Manila, Philippines (BBN)– 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 produced by 31 international finance institutions (IFIs) and was launched during the World Bank-International Monetary Fund Annual Meetings.
The 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 5.0 percent of capital flows to emerging markets.
The 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.
ADB aims to scale up private sector development and private sector operations to 50% of the Bank’s annual operations by 2020.
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.
BBN/SSR/AD-23Sept11-7:55 pm (BST)