Delivering Inclusive Financial Development and Growth

Lead Research Organisation: University of Birmingham
Department Name: Accounting and Finance

Abstract

According to Stiglitz (2006), the financial system acts as the 'brain' of an economy. Financial institutions and markets promote the dissemination and co-ordination of information about resource availability at every level throughout the economy, and so they enable an efficient allocation of these resources for supporting economic growth. However, it is not altogether clear how finance can deliver inclusive financial development and growth. Recent empirical research shows that in LICs there are financial development gaps as well as financial inclusion gaps (Allen et al., 2014). In addition, the links between the financial system and economic development have come under increasing scrutiny in recent years, especially following the 2007-09 global financial crisis (Caballero, 2015). The current consensus is that there is urgent need for research on the role of the finance in fostering inclusive financial development and sustainable economic growth.

Led by the University of Birmingham, a consortium of UK and international partners will collaborate on this four-year programme of research. Partner institutions include the Institute of Development Studies at the University of Sussex, Loughborough University, the Overseas Development Institute, SOAS at the University of London, and the University of Nottingham in the UK, and the Universities of Groningen in the Netherlands, Laval in Canada, and Columbia in the US. Crucially, the project consortium also includes researchers from institutions in sub-Saharan Africa (SSA), namely the University of Ghana-Legon and the African Economic Research Consortium (AERC) in Kenya, who stand to benefit from the organisational and institutional capacity-building opportunities which underpin the research programme.

The aim of this research is to identify workable policies to help make the financial sector an effective instrument in promoting financial inclusion and sustained growth in LICs, and consequently create an enabling environment for transitioning these countries to middle income status. We will provide a set of answers to ALL THREE critical questions posed in the Call for Proposals concerning i) the role of international capital flows in growth and development, ii) the design and provision of institutional frameworks to support financial development, and iii) the ways in which financial systems can help generate and transmit technical change in the economy as a whole.

To achieve this ambitious goal, the project will be structured into four clusters on 1) institutional framework for inclusive growth, 2) capital flows, 3) technological diffusion, and 4) a cluster which will run in parallel to the other three to synthesise findings in order to derive meaningful policy recommendations and drive tangible global impact. Component II of the programme is planned to focus on additional policy-oriented issues, and will be developed in tangent with DFID policymakers, the ESRC and other national and international academics and end-user stakeholders, and will be run in partnership with the Africa Growth Initiative at the Brookings Institute, US.

The research will cover a wide range of topics within the overall remit of financial sector development, so multiple innovative research methodologies will be employed across eight integrated work-streams. Methods include institutional analysis, i.e. the assessment of how institutional features of financial systems contribute to, or impede, financial sector objectives; field experiments; comparative analysis of the experience of countries with different policies and institutions; rapid appraisal and participatory appraisal methods; quantitative analysis of company and bank balance sheets, and quantitative and qualitative analysis of survey data. The major part of the research programme will entail empirical research based on fieldwork in selected LICs in SSA (Ethiopia, Ghana, Kenya, Rwanda, Uganda, Zambia), with wider application to other LICs globally.

Planned Impact

The direct beneficiaries of this research will be individuals and companies in low income countries (LICs) whose wellbeing will be improved by both enhanced access to financial services (inclusion) and improved financing of development projects (effectiveness). There are three principal groups of beneficiaries:

1) Users of finance in low-income countries (LICs)

The research has been designed to maximise opportunities to engage with individuals in LICs through, for example, interviews, focus groups and surveys, seminars and research findings dissemination workshops. Outputs, influenced by their input to the project, will be geared towards influencing policy decisions which can maximise access to finance for those living in LICs in sub-Saharan Africa.

2) Organisations involved in financial development

The research will engage with organisations such as finance NGOs, banks and financial services organisations, and government departments by contributing to knowledge on financial inclusion, financial development, and on the types of policies most appropriate to the needs of financially excluded people. Furthermore, there will be scope for engagement with associations of entrepreneurs, e.g. micro, small and medium companies, to better understand their needs and major obstacles they face in accessing finance, to collect primary data at their level and to gain insight into their perceived view of proposed new financial innovations.

