Freedom is key for growth and sustainability: EM debt investors should pay attention

Link between freedom and growth

clock • 4 min read

Economic and political freedoms and the rule of law are important precursors for the economic development, growth, education and sustainability of sovereign countries.

As such, there is an incentive for investors in emerging market debt to undertake active due diligence on these wider social themes. By actively following a country's pursuit and execution of fair and free elections, civil liberties, functioning of government, and the importance it places on economic freedom in real-time - in both its rhetoric and its enforcement of these principles - it is possible to better identify sovereign risks and opportunities. ESG investing in emerging markets faces major hurdles despite vital importance The challenge of course is that some of this data is...

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