Investment Financing in the Wake of the Crisis : The Role of Multilateral Development Banks
Sustained growth in emerging markets and developing economies requires long-term, reliable capital to finance productive investment, including in basic infrastructure. However, the availability and composition of long-term financing is constrained,...
| Main Authors: | , , |
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| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/06/17938866/investment-financing-wake-crisis-role-multilateral-development-banks http://hdl.handle.net/10986/22619 |
| Summary: | Sustained growth in emerging markets and
developing economies requires long-term, reliable capital to
finance productive investment, including in basic
infrastructure. However, the availability and composition of
long-term financing is constrained, partly due to fragile
market conditions and cyclical weaknesses in parts of the
global economy, as well as longer-term trends. This has had
a particularly negative impact on developing economies that
do not have reliable access to international bond markets
and on sectors that have traditionally relied on bank
lending (such as infrastructure). At the same time, fiscal
space has been eroded by the crisis, and the direct lending
capacity of Multilateral Development Banks (MDBs) remains
constrained. This heightens the importance of the catalytic
role of the official sector in mobilizing long-term
financing from the private sector by drawing on its ability
to reduce and share risk. This note explores some of the
ways in which MDBs are equipped to serve this purpose. |
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