International Finance Institutions and Development through the Private Sector
September 23, 2011—IFC and 30 other international finance institutions have launched a new report, International Finance Institutions and Development through the Private Sector.
The report finds that institutions such as IFC help catalyze job creation and growth through the private sector in emerging markets by providing capital, knowledge, advice on standard setting and risk management, and by mobilizing additional resources from other private sector players.
Other key findings:
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 5 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.