New Report Finds International Finance Institutions Critical for Job Creation in Emerging Markets

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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 launched during the World Bank-IMF Annual Meetings. It was produced by 31 international finance institutions (IFIs). The private sector is recognized as a critical stakeholder and partner in economic development, a provider of income, jobs, goods, and services to enhance people's lives and help them escape poverty. Multilateral development banks and bilateral development finance institutions (together in this report called International Finance Institutions, or IFIs) play a significant role in supporting the private sector in developing countries. They provide critical capital, knowledge and partnerships, help manage risks, and catalyze the participation of others. They support the kind of entrepreneurial initiatives that help developing countries achieve sustainable economic growth.

Yet the important development contributions that IFIs make when engaging with the private sector in developing economies are often not clear or adequately communicated to stakeholders and the public. It is the aim of this report to help bridge that gap to increase the information and understanding about both the value of the private sector in development, and the role of international development finance institutions in supporting development through the private sector.

The report is a joint effort of over 20 multilateral and bilateral development institutions that have significant programs to promote private sector investment and assistance. This report was initiated under the sponsorship of the Private Sector Development Institutions Roundtable, which is an annual meeting of the heads of IFIs with a focus on the private sector, and was coordinated by the International Finance Corporation (IFC).

Download full report here