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Washington, D.C., September 23, 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:
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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.
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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.
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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
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IFIs support entrepreneurship and innovation
, helping demonstrate the viability of private solutions in new or challenging areas.
“At a time of scarce public resources, the private sector is critical for job creation and economic growth,” said IFC Executive Vice President and CEO Lars Thunell. "IFIs can play a key role in supporting companies in emerging markets. By focusing on areas where we can add the most value, we can also help ensure that every dollar we invest makes a difference in people’s lives.”
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.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
.
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