Think WIDER webinar — The potential of domestic savings in the Global South
Channel: UNU-WIDER
Date: 2023-02-09

Rose Ngugi and a panel of experts joined the Think WIDER Webinar Series on 7 February 2023 to offer insights on the potential of domestic savings in the Global South.

Domestic financing plays a crucial role in the revenue collection efforts of developing countries. Countries with high domestic savings rates tend to experience higher economic growth rates than others. The greater the domestic savings, the greater is the much-needed flexibility to implement homegrown policies to confront growth and development challenges. Furthermore, a high savings rate reduces vulnerability to sudden shifts in international capital flows.

Until now, there has been limited research taking place on this important topic, in spite of the increasing availability of good quality data. This one-hour session offered insights to the following questions: What are the key drivers of national savings rates? Could alternative approaches, for instance sovereign wealth funds or financial technology, provide new solutions to increase domestic savings? What are the risks? What are the behavioral determinants affecting people’s savings in low-income countries? What is the role of macroeconomic policy in increasing domestic savings?

The event was chaired by UNU-WIDER Director Kunal Sen, and the introduction to the topic was given by Dr Rose Ngugi, the Executive Director of the Kenya Institute for Public Policy Research and Analysis (KIPPRA). Discussants and panelists included Njuguna Ndung’u (Cabinet Secretary of The National Treasury and Economic Planning, Kenya), Tobias Rasmussen (International Monetary Fund Resident Representative, Kenya) and Amir Lebdioui (Development Economist, SOAS University of London).

See more on the event page: https://www.wider.unu.edu/event/potential-domestic-savings-global-south