Countries with strong balance sheets experience greater financial health. Empirical evidence shows that countries that rely heavily on balance sheets experience shorter and lower recessions than those with weaker balance sheets.

The Emerging Markets Investors Alliance held an event to highlight the important role of balance sheets in government financial management in which the speakers highlighted three ways the Public Sector Balance Sheet (PSBS) approach could enhance fiscal policy:

(1) promoting transparency of public and non-debt liabilities, 

(2) improving risk management and, 

(3) aiding in fiscal policymaking by providing a more systematic evaluation of their impact.

Discussions also covered the limitations of PSBS, as well as actionable items so investors can support the public sector balance sheet initiative.

The International Budget Partnership (IBP) focuses on issues of transparency, oversight, and public engagement in government finances and emerging markets.  Their mission is to create a demand for government fiscal transparency, as well as advocate for fiscal policy change. On September 17, 2018, the Emerging Markets Investors Alliance hosted Jason Lakin, Head of Research at IBP, to provide a detailed explanation of their Open Budget Survey. Jason explained the survey’s principles and procedures, reviewing findings from a recent application of the survey. Toward the culmination of the event, Jason opens the floor up to receive feedback on how to adapt the survey to be more useful and relevant for investors

South Africa was one of the first developing countries to move from a closed system to an open one. Over the past few years, even as the rest of the world became less transparent, South Africa has excelled in incorporating transparency, setting the bar high for others. South Africa acts as a model, demonstrating if emerging markets can establish smart treasury use early on, it can reinforce good governance in times of transition and difficulty.

The Emerging Markets Investors Alliance hosted a roundtable with policymakers and investors to examine challenges facing South Africa. Discussions focused on recommendations to improve budget accountability; such as improving accounting and availability of subnational data, as well as strengthening and deepening civic participation in the formal budget process.

The Emerging Market Investors Alliance believes the quality of a government’s fiscal transparency is foundational to the quality of its governance. Accountability and clarity in emerging markets help build public trust, create value for investors, and allows credit rating agencies to accurately assess governments' creditworthiness. To discuss the benefits of fiscal disclosure, on April 4, 2018, the EMIA hosted part two of their series of roundtables on fiscal transparency. This roundtable’s objectives were to explore how credit rating agencies could adopt fiscal transparency as a rating factor, and gain a better understanding of how international financial institutions and civil society organizations assess fiscal transparency. At this roundtable they also investigated how institutional investors assess fiscal transparency in their investment decisions, determining what improvements in fiscal transparency they would like to see from rating agencies, governments, international financial institutions, and civil society organizations. Discussions covered these various areas, as well as actionable items to lead to effective reforms.

The Alliance welcomed Peter Kim to lead an investor call on corporate governance policies in South Korea. Kim, a managing director and investment strategist at Mirae Asset Daewoo, described how corporate governance policies designed to stimulate economic growth in the 1970s and 80s have created an unfair playing field in South Korea’s economy, allowing wealthy families to gain and expand their control of the country’s largest, most profitable companies at the expense of South Korean workers and international investors. Kim outlined several new policies the South Korean government is embracing in an effort to strengthen corporate governance practice and increase the influence of workers and investors in the economy.

On November 29th 2017, the EMIA welcomed Peter Kim to host a discussion on corporate governance in China. Peter, who is a managing director and investment strategist at Mirae Asset Daewoo, discusses the role corporate governance policies play in China’s unique economy, describing its challenges and identifying potential risks and opportunities for investors in the Chinese market.

The Emerging Market Investors Alliance’s roundtables on Fiscal Transparency have two goals: to promote a greater understanding of fiscal transparency's relation to debt ratings and investment decisions of emerging market governments. In addition, examining how refinements in rating methodologies and data can affect factors in credit rating assessments. To examine fiscal transparency in-depth, on September 21, 2017, the EMIA hosted part one of their series of roundtables on fiscal transparency. Discussions covered topics related to the ideal aspects of fiscal transparency methodology, how credit rating agencies should provide investors with clearer statements about fiscal transparency issues, and how producers of budget transparency evaluations can begin a discussion on developing data that focuses more closely on the needs of the credit rating agencies.

Financial Transparency in the Oil and Mining Sectors is an issue brief published by the Alliance that aims to inform investors of the issues surrounding fiscal transparency in the oil and mining sectors. The objective of this brief is to provide emerging market investors with an overview of the benefits associated with the disclosure of payment information from natural resource companies and host governments. The brief discusses the risks associated with inadequacies in financial reporting, actionable recommendations for investors, and transparency information on major extractive industry countries.

Investors still express skepticism despite ESG investing’s successful implementation over recent years. Although various ESG indexes have performed well since the global financial crisis, investors doubt its benefits in relation to more traditional factors. ESG Data for Emerging Market Investors: Where’s the Value? is an issue brief published by the Emerging Markets Investors Alliance that aims to inform investors about the issues surrounding ESG investing and data despite its value. The objective of this brief is to provide emerging market investors with an overview of ESG integration into financial analysis and its contribution to investment performance. This brief examines the history of ESG data, research evidence, and investment approaches.

Access to a water supply is essential to all aspects of mining operations. Due to environmental ailments causing decreased access to water supplies regulations are a necessity. Disclosure and asses of water-related data and management plans are crucial for mining operations to persist. Water Risks Threatening the Mining Industry is an issue brief published by the Emerging Markets Investors Alliance that aims to inform investors on how water risks are creating obstacles in the mining industry. The objective of this brief is to provide emerging market investors with an overview of the increasing water-related risks faced by the mining industry. This brief discusses the history of water use in mining operations, actionable recommendations for investors, and the World Resources Institute’s Water Risk Framework for the Mining Sector.

Financial crises have continually illustrated the powerful relationship between governmental shortcomings in financial reporting and fiscal risks. Fiscal openness and accountability are associated with a wide range of positive outcomes. The Emerging Markets Investors Alliance has created an issue brief on fiscal transparency. The objective of this brief is to provide emerging market investors with an overview of the benefits associated with fiscal openness. This brief examines the history of fiscal transparency, actionable recommendations for investors, and the International Budget Partnership’s Open Budget Index Rankings.