3) The broader policy community

The final group of beneficiaries is the broader community concerned with financial development and financing for development, including international organisations (e.g. the World Bank, African Development Bank), NGOs and donors such as DfID. The research will ensure that these institutions' actions can be better informed by contributions to knowledge on how to enhance the wellbeing of individuals through inclusive access to finance.

The research will result in short, medium and long-term outputs for these groups:

Short-term benefits: During research delivery, key end-users will be engaged as project stakeholders to steer the project. This will ensure that impact is meaningful, and is influenced directly by their needs in order to respond to challenges which they face. Stakeholders will include those in senior positions of large organisations such as the African Development Bank, IMF and Higher Education Institutions in the research regions (through mechanisms such as the Advisory Board), through to users of finance in sub-Saharan Africa who will be invited to participate in workshops and focus groups to be delivered throughout the fieldwork phase of the project.

Medium-term: Upon wider dissemination of findings, it is anticipated that a set of key policy recommendations will be produced which will steer government officials, policy/decision makers, civil actors, donor groups, NGOs, and central banks in LICs in sub-Saharan Africa (SSA). The policies implemented as a result of these findings should seek to enable greater access to finance for those in SSA LICs, as well as greater integration of financial products and new technologies in financial organisations in these regions.

Long-term: In the long-term, it is hoped that the findings and outputs from this research, and associated policy changes in LICs, will be influential in the ongoing efforts to relieve poverty in LICs and offer substantiated evidence upon which to base strategies for the transitioning of counties in SSA from low- to middle-income status. Furthermore, it is hoped that, analyses of 'what works' in these regions will engender future research in other LICs globally.

A week-long Initial Stakeholder Workshop will be held in Ghana in the first year of the project for representatives from key research regions in SSA. It will include talks from notable guest speakers, knowledge exchange events, and interactive end-user seminars (full details are in the Pathways to Impact).

Publications


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Related Projects

Project Reference Relationship Related To Start End Award Value
ES/N013344/1 23/05/2016 31/03/2017 £1,726,450
ES/N013344/2 Transfer ES/N013344/1 01/04/2017 22/05/2020 £1,555,939
 
Description The award is still in progress (2016-2020) but we have one key finding we wish to report at this stage. The key finding relates to how foreign direct investment (FDI) in the banking sector affects the behaviour of the domestic financial sector in Africa (Work-stream 2.4 in the research project).

For the last two decades, the spotlight has been on FDI in banks in Anglophone Africa. But, banks in Francophone West Africa are not only going cross-border, they are also leaving the cross-roads, where they had sojourned since 2008, in terms of bank regulation. The banks are taking the visible fork in the road, leading to high capital buffers. The beacon is the new regulatory tool, Basel III, with its new rules for global finance.

Using hand-collected bank level data from all West African Economic and Monetary Union (WAEMU) countries for 2000-2014, we (research team of Victor Murinde, Issouf Soumare and Desire Kanga ) investigate how high capital requirements affect the behaviour of domestic banks, taking into account bank ownership and cross-border banking. We establish that FDI in the banking sector of WAEMU countries, who have a regional central bank (BCEAO or Banque Centrale des États de l'Afrique de l'Ouest), is mainly through foreign bank ownership and cross-border banking. We find that banks' capital positions tend to be counter-cyclical in LICs, mimicking an important key element of Basle III, overall reducing credit risk in the banking sector. The overall policy implication of this finding is that, through foreign ownership and cross-border banking, FDI has the potential to stabilize the banking sector of WAEMU countries and hence to support the regulatory role of the regional central bank (the BCEAO).
Exploitation Route We are already working with with the Banque Centrale des États de l'Afrique de l'Ouest (BCEAO) to take these findings forward, undertake further relevant studies and enhance policy dialogue on the regulatory implications of these findings, especially to address the some reservations associated with FDI and cross-border banking in the region.
Sectors Financial Services, and Management Consultancy,Government, Democracy and Justice,Security and Diplomacy
 
Description The research project started in May 2016, so it is at the early stages for us to report impact based on empirical findings. But, suffice it to report at this stage is that the ongoing work supported by this award has registered the participation of three types of stakeholders (policy makers, private sector practitioners and civil society) in working with us to investigate ways of "delivering inclusive financial development and growth in Africa". An example here is the active participation of the International Advisory Group made up of 13 distinguished persons from: (1) policy makers in the financial sector (central bank governors); (2) private sector practitioner in the financial sector; (3) civil society (at the rule-making global level); and (4) leading academics at the forefront of econometric methods and finance models. The profiles of these eminent persons are highlighted on the project website at: http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/iag-group.aspx Indeed, this report will be updated as impact emerges and develops in the period 2017-2020 and thereafter.
First Year Of Impact 2017
Sector Financial Services, and Management Consultancy,Government, Democracy and Justice,Security and Diplomacy
Impact Types Societal,Economic
 
