events looking at the experiences of Ballarat and the Central Highlands, Hume,Geelong and Barwon South West, Loddon Mallee and the Latrobe Valley. This publication is a joint project of CEDA and Regional Development Victoria. &nbsp