ABSTRACT
This chapter introduces the notions of finance as capital and finance as a system, and development as a goal and development as a strategy. It explores the key measures and indicators of development, including economic growth, poverty and inequality. Finance accelerates economic growth and development because it provides the money and credit needed to facilitate economic exchange and investment in production. Some developing countries are also beginning to access the open financial markets through issuing bonds or through inflows of portfolio equity. Finance is central to economic development and the global financial system dwarves the rest of the economy. The Millennium Development Goals (MDGs) is referred to as the most important promise ever made to the world's most vulnerable people. Poverty is the standard place to begin in thinking about the relationship between global finance and development. The World Bank defines poverty as a position where individuals or households do not have command over enough resources to meet their needs.
