ESG Implementation in Emerging & Frontier Markets: Lessons Cultivated from Sri Lanka and Beyond

Authors

Ahmed Qaisi, Jones Day

Document Type

Notes and Comments

Abstract

Crippling debt accrued within emerging and frontier market nations forces developing governments to enact policies contrary to the well-being of their overall economies. The influence of credit rating agencies as well as organizations like the World Bank and the International Monetary Fund (“IMF”) have handcuffed governments into implementing Environmental, Social, and Governance (“ESG”) policies that are unrealistic and unfeasible and have therefore caused detrimental societal impacts. This note examines how the application of ESG policies and governmental corruption resulted in Sri Lanka’s devastating economic collapse. Also scrutinized are those countries which have taken on debt but have managed well throughout slowing economic growth. At bottom, this note recommends that emerging and frontier markets move with caution when implementing ESG policies while credit rating agencies apply leniency when assessing sustainability measures. Moving beyond the top-down approach of the IMF and World Bank enables stable growth, which will benefit developing and developed economies alike.

Recommended Citation

Ahmed Qaisi, ESG Implementation in Emerging & Frontier Markets: Lessons Cultivated from Sri Lanka and Beyond, 32 U. MIA Bus. L. Rev. 409 (2024)
Available at: https://repository.law.miami.edu/umblr/vol32/iss3/8