National development banks as a tool for neoindustrial growth

Oleksiy V. Matyushin, Oleksiy V. Aborchi

Abstract


The article deals with the functioning of national development banks in the context of neo-industrial growth, the conceptual proposals on the organization of the National Development Bank in Ukraine are developed. It is concluded that it is necessary to create a large development bank with a broad mandate in Ukraine. Following the example of Brazil or German development bank, its organization model should include: main development bank accumulating financial resources from internal and external sources, dealing with strategic management and is directly contacting with the relevant ministry or other government agency. Its resources are used for financing other banks including commercial ones, implementation of the large-scale national projects, shared sponsorship of large companies, and performance of other tasks determined at the state level. Branch development banks, which main task is the distribution of financial resources received from the main development bank, in accordance with their industry specialization. These banks belong to a mixed type, and can work with all types of clients including other commercial banks. Specialized funds are created for specific projects and provide financial resources subject to special conditions. Functions of the main and branch development banks, as well as functions specialized development funds should be clearly defined at the legislative level. They can be divided into active and passive, and in some aspects intersect with each other. A tentative list of these functions is shown. Development banks should contribute to forming favourable institutional environment, for which they should be entrusted with functions of monitoring and innovation and technology market research, expert assessment of the prospects for the implementation of national projects, coordination and cooperation development programs participants, consulting and analytical functions as well as functions of collecting, collating, publication, and dissemination of useful information. Full subordination of development bank to government agencies is not appropriate. It should be organized in the form of an independent regulatory agency, whose activities do not rely on the decisions of individual officials, but rely on the special law elaborated, which is constitutional and does not depend on the political situation. The meaning of such a model of organization is that the development bank should form a strategic vector of development of the economy defining the "long" rules of the game jointly produced by not only by the government, but also by representatives of business and civil society.

Keywords


national development banks; functions; tools; developing countries neoindustrialization

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References


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DOI: https://doi.org/10.15407/econindustry2016.01.017

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