Pioneering Firms in Fragile and Conflict-Affected States: Why and How Development Financial Institutions Should Support Them

Authors

  • Paul Collier University of Oxford and International Growth Centre
  • Neil Gregory International Finance Corporation
  • Alexandros Ragoussis International Finance Corporation

DOI:

https://doi.org/10.33423/jaf.v20i3.3016

Keywords:

Accounting, Finance, firms, innovation, pioneering, fragility, risk, development finance

Abstract

The role of ‘first movers’ in fragile states is critical: they grow and diversify markets in ways that no other firms do, generating disproportionate impact in terms of development and stability. But pioneer firms are rare in fragile states. This study documents their profile, their challenges, and the barriers which prevent them from realizing their potential. This study also explores the rationale and potential for development finance institutions (DFIs) to support them. We propose new ways to offset costs, risks, and the ‘unknown unknowns’ that generate radical uncertainty. Through a process of social learning, and resetting negative self-fulfilling investor narratives, DFIs can help pioneering firms shift the growth trajectory of fragile and conflict-affected states.

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Published

2020-08-23

How to Cite

Collier, P., Gregory, N., & Ragoussis, A. (2020). Pioneering Firms in Fragile and Conflict-Affected States: Why and How Development Financial Institutions Should Support Them. Journal of Accounting and Finance, 20(3). https://doi.org/10.33423/jaf.v20i3.3016

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Section

Articles