Title Mixed Methods 
Description The award started in May 2016 and we are now developing tools for employing innovative mixed methods in our research. I cite two examples. (1) In Cluster 1, work-stream 1.1, we will conduct randomized controlled trials (RCT) to test the relevance of new financial products. We will use a mixture of quantitative and qualitative research methodologies. More specifically, per intervention we will conduct 2 surveys (a baseline survey and an endline survey) and analyze the data using quantitative techniques. In addition, we will organize focus group discussions and in-depth stakeholder interviews to complement and better understand the quantitative results. (2) In Cluster 3, work-stream 3.2, we will start with available secondary data; we then conduct fieldwork surveys to collect and analyze information on 'trust', such as in the diffusion of financial technologies among households and small firms. We will then conduct focus group discussions and stakeholder interviews to validate our preliminary findings about the possible transformative power of technology diffusion in financial inclusion, with respect to households and companies. We will report fully on these at the next round. 
Type Of Material Improvements to research infrastructure 
Provided To Others? No  
Impact Not yet. 
 
Title Building Datasets on Institutional Quality Indicators for Africa 
Description As part of this research project, Professor Murinde (PI) and his team of researchers are building a database on Institutional Quality Indicators for African countries. The database covers legal institutional quality indicators, L1-L9 categories; political institutional quality indicators, P1-P12 categories; and economic institutional quality indicators, E1-E11 categories. The sample period is from 1970-2014; unbalanced due to some data gaps for some countries, especially fragile states. Much of the database has been constructed, but the entire dataset is being pre-tested for release later this year. 
Type Of Material Database/Collection of data 
Provided To Others? No  
Impact Not yet, except wide expression of interest in the data by researchers, from the presentations made at the recent research workshop at SOAS University of London, 3-4 March 2017. See: http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news.aspx 
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news.aspx
 
Title Building a database on African stock markets and listed companies 
Description As part of this research project, a team led by Professor Victor Murinde (PI) - involving researchers at the University of Nairobi and Co-Investigators at Loughborough University, SOAS University of London, Laval University and University of Ghana - is building a database on African stock markets and listed companies. The trial was done on Kenya, using the Nairobi Stock Exchange and covering all the firms listed or cross-listed on the exchange. The current database is multi-level: countries, stock exchanges, and listed companies. The following 18 African countries are covered: Botswana, Egypt, Ghana, Ivory Coast, Kenya, Malawi, Mauritius, Morocco, Namibia, Nigeria, Rwanda, South Africa, Swaziland, Tanzania, Tunisia, Uganda, Zambia, Zimbabwe. Ivory Coast includes the regional stock exchange. For each listed company, many financial variables are covered, including price per share, dividend yield, earnings per share, shares outstanding, price to book value, etc... The period covered is 2001-2016 (unbalanced, due to data gaps). Going forward: Data to be made available on research project website; more company finance variables to be included in the dataset; completion expected by October 2017. 
Type Of Material Database/Collection of data 
Provided To Others? No  
Impact Not yet, but will be the authoritative multi-level data on African stock exchanges and listed companies. 
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news.aspx
 
Title Database on financial inclusion indicators for Africa 
Description A team of Co-Investigators on this research project is building databases on key financial inclusion indicators, specific to Africa, as a direct result of this ESRC research project. The team is based at Loughborough University and is led by Christopher J. Green (Co-Investigator), Ahmad Hassan Ahmad (Co-Investigator) and Fei Jiang (Research Fellow on this project). The dataset is idea for multi-level empirical work. It includes micro-level data and macro-level data; Micro-level: household surveys, enterprise surveys; Macro-level: aggregate information, country total. Also includes demand-side data and supply-side data: Demand-side - data collected from mobile money users, households or firms, field interviews; Supply-side - data recorded by mobile money providers/operators, e.g. administrative telecoms data. A powerpoint presentation to describe the databse was presented at the Research Project Workshop held at SOAS University of London on 3-4 March, 2017 and is available at the project website: http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news.aspx 
Type Of Material Database/Collection of data 
Provided To Others? No  
Impact No impact at this stage, except strong interest in multi-level emprical research, expressed by many researchers at the workshop. 
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news.aspx
 
