Local Capital Markets
Local Capital Markets
Explores the financial, regional, cultural, and foreign-investment variables affecting conditions in local capital markets within emerging markets, and their links to the global markets. Activities in the Local Capital Markets program include:
“Local Capital Markets: Emerging Market Investment Opportunities”
Dr. Kalter is a CEME Senior Fellow and President, EM Strategies Inc.
Dr. Eliot Kalter introduced his remarks by providing the audience with an overview of his professional background at the International Monetary Fund (IMF), where he advised countries on local capital market development. He expressed a great interest in continuing this work and, in particular, what he feels is a little explored aspect of that work: private sector access to emerging market local capital markets. While a great amount of effort to date has been spent on deepening local capital markets for the public sector (which is a logical first step since it creates the ability to issue bonds with longer maturity and creates benchmarks that can then be used by the private sector), private sector access to those same markets is at its infancy. Dr. Kalter stated that, realistically, it will be another ten years before the private sector has broad access to local capital markets in many emerging markets. He views the issue as one of public policy: to have social stability, a deep middle class is needed; to have a deep middle class, it is necessary to have capital markets that can be accessed by small and medium sized businesses.
Dr. Kalter’s presentation focused on five aspects of emerging markets local capital markets investment: (1) emerging markets becoming center stage; (2) the global financial environment; (3) underpinnings for sustained success; (4) implications for local capital markets; and (5) emerging market investment opportunities.