Conference Proceeding No. 02 of 2002 on the Report of the Proceedings of the International Conference on Finance and Development: Evidence and Policy Issues

Abstract

A lot of research has been done in finance and development with the aim of establishing the direction of causality. This effort has been necessitated by the fact that important links exist between finance and development. Although there is no unanimous agreement among economists as to what leads to the other, there is substantial evidence that financial development is an important prerequisite for economic development. However, the movement from finance to development is a complex process that requires a careful analysis, given the unique characteristics of the financial market and the intricate links between private and public finance. Gaining an insight into the many aspects of finance and how they translate into development formed the core objective of the conference. More importantly, the conference came at an appropriate time to shed some light on the implications of current financial reforms and chart the way forward. Indeed, there are many issues emanating from these reforms that require an objective analysis. These include the kind of public policies needed to promote competitive financial markets, the effects of macroeconomic management on financial development, and regulatory issues. There is also need to understand the implications of globalisation on finance, the role of rural finance and micro-finance institutions and the role played by non-bank finance institutions.