Title Database on sectoral capital flows for Africa 
Description As a direct result of this ESRC research project, a team of Co-Investigators on this research project is building databases on sectoral capital flows, specific to Africa. The team is led by Judith Tyson at ODI and include Victor Murinde (PI). The dataset includes all types of private capital flows: International - FDI, portfolio (bonds and equity) and bank lending; Domestic - bank lending, bond and equity Capital markets primary issuances. The data are collected from multiple sources, namely central banks, national statistics, national investment authorities, stock exchanges, etc.., are reconciled to the World Bank Development Database. The sample period covers 10 years from 2006 to 2015 (unbalanced). Excludes self-funded investments & short term government lending (e.g. Treasury bills). So far, 16 sample countries in Africa are covered. A unique feature of the dataset is that it has 4 levels: (1) Country level; (2) Field for source i.e. FDI, bank lending, portfolio ; plus domestic vs international; (3) Field for 4 sectors i.e. firm, household, government and other; and (4) Field for 9 sectors i.e. more detailed firm level capital flows for agriculture, commerce and trade, manufacturing, financial services, tourism, etc.. Hence, the dataset is idea for multi-level empirical work. A powerpoint presentation to describe the databse was presented at the Research Project Workshop held at SOAS University of London on 3-4 March, 2017 and is available at the project website: http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news.aspx 
Type Of Material Database/Collection of data 
Provided To Others? No  
Impact Not yet. However, the data presented at the Research Project Workshop at SOAS University of London produced interest for research collaboration with at least three Co-Investigators: Issouf Soumare, Stephany Griffith-Jones; and Stephen Spratt. 
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news.aspx
 
Title Not applicable, because our research project is on 'finance and development' rather than any aspects of medical sciences. However, one point of interest here is that some of the methods popularly used in medical research - specifically, randomized controlled trials to develop medical products - are used in our research project to develop financial products for the poor, rural households. Using CRT methods, we seek to develop a weather insurance financial product for rural farmers in Ethiopia. 
Description We will conduct randomized controlled trials (RCT) to test the relevance of new financial products. We will use a mixture of quantitatative and qualitative research methodologies.More specifically, per intervention we will conduct 2 surveys (a baseline survey and an endline survey) and analyse the data using quantitative techniques. In addition, we will organize focus group discussions and in depth stakeholder interviews to complement and better understand the quantitative results. See: "Improving trust and relaxing credit constraints to enhance uptake of weather insurance: A randomized controlled trial in Ethiopia", by Temesgen Belissa, Erwin Bulte, Francesco Cecchi, Shubhashis Gangopadhya and Robert Lensink, presentation at: ESRC Reference- ES/N013344/1: Delivering Inclusive Financial Development and Growth Research Project Workshop SOAS University of London, 3rd - 4th March, 2017 
Type Products with applications outside of medicine
Current Stage Of Development Initial development
Year Development Stage Completed 2017
Development Status Under active development/distribution
Impact Impacts not yet realised. For expected impacts, See: "Improving trust and relaxing credit constraints to enhance uptake of weather insurance: A randomized controlled trial in Ethiopia", by Temesgen Belissa, Erwin Bulte, Francesco Cecchi, Shubhashis Gangopadhya and Robert Lensink, presentation at: ESRC Reference- ES/N013344/1: Delivering Inclusive Financial Development and Growth Research Project Workshop SOAS University of London, 3rd - 4th March, 2017 
URL http://www.birmingham.ac.uk/Documents/college-social-sciences/business/research/inclusive-finance/wo...
 
Description AERC-DEGRP Workshop (Nairobi 28-29 October 2016) 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Policymakers/politicians
Results and Impact Participation in the AERC-DEGRP meeting on "Economic opportunities for a better future: Leveraging agriculture, innovation and financial inclusion" at Safari Park, Nairobi, on 28-29 October, 2016.

