New Report Finds International Finance Institutions Critical for Job Creation in Emerging Markets
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, will be 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:
"Although most stakeholders agree that IFIs have an important role to play in promoting development through the private sector, a comprehensive analysis of the subject was not available until now," said IIC’s General Manager, Jacques Rogozinski. "This report aims at filling this knowledge gap and the Corporation is proud to have actively participated in the production of this report and further contributed by designing and deploying the website that will serve as host of the report".
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 here: www.developmentandtheprivatesector.org
The IIC is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. The IIC’s mission is to promote the economic development of its regional member countries by encouraging the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. It does so by providing financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. In 2010, the IIC reached US$1.4 billion in assets and approved forty-nine operations channeling US$374.8 million to SMEs in the region. For more information on the IIC’s activities, please visit www.iic.org
- 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 U.S. dollar of capital supplied by an IFI can lead to US$12 in private sector project investment.
- IFIs support entrepreneurship and innovation, helping demonstrate the viability of private solutions in new or challenging areas. About the IIC
Contact: Sylvia Szankay
Telephone: (202) 623-3878