Research highlights both the determinants and consequences of financial fragility in low income countries

A team of researchers from the Universities of Leicester and Aston will be revealing the novel findings of a successful ESRC-DFID bid into financial fragility and recommend ways to promote stability in low income countries at a conference on Friday 28 October.

Low-income countries (LICs) have experienced substantial economic growth over the last two decades. But this growth has not been sufficiently inclusive, transformational or resilient.

The two-day conference, ‘Economic opportunities for a better future: Leveraging agriculture, innovation and financial inclusion’, takes place between 28-29 October and is co-organised by the DFID-ESRC Growth Research Programme (DEGRP) and the African Economic Research Consortium (AERC).

The conference brings together business, government and research representatives from Africa and Asia to explore what can be done to turn this situation around.

During the conference, Dr Svetlana Andrianova from the School of Business and Dr Johan Rewilak, a former PhD student from the School, will be discussing the database of financial fragility and supplementing the database with two applications - one examining how financial fragility may impede economic growth beyond financial crises, and the second showing how financial inclusion may in fact help promote financial stability.  

Dr Andrianova said: “What makes the database novel is that it includes a wider variety of financial institutions that may measure financial fragility more accurately as opposed to purely using commercial banks. For example, co-operative banks and savings banks are generally more risk averse than their commercial counterparts and ignoring these institutions may overestimate financial fragility in a banking system.”

The conference agenda includes high-profile keynote speeches, policy panel sessions and research panel sessions.