Finance for development Essay Example | Topics and Well Written Essays - 1000 words

Finance for festering - Essay ExampleLaws and sparing policies differ in different countries hence the fiscal sector development and economic growth as well differ in different countries.Reforms of financial sector in BRIC or emerging countries started after the 2008/2009 spheric financial crisis. Ranking of financial development can be measured using Financial learning Index. This index is determined by various factors affecting the financial sector such as policies, financial intermediation, and financial access. The figure below shows how such factors interrelate to determine financial development index of a given economy or country.Due to the economic potential of BRIC economies, financial institutions have increased significantly in such countries. The figure below shows the number of banks that entered advanced economies and emerging economies between 1995 and 2009.The figure to a higher place shows that there were more banks entering emerging marts between 1995 and 2009 than banks entering advanced economies. Increased financial market participants and factors affecting financial sector development in emerging countries have caused general increase in financial index performance of BRIC economies as shown below.From the graph, it is clear that chinas financial sector development is greater than opposite BRIC economies, followed by Brazil, India and Russia consecutively. However, Chinas financial development index dropped in 2012. This may be attributed to the decrease in banking financial services scores. The country also performed poorly in cost of financial sector liberalization, bond market development and insurance development in 2012. On the other hand, Russias financial development index improved in 2012 collectible to improvements in financial markets anchor and equity development sub-pillar.In terms of economic growth, China remains the best performing due to its increase in economic growth rate from 2009 to 2012 followed by India,