Chaired sessions and participated as a panelist on a round-table Davios style discussion on "Inclusive financial development and growth in Africa". Also some further presentations about the research project were made by by Murinde (PI), Senbet (Co-I), Abor (Co-I), and Lensink (Co-I).
Year(s) Of Engagement Activity 2016
URL http://event-reg.newmark.co.ke/
 
Description Academic Annual Conferences in Banking and Finance (Various) 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Study participants or study members
Results and Impact The PI and Co-Is participated in the usual annual conferences in the areas of econometric, banking, finance and development - perhaps too may to report in itemized form. To cite several examples here:
(1) Victor Murinde (PI), Joshua Abor (Co-I) and Mohammed Amidu (Co-Is), with their research team, participated actively in the Global Development Finance Conference, 23-24 November 2016, The Gateway Hotel, Umhlanga, Durban, South Africa. The following papers were presented:
Muriu, P., Murinde, V. and Mullineux, A.W. (2016), "Reflections on microfinance", in: N. Biekpe, D. Cassimon, and A.W. Mullineux (eds), Development Finance: Innovations for Sustainable Growth, London: Palgrave Macmillan (forthcoming 2017).
Dzeha, G.C., Abor, J., Turkson, F. E. and Agbloyor, E. (2016), "Will remittances into Africa avail for productivity growth", Mimeo, University of Ghana Business School.
Kriese, M., Abor, J. and Agbloyor, E. "Financial access and economic development" , Mimeo, University of Ghana Business School.
Mullineux, A. W., Murinde, V. and Vu, C. (2016), "Financial policies for enterprise growth in Africa: New evidence", Mimeo, Birmingham Business School.
Some of the papers are being published now.
(2) Econometric Society Africa Meeting, 25-28 July 2016, Kruger National Park, South Africa. The following paper was presented:
Kanga, D., Murinde, V. and Soumare, I. (2016), "Capital, risk and profitability of WAEMU banks: Do foreign ownership and cross-border banking matter?", Mimeo, Birmingham Business School.
(3) Fordham-Portsmouth Annual Conference in the UK in August 2016. The following paper was presented:
Murinde, V. Bai, Y., Maana, I., Ngoka-Kisinguh, K., Tiriongo, S. and Green, C.J. (2016), "The peer monitoring role of the interbank market in Kenya and implications for bank regulation", Mimeo, Birmingham Business School.
Year(s) Of Engagement Activity 2016
URL http://www.africagrowth.com
 
Description DEGRP Event July 2016 (ODI, London) 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Public/other audiences
Results and Impact Victor Murinde (PI) spoke about the research project during a panel event of ODI and DFID-ESRC Growth Research Programme (DEGRP) at ODI, London, on 13th July 2016, together with Stephany Griffith-Jones (Co-I) and Olu Ajakaiye, to stakeholders. The issues included how best to achieve inclusive economic growth and financial stability in low-income African countries. The discussion marked the launch of a new book: Achieving Financial Stability and Growth in Africa (Routledge Critical Studies in Finance and Stability) Hardcover - 24 Mar 2016, by Stephany Griffith-Jones (Editor), Ricardo Gottschalk (Editor). Victor Murinde, PI of the research project on "Inclusive Finance", highlighted the link between financial inclusion and inclusive growth. He endorsed the new book.
Year(s) Of Engagement Activity 2016
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news-items...
 
Description ESRC Festival 2016 (Birmingham, UK) 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Public/other audiences
Results and Impact Victor Murinde (PI) with a team of Tianshu Zhao (Co-I), Christopher J. Green (Co-I), Ye Bai (Co-I), Ahmad Ahmad (Co-I), Samuel Fosu, Jairaj Gupta, Sajid Chowdhury mounted the ESRC Festival 2016.
The main topic was: "Inclusive finance: Is this an illusion?" This was a two-day event on 7-8 November 2016 at the Birmingham Business School, University of Birmingham. The event featured six poster sessions, a public debate on 'financial inclusion' and a social media frenzy on 'inclusive finance'. Over the 2 days, more than 60 people attended physically and virtually through social media.
The main activities comprised:
(1) A poster presentation session with supporting background video clips discussing key findings and implications of respective research posters.
(2) A Davos-style debate that will involve animated discussion on: "My brain has confessed that 'financial inclusion' is an illusion. You: What do you think?"
(3) On the second day, each poster presenter will run an open social media session on all aspects covered in their poster session and debate, including other research in the Department of Finance.
View and listen to four of our poster presenters discussing their projects at:
http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news-items/escr-festival-event.aspx
The festival has generally sparked research interest in financial inclusion issues at the university, with reported change of views on keys ideas covered at the festival, especially the wider interpretation of financial inclusion.
Year(s) Of Engagement Activity 2016
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news-items...
 
