Development Finance Institutions : Measuring Their Subsidy

Schreiner, Mark ; Yaron, Jacob

Washington, DC:World Bank

关键词: ACCOUNTING;    ACCOUNTING PRINCIPLES;    ACCOUNTING SYSTEMS;    BALANCE SHEET;    BENCHMARKS;   

DOI  :  10.1596/0-8213-4984-8
RP-ID  :  23037

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The term "development financeinstitutions" (DFI) encompasses no only governmentdevelopment banks, but also nongovernmental micro-financeorganizations, that match grants to attempt to promotecommunity development, decentralization of power, and localempowerment. Measures of the social cost of DFIs thatreceive public funds, help to check whether DFIs are gooduses of public funds, i.e., if the social benefit of a DFIexceeds the social cost, then public funds are indeedwell-spent, further improving social welfare. This reportdescribes the measurement of costs but not of benefits; buteven without knowledge of benefits, knowledge of costs canhelp to adequately spend funds. Two measures of social costare presented: first, the Subsidy Dependence Index (SDI) -the ratio of subsidy received to revenue from loans; and,subsidy is the social cost of the public funds used to run aDFI - which does not discount flows, rather it works inshort time frames, or when the rate of time preference islow; second, the Net Present Cost to Society (NPCs) - likestandard present-value measures, it discounts cash flows,and works in any time frame. Both SDI and NPCs are tools, tohelp establish benchmarks, chart trends, and compare a DFIwith identical clients, and services. It is stipulated thatmeasurement of the social cost of public DFIs mattersbecause funds earmarked for development are scarce, whilesubsidies for DFIs could be adequate, provided socialwelfare improves in a broader scale.