Many market participants estimate that emerging markets (EMs) require trillions of dollars in order to invest in infrastructure and transform their economies. This cannot be financed by multilateral development banks (MDBs) and development financial institutions (DFIs) alone. Private institutional capital is required to achieve the scale necessary to overcome global and local challenges, according to a recent research report released by ARC Ratings entitled Funding Vital Emerging and Developing Market Projects: How GEMs and Private Markets Can Help Achieve Scale.
Private institutional capital is constrained by factors such as the lack of reliable and consistent data. MDBs, with their rich experience in EMs, are in the position to alleviate certain data issues.
Granular historical default and recovery data across the countries and sectors, experienced and recorded by MDBs, is a key component for ARC Ratings and other market participants to produce robust assum