Description Engaging with researchers and policy makers in Francophone West Africa (Abidjan and Dakar) 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact Issouf Soumare (Co-Investigator) conducted seminars in several institutions in Ivory Coast and Senegal in August 2016 in order to present a working paper on cross-border bank behaviour in Francophone West Africa and also to talk about the research project on financial inclusion.
There were three main presentations:
(1) Research paper and project presentations to Research Department, African Development Bank, in Abidjan in August 2016. About 45 researchers and practitioners from the African Development Bank attended and sparked interesting discussion on inclusive finance and inclusive growth in Africa, especially the lack of huge datasets to aid policy work.
(2) Research seminar at the BCEAO (the Central Bank of 8 West African States, Dakar, Senegal) in August 2016. The seminar was attended by about 40 researchers and policy makers at the central bank; they expressed great interest in the research project, especially in issues relating to Basel III and the interbank market.
(3) Research seminar at the Université Nationale Felix Houphouet Boigny of Ivory Coast, in August 2016, was attended by about 60 researchers, staff and postgraduate students. The presentation ignited some interesting questions, such that we continue to get expressions of interest in the current research programme.
Year(s) Of Engagement Activity 2016
 
Description Launch Event of the Research Project (Nairobi) 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Policymakers/politicians
Results and Impact Launch Event of the Research Project, 28th May - 2rd June 2016 at the AERC Bi-Annual Meetings in Nairobi. Kenya.
The launch event comprised two separate activities:
(1) A one day workshop on 28 May 2016 as an initial planning meeting with all researchers to discuss research programme, refine ideas, review GANTT charts and finalise plan of action, ahead of the meeting with stakeholders.
(2) Launch meeting: A special session was held on 30th May 2016 at the AERC Biannual Research Meetings June 2016, at Safari Park Hotel, in Nairobi, to launch ESRC/DFID - funded research project on "Delivering inclusive financial development and growth", under DEGRP Growth Research Programme, Call 3. The meeting included project researchers, stakeholders and members of the International Advisory Group, mainly to review plan of action. This was followed by a series of one-to-one meetings between project researchers and researchers from African universities who were being hosted by the AERC at the Bi-Annual Meetings.
Year(s) Of Engagement Activity 2016
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/news-items...
 
Description Makerere University and Bank of Uganda (Kampala) 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Postgraduate students
Results and Impact Presentations about the project and engaging with researchers in East Africa. Project presentations by Victor Murinde (PI) to Research Department, Bank of Uganda; School of Economics, Makerere University, during June 2016
Year(s) Of Engagement Activity 2016
 
Description Media and Publicity for Project 
Form Of Engagement Activity A press release, press conference or response to a media enquiry/interview
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Public/other audiences
Results and Impact The media and publicity for the project involved all the researchers, partner universities, and DEGRP. Some examples of these activities include:
(1) Press release publicising project by DEGRP and all partners during June-July 2016.
See: RCUK web: http://gtr.rcuk.ac.uk/projects?ref=ES/N013344/1
Also, see: DEGRP web: http://degrp.squarespace.com/project-call-3/2016/6/28/delivering-inclusive-financial-development-and-growth
(2) Setting up the website for the research project at the University of Birmingham- this is updated as we go; see: http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/index.aspx
(4) General publicity. See:
http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/media.aspx
Year(s) Of Engagement Activity 2016
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/index.aspx
 
Description Methodological Session (Dakar, Senegal) 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Public/other audiences
Results and Impact Professor Robert Lensink (Co-I) presented a methodological session to Group C (Finance & Resource Mobilization) at the AERC Bi-Annual Workshop on 7th December 2016 in Dakar, Senegal.

The presentation was about how randomized controlled trails (RCT), as a methodology, is applied to explore feasible financial products for financial inclusion in the current research project.

