Impact Investing In Developing Countries: Legal Institutions and Work-Arounds

What legal institutions are important to the success of businesses serving the world’s poorest people, and what are feasible work-arounds when those institutions are absent? An increasing number of business enterprises in developing countries, including India and much of Africa, seek to provide health, sanitation, housing, savings, insurance, and other essential services to the very poor. But many of them operate in countries that lack stable property rights, independent judiciaries, and other elements of the “rule of law” that investors and entrepreneurs take for granted in more developed countries.

We will study how entrepreneurs operate and attract investors in these situations. The first phase of the project will involve in-depth interviews with and data gathering from foundations, funds, and other institutional investors who have a sophisticated knowledge of the conditions that conduce to the success of their investee enterprises and a return on their investments. Our client will likely be a foundation or other organization making impact investments in developing countries.

GSB, Political Science, and Economics students as well as Law students are welcome to participate.

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Clients & Deliverables

Client: A foundation making impact investments in developing countries

Deliverable:

Impact Investing In Developing Countries: Legal Institutions and Work-Arounds 1

Impact Investing in Developing Countries: Legal Institutions and Work-Arounds