Module 9 b - International Finance for Sustainable Development (6 ECTS)

Aims of the module:

Topics covered in the course include in particular:

  1. Overview of international financial flows (foreign direct investment, portfolio investment, remittances, public and private loans and grants)
  2. Introduction to the roles and functioning of financial markets and the current state of the international financial architecture (banks and development banks, stock and bond markets, foreign exchange markets, commodity derivative markets)
  3. Discussion of financial crisis (historical overview, causes of financial crisis, necessary policies to prevent financial crisis)
  4. Overview of aid instruments (definition of official development assistance (ODA) and total other support for sustainable development (TOSSD), conditionality of aid, new donors, soft loans, micro finance)
  5. Overview of issues and challenges in domestic resource mobilization (different taxes and their importance, different national tax systems, international tax avoidance and evasion, international regulatory initiatives)

Learning Outcomes:

On successful completion, students…

  • can access and interpret data on international financial flows (IMF, World Bank, OECD-DAC)
  • have an understanding of the functioning of national and international financial markets and their role in the development process
  • have an understanding of the causes of financial crisis and knowledge about possible policy instruments
  • have a critical overview of debates on international aid instruments
  • have an understanding on tax systems and challenges in developing country contexts
  • can conduct critical analysis and develop policy recommendations on development finance issues