Sectoral Policy Paper on Financial System Development

This sectoral policy paper highlights the key role of financial systems in economic and social development. It aims to serve as:

• A decision-making aid;
• Strategic guide for selecting, appraising, planning, implementing and evaluating projects and programs of German development cooperation.

Further, the paper studies:

• The role of financial system for partner countries:
  • Financial system as a key sector;
  • Correlation between regulatory systems, economic development and financial systems;
  • Correlation between national financial systems and international financial markets.
• Experience to date in financial system development:
  • International experience;
  • Bilateral development cooperation;
  • Implications for German development cooperation.
• Guidelines for financial system development in partner countries:
  • Objectives;
  • Development principles;
  • Target groups for assistance;
  • Development strategies and implementation;
  • Summary of assistance approaches in development cooperation;
  • Summary of implementation guidelines.

Thus, the paper helps in advancing lines of argument for the German position in the development community. It also serves as a guideline for German non-governmental organizations (NGOs).