Akhil D's Senior Project Blog
Project Title: Assessing Development Finance Institution activities in developing countries BASIS Advisor: Bryce White Internship Location: Ernst and Young Onsite Mentor: Ravi Gupta |
Project Abstract
This research project will deeply examine Development Financial Institution (DFI) Investments in Africa. It will answer questions regarding the past, present, and future—What DFI activity alreadyexists in Africa? Is DFI activity beneficial for developing economies in Africa? What changes can be made to streamline DFI investment? What is the future of DFI activity in Africa as economic nationalism and isolationism increases? Developing economies worldwide are at an inflection point. Globalization spearheaded by DFIs has ushered in a new era of economic growth, while also making these economies more volatile and their governments less effective in implementing policy. Africa is yet the most recent continent to undergo this phenomenon, with countries undergoing both massive infrastructural advancements and political corruption. Moreover, the rising tensions between the U.S. and China are only creating more tensions on the continent, with DFIs getting strongarmed to promote these hegemonies' self-interest. It is critical to research the causes and effects of this phenomenon. The hoped result is that DFI activity becomes less beneficial to the economies the more they are influenced by the hegemonic battle between the U.S. and China.
Concluding Post
Hello everyone, As I reflect on the culmination of my senior project journey, I am filled with a gratitude for the experiences and knowledge gained during this transformative period. Delving into the realm of Development Finance Institutions (DFIs) and their investments in Africa, under the guidance of Ernst & Young, has been an enlightening exploration... Read More
The Economic History of Africa
Hey all! Today, I am going to give an overview of Africa’s modern economic history. Understanding this is critical in understanding DFI investments on the continent and the growing need for DFIs. The colonial era (1884-1957) laid much of Africa’s modern economic groundwork. Missionaries, education, and laws used by the Europeans still exist today, and... Read More
Extraneous Variables
Hey everyone! Today, I am going to talk about the largest source of error when conducting my research. This research’s methodology relies on a case study approach. After analyzing over 260 individual investments, 40 were found with the following criteria that let’s them be used for analysis. Appraisal Reports – All case studies have more... Read More
Cost Allocations
Hey everyone! Today, I am going to talk about the cost allocation issues that come with DFI investment. Cost allocations and cost management is one the biggest sources of tension between DFIs and the governments they are helping. DFIs typically come into an investment with hopes of helping expand existing infrastructure. Rather, discussions with governments... Read More
Government-DFI Cashflow Growth Delay
Hi all! Today, I want to talk about a concept I’ve come across in my research, which is called the Government-DFI Cashflow Growth Delay. I made a meta-analysis of all the case studies projected cash flow growth in the 40 case studies. All investment time periods were “expanded out” to a 2000-2030 period and the... Read More
The Harms of MDBs
Hey all! Today I want to talk about my general findings of the harms in MDB-financed projects. Multilateral Development Bank financing of projects can have a range of adverse impacts, spanning economic, environmental, and social realms. Economically, projects financed by MDBs may suffer from cost overruns and mismanagement, diverting funds from other critical sectors and... Read More
Projecting the Future of the World Bank
Hey everyone! Today I wanted to walk you through a projection I did on International Development Association (IDA), one of the World Banks's development arms. The method I used is similar to a Discounted Cash Flow (DCF) analysis. In a DCF, you estimate the value of an investment based on its expected future cash flows,... Read More
Walkthrough of Cash Flow projections for an infrastructure project.
Hey everyone! Today, I want to show you a walk-through of a cash flow projection model I did for the Maputo Port Expansion Project. The purpose is to see how much investment from the World Bank will affect the Maputo Port Expansion's cash flows. Supported by the African Development Bank and other MDBs, this project... Read More
The Ethiopia-Djibouti Railway
Hey everyone! In today's blog, I want to go into a deep dive into one of the case studies I am working on. The Ethiopia-Djibouti Railway, funded by MDBs including the African Development Bank (AfDB) and the World Bank, connects landlocked Ethiopia to the Port of Djibouti, significantly improving trade and transportation efficiency in the... Read More
Case Study Overview
Hey everyone, welcome back! Today, I wanted to discuss the case studies that will be used in my project. The way I will be conducting my project is by looking at 29 different projects funded by MDBs all across Africa. Generally, all these case studies will fall into 1 of 9 categories. Transportation Infrastructure Projects... Read More
Development Banks – Africa’s main type of DFI
Hey everyone! This week, I am focusing on the types of DFIs in Africa. The main types of DFIs we see in Africa are Multilateral Development Banks (MDBs) and Regional Development Banks (RDBs). MDBs are financial institutions set up by a group of states. They are tasked to foster economic and social progress by financing... Read More
Introductory Post
Hey everyone! My name is Akhil Durvasula, and welcome to my blog! I plan to pursue a career in business, with a specific interest in finance and consulting. With my senior project, "Assessing Development Finance Institution activities in developing countries," I hope to quantify the impact of Devleopment Finance Institution (DFI) activity in developing economies,... Read More