Guarantees for development
WP 11/2013
August 2013
OECD DEVELOPMENT CO-OPERATION
WORKING PAPER
The Development Assistance Committee: Enabling effective development
Mariana Mirabile, Julia Benn, and Cécile Sangaré
Organisation for Economic Co-operation and Development, France
GUARANTEES FOR DEVELOPMENT 1
Abstract
This Working Paper presents the results of a Survey on Guarantees for Development carried out in the context
of the OECD DAC work to modernise statistics on external development finance post 2015. No comprehensive
and internationally comparable data on guarantees for development and the volume of finance mobilised by
them exist at present. This Survey aimed to fill this information gap by estimating the volume of private sector
flows to developing countries mobilised by guarantee schemes. Guarantees for development purposes have
mobilised over USD 15 billion of private sector flows to/in developing countries over the period of study (2009-
11). This report analyses the data from the Survey (e.g. by sector and by country), includes a reflection on how
the amount mobilised by guarantees can be captured at an international level and comments on the leverage
ratio as a measure of efficiency of development finance.
This work is published on the responsibility of the Secretary-General of the Organisation for Economic Co-
operation and Development (OECD). The opinions expressed and arguments employed herein do not
necessarily reflect the official views of the Organisation or of the governments of its member countries.
This document and any map included herein are without prejudice to the status of or sovereignty over any
territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or
area.
GUARANTEES FOR DEVELOPMENT 2
Table of contents
I. Introduction ............................................................................................................................................. 3
II. Data Analysis ........................................................................................................................................... 4
II.a. How much? ........................................................................................................................................ 5
II.b. By whom? .......................................................................................................................................... 5
II.c. To whom? .......................................................................................................................................... 6
II.d. To which sector? ................................................................................................................................ 7
II.e. What are the main characteristics of guarantees issued for development?................................... 10
III. Measuring the Catalytic Effect of Guarantees: A First Reflection ......................................................... 11
III.a. Definition of “amount mobilised” ................................................................................................... 11
III.b. Amount mobilised vs. leverage ratio - the problem of calculating the leverage effect ................. 14
IV. Challenges and Next Steps .................................................................................................................... 15
ANNEX 1 - SAMPLE AND RESPONSE RATE ............................................................................................................ 17
ANNEX 2 - COUNTRIES BENEFITING FROM GUARANTEES .................................................................................... 20
ANNEX 3 - CALCULATING THE LEVERAGE RATIO: A CONCRETE EXAMPLE, DATA NEEDS AND METHODOLOGICAL
OPTIONS ............................................................................................................................................................... 21
GUARANTEES FOR DEVELOPMENT 3
GUARANTEES FOR DEVELOPMENT
A survey by the Working Party on Development Finance Statistics
(WP-STAT) of the OECD’s Development Assistance Committee (DAC)
I. Introduction
The OECD Development Assistance Committee (DAC) collects and publishes data on external resource flows –
i.e. financial resources, good or services from developed to developing countries. At its High Level Meeting in
December 2012, the DAC was mandated to take a new and broader look at development finance and to
improve statistics on external development finance beyond Official Development Assistance (ODA).
No comprehensive and internationally comparable data on guarantees for development and the volume of
finance mobilised by them exist at present: guarantees are not captured in the DAC statistical framework or in
international financial statistics more generally. The Survey on guarantees for development, carried out in the
context of the new DAC mandate, aimed to help fill this information gap
1
.
For the purposes of the Survey, “guarantees for development” were defined as guarantees extended with the
promotion of the economic development and welfare of developing countries as their main objective. The
Survey was based on a questionnaire sent to Development Finance Institutions (DFIs), aid agencies and
Ministries of Foreign Affairs in 24 DAC and 12 non-DAC countries, and to 17 International Finance Institutions
(IFIs) (see Annex 1)
2
.
The main objective of the Survey was to estimate the volume of private sector flows to developing countries
mobilised by guarantee schemes over the period 2009-11. The Survey aimed also to: i) explore the feasibility
of collecting qualitative and quantitative information on guarantee schemes in the future, as part of statistical
reporting on external development finance to the DAC; and ii) contribute to the on-going reflection and
discussions in various fora on how to measure the leverage impact of different instruments used in
development finance.
The report is structured as follows. Section II recalls the key terminology and presents the main results from
the data analysis, including an estimation of the amount mobilised by guarantee schemes. Section III explains
the reasoning behind the definition of “amount mobilised”, compares its calculation with that of a leverage
ratio and comments on the latter as a measure of efficiency of development finance. Finally, section IV
summarises challenges and next steps.
This publication aims to encourage reflections on the role and measurement of guarantees in the post-2015
development finance framework. Comments and suggestions to the Secretariat on this topic are welcome and
can be addressed to dac.contact@oecd.org
.
1. Detailed information obtained for this report at the level of individual guarantees is confidential. Results are
therefore being presented at aggregate level.
2 . Guarantees extended by export credit agencies were excluded as development is not their primary objective.
