Unlocking Private Capital to Emerging Markets & Developing Countries in a time of crisis:
Private sector capital flows are crucial for achieving Sustainable Development Goals (SDGs) and addressing climate change. Despite the doubling of concessional financing in the last two decades, the availability and cost of capital remain a key constraint due to geopolitical events and crisis factors such as the COVID-19 pandemic and Russia’s invasion of Ukraine. Despite these challenges - which have been especially felt by emerging markets and developing economies - there is an opportunity to encourage and facilitate cross-border resource flows to Emerging Market & Developing Economies (EMDEs), particularly as countries are designing green growth strategies.
Executive summary
The executive summary paper, “Unlocking Private Capital to Emerging Markets & Developing Countries in a time of crisis”, explores a number of instruments and measures available to support the flows of capital to investments into emerging markets that can accelerate growth and transition to a sustainable future. This paper includes an overview of:
- More effective policy measures to support capital flows, including supportive policies by the G20, International Monetary Fund (IMF), and Multilateral Development Banks (MDBs) during crisis periods
- Prudential measures to support Emerging Markets (EM) cross border investments
- Governance strengthening through improvements in Credit Rating Agencies’ (CRA) methodologies
- Mobilising resources though development of EMDE capital markets and addressing market access barriers
Call for feedback
We welcome feedback on these materials. Contact us at ssdh@naturefinance.net
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