The session ignited interesting discussions and keen interest on new financial products for financial inclusion, in particular, weather insurance. We continue to receive follow up from other researchers and AERC stakeholders with respect to our research project on issues raised at the session.
Year(s) Of Engagement Activity 2016
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/index.aspx
 
Description Pre-Launch Senior Policy Seminar (Nairobi, Kenya) 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Policymakers/politicians
Results and Impact We took the initiative to hold a Pre-Launch Event of the research project at the Africa Economic Research Consortium (AERC) Senior Policy Seminar (SPS) in Nairobi, Kenya, on 22 March 2016, in order to engage with policy makers, private sector practitioners, civil society, and potential members of our International Advisory Group (IAG) for the project. The theme of the AERC-SPS was "Financial Inclusion in Africa", which coincided with our planned project on "Delivering Inclusive Financial Development and Growth". The meeting was attended by Victor Murinde (PI), Lemma Senbet (Co-I), Robert Lensink (Co-I) and Judith Tyson (Co-I), at our own expenses. There was excitement about our expected research project, from all stakeholders: researchers, policy makers, private sector and civil society. As a result, we were able to 'sign up' the following high level participants, who are now distinguished members of the IAG for the research project: Dr Caleb Fundanga (former Governor, Bank of Zambia); Professor Njuguna Ndungu (former Governor, Central Bank of Kenya); Dr Martin Brownbridge (Economic Advisor to the Governor, Bank of Uganda); and Dr Jo Marie Griesgraber (ED, New Rules for Global Finance, Washington DC).
Year(s) Of Engagement Activity 2016
URL http://aercafrica.org/index.php/news-events/223-inclusive-finance-for-low-income-countries
 
Description Presentations to University of Nairobi and Kenya Bankers Association (Nairobi) 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Professional Practitioners
Results and Impact Presentations about the research project and engaging with researchers and PhD students at the School of Economics, University of Nairobi in October 2016

Presentations about the project and engaging with the staff and executives of Kenya Bankers Association during October 2016
Year(s) Of Engagement Activity 2016
 
Description Research Peer Review session (Dakar, Senegal) 
Form Of Engagement Activity A formal working group, expert panel or dialogue
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Study participants or study members
Results and Impact Led by Victor Murinde (PI), Issouf Soumare (Co-I), Lemma Senbet (Co-I), Oliver Morrissey (Co-I), Joshua Abor (Co-I), Christopher J Green (Co-I), Laurence Harris (Co-I) and Njuguna Ndungu (a member of the International Advisory Group), a research peer-review session held at the AERC Bi-Annual and AERC-GDN Workshop on 3rd December in Dakar, Senegal, to validate any revisions to the research programme and plan of action.
Input was provided by participants at the GDN-AERC session, relating to research questions, data and fieldwork as well as policy relevance. This has helped shape current progress with the research project on 'Inclusive Finance'.
Year(s) Of Engagement Activity 2016
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/index.aspx
 
