The market turbulence witnessed since August 2007 has highlighted the importance of having good communication between market participants and authorities. The global environment for emerging markets has changed at a rapid speed as both new trends and new strains have emerged. Supported by stronger fundamentals, including strong macroeconomic policies and more sophisticated debt management practices, a number of emerging markets have been fairly well insulated from the recent market turmoil.
A growing number of sovereigns recognize the importance of active investor relations and adequate data dissemination practices in light of the increased role played by private capital flows in today’s environment for emerging markets. Furthermore, a reemergence of market strains in recent months fueled by a heightened level of uncertainty further underscores the value of active investor relations programs.
This report is the second update of the practices analyzed in the 2005 Investor Relations: An Approach to Effective Communication and Enhanced Transparency that provides detailed analysis of investor relations and data transparency practices by the most active emerging market borrowing countries. By reporting advances in sovereign investor relations practices, the document aims to help authorities identify those aspects of their investor relations and data transparency practices that could benefit from strengthening. It offers investors a comprehensive comparative evaluation of communication and data dissemination practices for the countries that were assessed. The IIF’s investor relations and data practice assessments support broader initiatives on crisis prevention and crisis resolution, most notably the Principles for Stable Capital Flows and Fair Debt Restructuring in Emerging Markets.