South-South Investment : Creating opportunity in East Asia and the Pacific


The collection of stories in this booklet shows in practical terms how IFC-supported cross-border knowledge-sharing and business-transfer opens up opportunities in East Asia and the Pacific.

Message from the DIRECTOR

Investment flows from emerging markets into other emerging markets – often referred to as South-South investments – have become a key source of financing for developing countries, as well as a means to transfer standards, knowledge, and successful business models.
These trade and financial flows also support increased regional integration, something that is particularly important in Asia Pacific with the formation of the ASEAN Economic Community this year.
Studies have shown that Southern foreign direct investment typically reaches very poor and remote developing countries. Because Southern companies use innovative business models developed in one emerging market and replicate them in the recipient Southern country, these business models and technologies are often more attuned to the needs and conditions in developing countries. They can be more flexible and adopted faster than investments from developed markets.
South-South investments can also increase bilateral and regional trade with the potential
to generate more jobs and bring down the cost of goods and services, making them more
affordable for the poor.
With its track record, global presence, and client base, IFC is well-positioned to be the partner of choice for sustainable South-South partnerships.
We provide equity or loan financing for such projects and advise both companies and
governments on how to create the conditions under which the cross-border transfer of goods, funds, and knowledge flourishes.


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