Emerging market borrowers have come through the summer storms battered but unbowed. This description could also apply to staff at the World Bank after the turmoil surrounding the forced departure of former president Paul Wolfowitz. Incoming World Bank head Robert Zoellick faces a difficult task in restoring morale among staff at the supranational agency, while not giving ground on the need to tackle corruption in its client countries. Zoellick also has to continue the work of reshaping the way the World Bank pursues its goal of alleviating...Read more
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Robert Zoellick took over as president of the World Bank at the end of June after controversial US politician Paul Wolfowitz was forced out of the role. Zoellick is a far more skilled diplomat than Wolfowitz and has a better understanding of modern finance, but he faces significant challenges in enacting change at an institution where anti-American sentiment has grown. Jon Macaskill reports.
The world’s emerging markets are enjoying near-boom conditions, despite the turmoil spreading out from the sub-prime mortgage crisis in the US. Emerging markets have lower vulnerability to external shocks than ever before, writes Simon Knapp, senior economist at Oxford Economics.
The Inter-American Development Bank has made great strides in repositioning itself as an important player in what is an increasingly complex financial market. The multilateral has moved away from the old notion that development can be spurred only by direct investment, and is now active in a broad range of activities. Christopher Langner reports.
The Asian Development Bank held its 40th annual general meeting in May soon after a report cautioned that it must change radically or risk irrelevance as poverty in Asia is set to shrink over the next 15 years. Despite this warning however, it seems to be business as usual at the bank, writes Jonathan Rogers.
The World Bank should be able to combine weather insurance and risk management products to complement its aid solutions. But pilot projects for the bank’s push into encouraging weather risk management when working with governments on assistance packages to developing countries have had mixed results. Jean Haggerty reports.
The search for new markets is constant for investors seeking out ever greater potential returns. The established markets of Russia and Eastern Europe are not providing the opportunities experienced equity investors are seeking, but early indications from Nigeria and Kenya suggest sub-Saharan Africa could offer the desired risk/reward balance, writes Owen Wild.
As the major credit markets find themselves pinched by the tightest credit squeeze for many years, investors are looking for points on the globe where the pressure is lower. Africa has one of the world's youngest populations, is rich in natural resources and needs to stoke economic growth. Could lending to African companies be an attractive source of returns? Ouida Taafe reports.
The fact that the African Development Bank meeting took place in Shanghai demonstrates that Sino-African ties are becoming ever more important. As trade rises and aid deals are exchanged for natural resources, will China’s rising influence affect the efforts of multilateral agencies on the continent? Rob Davies reports.
Despite sub prime fears casting doubts over the future of European and US securitisations, the asset class in EEMEA and Latin America has so far proved resilient. Supported by strong appetite among local investors and a growing pool of assets to package, these EM markets remain poised for further growth. Anna Borrett and Christopher Langner report.
Emerging markets held up relatively well during this summer's sell-off, proving to some that a true paradigm shift has occurred and economies are now better prepared to withstand external shocks. With the Fed’s aggressive 50bp cut in September, there is even talk of an EM bubble on the horizon. But not all countries are out of the woods yet, writes Paul Kilby reports.
With many Latin American countries paying down IMF debt to free themselves of the conditionality imposed by that institution, Venezuela has been moving in to fill the void as it uses it oil wealth to advance its foreign policy goals. But is President Hugo Chavez’s spending spree sustainable and would he be willing to act as a lender of last resort? Paul Kilby reports.
Growing interest from high grade and cross-over investors in the EEMEA space, particularly for Russian quasi-sovereigns, is an ongoing process that will underpin demand for the better regarded names when the primary market reopens. John Weavers reports.
Turkey’s parliamentary and presidential elections have been and gone without causing much market distress as investors take comfort from the continuation of the ruling AK party’s reform programme. This should help ensure the Treasury's 2007 financing needs are easily met, writes John Weavers.
Banking has long dominated CIS issuance, making up over three quarters of all deals in the region so far this year. However, investor appetite is waning, especially in the oversupplied Kazakh space, even though the prospect of merger and takeovers does provide some speculative support to the sector. John Weavers reports.
Argentina was hit hard during the recent bout of volatility as investors with sizable positions sold liquid names. Corruption, manipulation of economic data and heavy near-term amortisations were all concerns. But the more market-friendly Cristina Kirchner could help the country regain credibility internationally when – as seems likely – she replaces her husband as president in October. Anthony Dovkants reports.
Brazil has come along way in recent years but there is still so much more to do. The nation is hurtling toward investment grade ratings possibly before the end of 2007. But the government still faces several stumbling blocks, including weak local debt markets, inefficient taxation, poor regulations and vast energy needs. Anthony Dovkants reports.