Mazzucato, Mariana;
Macfarlane, Laurie;
(2023)
Mission-oriented development banks: the case of KfW and BNDES.
(Working Paper Series: IIPP WP 2023-13
13).
UCL Institute for Innovation and Public Purpose (IIPP): London, UK.
Preview |
Text
Mazzucato_Mission-oriented development banks_WP.pdf - Published Version Download (402kB) | Preview |
Abstract
There is an urgent need for channelling long-term finance towards addressing major social, environmental, and economic challenges. The paper argues that state investment banks (SIBs) can play a crucial role in mobilizing the needed capital, and that they can most effectively do so when structured and governed to play a ‘mission-oriented’ role. We provide an empirical account of two SIBs that have played an active mission-oriented role in their respective economies: Germany’s KfW and Brazil’s BNDES. We reflect on these empirical findings and identify key institutional characteristics that have enabled them to play this role, including challenge-led mandates, use of progressive conditionalities, stable sources of finance, diverse in-house expertise, and robust governance structures. The paper concludes with a discussion on how mission-oriented SIBs can be complemented by wider reforms to the global financial system.
Type: | Working / discussion paper |
---|---|
Title: | Mission-oriented development banks: the case of KfW and BNDES |
Open access status: | An open access version is available from UCL Discovery |
Publisher version: | https://www.ucl.ac.uk/bartlett/public-purpose/wp20... |
Language: | English |
Additional information: | This version is the version of record. For information on re-use, please refer to the publisher's terms and conditions. |
Keywords: | State investment banks, green finance, patient finance, mission-oriented policy, innovation |
UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Inst for Innovation and Public Purpose |
URI: | https://discovery-pp.ucl.ac.uk/id/eprint/10196217 |
Archive Staff Only
![]() |
View Item |