FIN5433

Description

Section information text: In the United States, Europe, and other developed countries of the world, the tools of investment finance have been piloted, fine-tuned, and diversified to meet the expanding needs of both the private and public sectors. The environment for finance in developed countries has been enhanced by policies and regulations to protect and incentivize investments between highly capable and well-informed partners. However, the environment for international finance in developing countries poses significant challenges for financiers and their implementing partners. Laws and policies related to land tenure may discourage long-term investments in agroforestry, political volatility may discourage public-private partnerships in energy production, and small private sector investors may lack the creditworthiness that is normally taken for granted in loan applications in developed countries. In addition, basic skills for project design and financial planning may be limited in developing countries, requiring a more significant engagement of financiers in the development and implementation of investment projects. The course is designed to help students understand the factors and constraints that need to be accounted for and addressed to support finance in agriculture, water, public services, and climate change in developing countries. The course introduces students to the diversified toolbox of financial instruments and mechanisms for development finance and guides students in assessing the financing building blocks that are essential for successful transactions and implementation. Students will learn how to select and tailor financing tools to specific contexts in both the private and public sectors in developing countries. Students will have an opportunity to develop financing proposals to address specific development finance issues and present their "proposals" in recorded presentations and PowerPoints during the final week of the semester. The class project is designed to simulate the process that is followed to develop and implement investment projects in developing countries.