Financial sector development in developing countries and emerging markets

Emerging markets

Emerging markets are nations with social or business activity in the process of rapid growth and industrialization. Based on data from 2006, there are around 28 emerging markets in the world . The economies of China and India are considered to be the largest...

 is part of the private sector development

Private sector development

Private Sector Development is a strategy for promoting economic growth and reducing poverty in developing countries by building private enterprises, membership organizations representing them, and competitive markets that are stronger and more inclusive....

 strategy to stimulate economic growth

Economic growth

In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...

 and reduce poverty.

A solid and well-functioning financial sector is a powerful engine behind economic growth. It generates local savings, which in turn lead to productive investments in local business. Furthermore, effective banks can channel international streams of private remittances

Remittances

A remittance is a transfer of money by a foreign worker to his or her home country. Note that in 19th century usage a remittance man was someone exiled overseas and sent an allowance on condition that he not return home....

. The financial sector therefore provides the rudiments for income-growth and job creation.

External links

• FIRST
• Netherlands Financial Sector Development Exchange (NFX) NFX operations were discontinued in April 2007.
• Consultative Group to Assist the Poor
• Ten-Year Framework and Strategies for Development of Islamic Financial Services