Leveraging public and private investment to create markets where none exist and supporting the development of struggling markets is the core of IFC’s new 3.0 strategy. The opportunities to foster private markets stretch from education to health care and power supply, and from bond markets to commodity exchanges. Blending public and private finance addresses project specific financial challenges.
New technology and disruption can be positive forces for sustainable development. The latest analyses highlight how emerging markets have yet to fully take advantage of the opportunities that new technologies offer to increase development, growth and productivity. IFC seeks to foster innovations in emerging markets as well as eliminating obstacles to using and to the adoption of promising new technologies. Century old ideas promise a way to de-risk and leap forward.
Shifts to low carbon economies creates a need for innovative financing products to promote climate smart investments. A growing pool of investors is seeking to engage, but is lacking sustainable solutions. Emerging markets are facing the brunt of climate change consequences. Insurance can help reduce the impact of climate change.
Access to financial services is a major development challenge. The rise of digital financial services and the need for increased private financial flows at the same time provide a set of opportunities and challenges never seen before. Transmitting money needs to become both easier and safer in the face of national security concerns and Basel III.
Transforming infrastructure into an investable asset class can be the key to increasing financial flows into emerging market infrastructure. Financial instruments, new platforms and standardization efforts are needed to create markets for infrastructure and to scale private investments into infrastructure in developing countries.
Fragile and conflict states struggle to enable a conducive business environment. Instable institutions, the lack of infrastructure and public goods as well as the burden of conflict suffocate even best efforts of investments into private business. IFC shows that it can be done successfully.