I think current state of impact investing is creating more income inequality in developing country like Nepal........My conclusion was influenced by two things I read over the weekend
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Last time I checked, the objective of impact investment was to invest in scale-able social enterprises and SMEs. But if you look at ground reality things are completely different. To ensure there fund economics work,impact investors both social first or finance first funds tend to investment in companies that can take large amount of capital (large in terms of Nepali context,a company with a fixed asset of more than $130K is defined as large scale company) . These capital seeking companies usually fall under some big business house's conglomerate..........................................................................
- Why Nations Fail- the main thesis of the book is that some Nations are poor because institutions are "Extractive," serving only a small elite that takes income from everyone else.
- Government of Nepal hikes minimum foreign direct investment to USD 55K
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Last time I checked, the objective of impact investment was to invest in scale-able social enterprises and SMEs. But if you look at ground reality things are completely different. To ensure there fund economics work,impact investors both social first or finance first funds tend to investment in companies that can take large amount of capital (large in terms of Nepali context,a company with a fixed asset of more than $130K is defined as large scale company) . These capital seeking companies usually fall under some big business house's conglomerate..........................................................................
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