Description Research Project Workshop (SOAS University of London) 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Study participants or study members
Results and Impact Research Project Workshop, 3-4 March, SOAS University of London
Participants included: All researchers (PI & Co-Is) on the research project & their PhD students; Members of the International Advisory Group (IAG); Representatives from DFID & ESRC. The workshop was attended by the project research from all partner institutions: SOAS University of London, University of Birmingham, African Economic Research
Consortium (AERC), Columbia University, Institute of Development Studies (IDS), Laval University, University of Ghana, Loughborough University, ODI, University of Groningen,and University of Nottingham.
The main objectives of the Workshop were to: facilitate preliminary dissemination of draft survey papers, meta-analysis papers,systematic review papers, initial cross-country papers, or the first set of work under this research project; scope further for fieldwork plans in African countries for 2017-2018; solicit further input from members of the International Advisory Group for the project, stakeholders from DFID and ESRC, as well as other stakeholders, regarding enhancing the probability of uptake of our research for policy and practice.
DAY ONE: Friday 3rd March 2017
OPENING (Chair: Christine Oughton, SOAS University of London)
Welcome by Baroness Valerie Amos CH, Director of SOAS University of London
The 'Inclusive Finance' Research Project: Current Progress (Victor Murinde, PI, University of Birmingham)
SESSION I: Institutional Framework, Financial Institutions and Inclusive Growth (Chair: Christine Oughton, SOAS University of London)
Improving trust and relaxing credit constraints to enhance uptake of weather insurance: A randomized controlled trial in Ethiopia (Robert Lensink & Shubhashis
Gangopadhyay, University of Groningen)
Financial development and financial liberalization: Can social capital substitute for formal institutions?" (Niels Hermes, University of Groningen; Robert Lensink,
University of Groningen; and Victor Murinde, University of Birmingham)
Lunch (Plus Dataset & Fieldwork Discussion)
SESSION II: Cross-border Bank Contagion and Financial Development in East African Countries (Chair: Christopher J. Green, Loughborough University)
Cross-border interbank market and financial contagion: A survey (Ye Bai, University of Nottingham; Christopher J. Green, Loughborough University; and Victor
Murinde, University of Birmingham)
Mobile technology, financial inclusion and poverty-reduction in selected African countries: Going forward with the key issues (Christopher J. Green & Ahmad H.
Ahmad, Loughborough University
Data issues in understanding financial inclusion in Africa (Fei Jiang, Christopher J. Green & Ahmad H. Ahmad, Loughborough University)
SESSION III: Panel Discussion - Inclusive Financial Development & Growth - Insights from policy and practice (Chair: Lemma W. Senbet, African
Economic Research Consortium)
In this panel discussion, policy makers were able to share with researchers some of the priority policy issues for their countries today (e.g. for central banks in Africa) or the
policy priorities of donor organisations (e.g. DFID Policy Unit). Panellists from the private sector may also speak about some issues faced by private sector practitioners
or their experiences in trying to access finance for small businesses. Policy and practitioner issues may be related to financial inclusion (e.g. access and affordability
of finance by households and businesses), overall financial development, the behaviour of banks (e.g. risk-taking), the behaviour of non-banks (e.g. insurance
companies, etc..), the role of the capital market in facilitating capital flows for financing governments as well as private sector companies, or other contemporary or
futuristic issues.
Panellists
Sheila M'Mbijjewe, Deputy Governor, Central Bank of Kenya
John Ddumba-Ssentamu, Vice-Chancellor, Makerere University & Chair of the Board of Directors, Centenary Rural Development Bank Ltd, Uganda
Njuguna Ndungu, former Governor, Central Bank of Kenya
Martin Brownbridge, Economic Advisor to the Governor, Bank of Uganda
Athelston 'Tony' Sealey, Managing Director of Canefield Ltd, UK
DAY TWO: Saturday 4th March 2017
SESSION IV: Capital flows and financial sector reforms (Chair: Stephany Griffith-Jones, Institute of Development Studies)
The political economy of financial sector reform in sub-Saharan Africa (Stephen Spratt, Institute for Development Studies & Stephany Griffith-Jones,
Columbia University & IDS)
African banking sector development: The roles of remittances and monetary policy (Joshua Abor & Mohammed Amidu, University of Ghana)
Bank lending and competition in WAEMU banking system: Do foreign ownership and cross-border banking increase firms' access to finance? (Issouf Soumare,
Laval University; Lemma W. Senbet, AERC; Desire Kanga, ENSEA, Abidjan; and Victor Murinde, University of Birmingham)
SESSION V: Interaction between Public and private capital flows (Chairs: Laurence Harris, SOAS University of London)
Measuring aid: The issues (Oliver Morrissey, University of Nottingham & Victor Murinde, University of Birmingham)
Foreign direct investment in the banking sector and bank restructuring in Africa: The role of distance, culture, geography and other special factors (Tianshu Zhao,
University of Birmingham)
Sectoral capital flows and economic growth: What do we know about the dynamics? (Judith Tyson, ODI & Victor Murinde, University of Birmingham)
13:00
SESSION VI: Technology, Innovation and Finance (Chair: Issouf Soumare, Laval University)
The role of finance in technology diffusion within national and regional systems of innovations and diversity (Christine Oughton, SOAS University of London)
Trust in the financial services industry (Reinhard Bachmann, SOAS University of London)
The contribution of new technology to financial inclusion in LICs: Potential and issues (Laurence Harris, SOAS University of London)
Close

Powerpoint presentations have been uploaded on the URL below.
Year(s) Of Engagement Activity 2017
URL http://www.birmingham.ac.uk/schools/business/research/research-projects/inclusive-finance/index.aspx