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21 October, 2021

How do Development Banks contribute to the development of a country

 

In  places  like  BD,  a  majority  of  the  applicants  for  financial  assistance  from  the  DFI‘s  in  the

initial  stages  were  existing  large  industrial  houses,  or  Managing  agency  firms.  These  institutions ha resource of   men materia and   money   and   wer therefore able   to   conceive pla and implement  new  or  expansion  projects  successfully.  Therefore,  there  was  no  problem  of  arrears. In  the  wake  of  socialist  policies  pursued  by  these  newly  independent  states,  further  growth  of large   industrial   house and   managing   agency   firms   throug DF assistanc wa considered monopolistic   and   exploitative   of   the   majorit by   the   minority These   were   conceive as institution  reminiscent  of  the  former  British  regime.  This  attitude  led  to  a  greater  intervention  of the state in the regulation and operation of DFI‘s, which in almost all cases were state owned.