Development Finance Institutions: Measuring their Subsidy

For decades, governments and donors have attempted to improve social welfare through public support for development finance institutions (DFIs). This monograph presents two measures of social cost. The first measure is the Subsidiary Dependence Index (SDI) and the second is the Net Present Cost to Society (NPCs). These measures help to establish benchmarks and to chart trends. They help to measure the social cost of development finance institutions (DFIs) that receive public funds. This is significant since funds earmarked for development are scarce. The measurement of social cost in this monograph is the first step toward the wiser use of public funds.