New Report Finds International Finance Institutions Critical for Job Creation in Emerging MarketsWashington, D.C., 23 Sep 2011
A new report finds that international finance institutions play a key role in catalyzing job creation and growth through the private sector in emerging markets, particularly as governments face increased pressure on public resources.
The report, International Finance Institutions and Development through the Private Sector, was launched during the World Bank-IMF Annual Meetings. It was produced by 31 international finance institutions (IFIs). Senior officials of more than 20 IFIs are attending the launch event.
Key findings of the report are:
- IFIs provide the private sector in developing countries with critical capital and knowledge. Private sector direct foreign investment finance has reached over $40 billion in commitments a year–about five percent of capital flows to emerging markets.
- IFIs help companies set standards and manage risk in areas such as environmental and social standards; corporate governance; health and safety, sponsor and business integrity; labor and human rights; revenue transparency; and international financial reporting.
- IFIs catalyze additional financing from other private sector players. Each $1 of capital supplied to IFI’s can lead to $12 in private sector project investment
- IFIs support entrepreneurship and innovation, helping demonstrate the viability of private solutions in new or challenging areas.
“BSTDB joined this coordinated initiative by a large group of IFIs and contributed to the report that is essential for promoting enhanced synergies among development partners. Joining forces with other IFIs, the Bank is diversifying its support for the private sector development, particularly for small and medium-sized businesses in the countries of the Black Sea region, that is crucial for achieving sustainable growth, job creation and social cohesion” said BSTDB President Andrey Kondakov.
The report was initiated under the sponsorship of the Private Sector Development Institutions Roundtable, an annual meeting of the heads of IFIs that focus on the private sector. The meeting is coordinated by IFC.
Access the report at the BSTDB website: http://www.bstdb.org/about-us/key-documents/IFIs_Report_23_09_2011.pdf
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The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is SDR 3 billion (appx. EUR 3,3 billion). BSTDB is rated long-term A by Standard and Poor’s and A3 by Moody’s. For more information, visit www.bstdb.org
Tel: +30 2310 290533