The Importance of Local Capital Markets for Financing Development
Rudimentary markets for capital - for raising money and investing - exist in even the remotest places around the world. However, prudent macroeconomic management, regulation, investor protection, and innovation are necessary to transition these nas...
| Main Authors: | , , |
|---|---|
| Format: | Brief |
| Language: | English |
| Published: |
International Finance Corporation, Washington, DC
2018
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/466641486540418996/The-importance-of-local-capital-markets-for-financing-development http://hdl.handle.net/10986/30354 |
| Summary: | Rudimentary markets for capital - for
raising money and investing - exist in even the remotest
places around the world. However, prudent macroeconomic
management, regulation, investor protection, and innovation
are necessary to transition these nascent markets, which are
often speculative ventures prone to fraud, into modern,
efficient, and well-functioning markets capable of serving
the needs of investors and entrepreneurs, borrowers, and
lenders alike. Developing local capital markets and making
greater use of them to fund private investment and strategic
economic needs tends to happens in stages. The experiences
of countries across the globe shows that capital markets
development is a gradual process requiring strong leadership
from government authorities as well as a significant
commitment of time and resources. If done correctly, the
payoffs can be substantial and long-term. The strategic
imperative, however, is to develop strategies that fit the
particular country circumstances. |
|---|