The ESG Framework Hurts Developing Countries

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The ESG framework is a progressive agenda that harms market prospects for both companies and national economies. Yet, it has managed to gain widespread traction. The number of ESG exchange-traded funds (ETFs) went from $12 billion in 2006 to $1,826 billion in 2023, an increase of over 15,000 percent! This result emanates from the perverse incentives of big companies in rich countries to toe the ideological line of the governments with which they collude.

In his latest article, Nicholas Virzi explains why the ESG framework harms developing countries. It pressures developing country governments to apply untested theories that they did not themselves consider, much less follow, in their developmental paths.

This is the third in a series of Impunity Observer articles that expose the problems associated with applying the ESG framework to developing countries.

Part One: https://impunityobserver.com/2024/07/10/how-esg-politicizes-country-risk-evaluations/
Part Two: https://impunityobserver.com/2024/07/22/guatemala-pays-unjustified-esg-penalty/
Part Three: https://impunityobserver.com/2024/09/12/the-esg-framework-hurts-developing-countries/