Dr. Eliseo S.
Dela Cruz
Professor
Don Honorio Ventura State University
Development Finance
Presented by: Rafael C. Chua
MPA Student
Objectives of Development
1. To increase the availability and widen the distribution
of basic life-sustaining goods such as food, shelter,
health, and protection;
2. To raise levels of living including, in addition to higher
incomes, the provision of more jobs, better education
and greater attention to cultural and humanistic
values, all of which serve not only to enhance
material well-being but also to generate greater
individual and national self-esteem;
3. To expand the range of economic and social choice
to individuals and nations by freeing from them
servitude and dependence, not only in relation to
other people and nation-states, but also as to forces
of ignorance and human misery.
Understanding Development finance can be broadly
Development defined as the use of public sector
resources to facilitate private sector
Finance investment in low- and middle-
income countries where the
commercial or political risks are too
high to attract purely private capital.
It is a form of provision of credit
given to developing/less developed
countries so that they could
undertake development projects that
they could not otherwise afford.
Development projects may develop tourism-
related businesses, such as athletic and
cultural events, show and public gatherings,
racing facilities, parks and recreation facilities,
art galleries, museums, and art centers.
In the efforts devoted to improving economic
and social conditions in developing countries,
Economic developers are considered as the
bridge between governments and
businesses. These finance efforts through
partnership, cooperation and mutually
advantageous programming will provide
solutions to the challenges that the local and
global environment creates.
Importance of 1. It help businesses to acquire
Development working capitals so they could
invest for themselves
Finance 2. It help project developers
achieve acceptable Return of
Investments (ROI)
3. It helps communities acquire
infrastructure the amenities
4. It helps citizens acquire
opportunities for advancement-
e.g. jobs, small business,
education, etc
5. It helps local regions achieve
economic prosperity
Sources of
Development
Finance
Breaking Down
DEVELOPMENT FINANCE
Sources of 01 Domestic Revenues Mobilization
Development Taxation and Non-Tax Revenue
Finance 02 Grants from Multilateral and
Bilateral Partners
Asian Development Bank and World Bank
03 Borrowings
It is difficult for all developing countries to finance economic, social and
sustainable development because these developments are very
expensive
04 Institutional Investors, including
Sovereign Wealth Funds
Pension Funds, Insurance Companies, Mutual Funds, Sovereign Wealth
Funds
Sources of 05 Diasporas
Development Diaspora which includes labor migrations or overseas workforce who
send remittances from other countries to our home countries.
Finance 06 Carbon Markets
Carbon Finance tackles carbon emissions. It is used to close funding
gaps so that new carbon emission projects would become viable.
07 Resources-for-Infrastructure
Under this method, oil or mineral extraction rights are exchanged for
financing infrastructure projects
Recommendation & Conclusion
Finance development will help the Philippines accelerate its
economic, political, social and environmental growth. However,
is it a question of whether or not the country can afford it. True,
that there are many available sources of finances but the
country is now highly indebted and highly dependent in external
sources. In this time of crisis brought by the pandemic, the
country must make efforts in accessing new and other sources
of financing rather than relying on debts and foreign loans. For
instance, it can enhance its domestic resource mobilization and
have foundation of good polices and effective institutions
to have a stable financing development in the years ahead.
Recommendation & Conclusion
In pursuing good governance, the state must develop adequate
policies that will resolve economic, political, social and
environmental challenges. In this account, I believe that all
citizens must also be directly responsible for the overall outcome
the country’s development. It is necessary that we must recognize
the welfare of the many, relate to common ethical/cultural
standards and must indicate solidarity irrespective of their cultural,
political, and economic differences.
Recommendation & Conclusion
To achieve a sustainable development, we must learn to take
steps. The good that we can do is to transform our attitude
towards our government. We can start by trusting ourselves and
our government. 1) we must be responsible in keeping our
environment healthy, 2) we must develop whatever resources we
have (education, man power, environmental), 3) we must
understand and obey our laws, 4) we must influence other
people to maximize their political, economic, social will for the
sake of serving the country, 5) we must make good decisions in
our lives by abiding with the universal ethical standards, and 6)
we must be committed in everything that we do.
THANK YOU!
Sources
Andrea Levere, Bill Schweke, and Beadsie Woo, Development Finance and Regional Economic Development,
Washington, DC: CFED, July 2006
Briones, Leonor M. 1996. Philippine Public Fiscal Administration. Volume 1.
Dirk Willem te Velde and Michael Warner (2007) Use of subsidies by Development Finance Institutions in the
infrastructure sector Overseas Development Institute
Mobilizing Climate Finance, a paper prepared under the coordination of the World Bank Group
at the request of G20 Finance Ministers, 2011.
Asian Development Bank. Fighting poverty in Asia and the Pacific. 2014 [Link]
[Link] and Tax Effort." Department of Finance (DOF). Department of Finance; n.d..Web. 7 May 2011
Feb 2014. University of Tennessee- Center for Industrial Services- Economic and Development.
Understanding Economic Development [Link]://[Link]/ErinKetelle/understanding-
economic-development-finance?qid=fee0bbb5-ed34-4b22-9f46-
b8bc048595f0&v=default&b=&from_search=[Link] retrieved: July 18,2014