Guaranteeing Development The Impact of Financial Guarantees This volume tests the relevance and usefulness of guarantees to public and private actors in developing countries especially for funding development projects. Not to be confused with export credit guarantees usually accorded to nationals with the aim of stimulating exports and overseas investment development guarantees are destined for actors in emerging or developing economies where risk is a deterrent to lending or investment. The presence of guarantees from multilateral or bilateral agencies can encourage financial flows either to increase or to go where they otherwise might not. In this way they can have a positive effect on sovereign ratings as well as their immediate direct effect on the local development environment. As a bonus this study finds development guarantees can help stimulate and stabilise local capital markets thus providing future benefits for both public and private investors. “A timely book throwing urgently needed light on this little understood topic which could be a vital key to economic progress in developing countries. With my deep congratulations to the author.” Michel Camdessus Honorary Governor of the Banque de France formerly Managing Director of the International Monetary Fund)