Financing the real economy

A redesign of development strategies involves structural change as well as an expansion of productive capacities and their adaptation to new demand patterns, all of which require financing. The availability and conditions of such financing have evolved significantly over the past few decades. In addition, the recent economic and financial crisis presents new challenges for the financial sector and its capacity to provide long-term credit for investment. This chapter analyses the challenges and options currently available to developing and emerging market economies to finance their development.

Related Subject(s): International Trade and Finance