Arunma Oteh
We live in extraordinary times. In less than thirty years, between 1990 and 2008, more than a billion people rose out of poverty, driven largely by robust economic growth in East Asia, the Pacific, and South Asia. But since 2013, progress has stalled amid multiple overlapping crises: the devastating impact of COVID-19, sluggish economic growth, rising debt burdens, conflicts, instability, and severe climate-related disasters. In a worrisome reversal of fortunes, many of those who once escaped poverty now face the real possibility of slipping back. Furthermore, an estimated one in ten people globally live in extreme poverty—deprived not only of sufficient income but also of opportunities, dignity, and hope. Nearly half of the world’s population lives on less than what a cup of cappuccino costs in New York, and climate change could push an additional 132 million people into poverty by 2030. Poverty is no longer a peripheral issue; it is the defining risk multiplier of our age, fueling instability, migration pressures and lost human potential.
“As financial literacy spreads, a dollar that once idled in a low-yield account or hid under a mattress can finance a solar mini-grid; a pension fund that once shunned frontier markets can support underwriting a network of rural health clinics.”
Solutions are becoming more and more daunting. Despite ongoing efforts, there is a US$4.3 trillion annual funding shortfall to actualize the lofty objectives of the Sustainable Development Goals (SDGs). I believe that capital markets stand uniquely positioned to mobilize these trillions of dollars urgently needed for transformative solutions. That is because capital markets are gargantuan and versatile. At the end of 2023, global capital markets held over US$255 trillion in value across equity and fixed income instruments, eclipsing the US$106 trillion of the world’s combined gross domestic product (GDP), and the notional value of over-the-counter derivatives holds another US$730 trillion of risk-transfer capacity. Whether it is helping a rose farmer in rural Kenya access affordable microcredit through mobile platforms connected to global capital markets or giving a young professional in Canada the opportunity to invest easily in green bonds that fund renewable energy projects thousands of miles away, capital markets are among the most powerful tools we have for tackling the major challenges of the twenty-first century. To harness this immense potential, we must embrace an “all hands on deck” approach to leadership, helping developing countries to build their own deep, resilient, and world-class capital markets capable of financing their ambitious SDG targets.
Across the globe, we see examples of regulators and policymakers adopting collaborative, forward-looking approaches to ensure financial markets operate fairly, transparently, and inclusively. In the United States, the Securities and Exchange Commission (SEC) is working with the media and market participants to tighten insider trading rules and to level the playing field for all investors through rigorous enforcement. The EU’s Markets in Financial Instruments Directive II (MiFID II) rallied public support for reforms to enhance market transparency through clearer reporting regimes. Meanwhile, in Africa, countries are establishing regulatory sandboxes to foster innovation by allowing fintechs to test inclusive financial solutions in partnership with regulators.
“Those market operators now leading the charge in championing Environmental, Social and Governance (ESG) investments illustrate the market’s potential to redirect capital toward societal good, as an integral part of their fiduciary responsibility.”
Intriguingly, effective leadership in capital markets is not limited to the government. Financial institutions—who act as trusted intermediaries—show leadership when they help guide funds toward sustainable, impactful investments. The 2008 global financial crisis starkly demonstrated the consequences when institutions lose sight of their ethical obligations. Those market operators now leading the charge in championing Environmental, Social and Governance (ESG) investments illustrate the market’s potential to redirect capital toward societal good, as an integral part of their fiduciary responsibility. They help galvanize corporations to commit to long-term value creation, embed sustainability and innovation into their core business strategies and show that they can continue to catalyze broader social change while delivering robust financial performance.
To ensure these efforts are even more broad-based, financial literacy is crucial, enabling masses of individuals across the Global North and South to participate more meaningfully in the financial ecosystem. Because we know that high financial literacy scores correlate strongly with greater resilience and wellbeing, there would surely be immense value in leveraging social media platforms such as TikTok, Instagram, and other innovative multimedia content to significantly boost financial education, especially among young people. If we can develop algorithms that make intricate dance moves go viral on TikTok or make complex narratives captivate millions in movies, surely we can harness these same creative channels to make the essentials of saving, investing, and financial risk engaging and accessible to all. Some of the initiatives I championed during our reforms of the Nigerian capital markets from 2010 to 2015 show the powerful impact financial literacy can have on economic resilience and individual prosperity. These include a catch-them-young national program that got many students interested in a finance career and collaborations with Nigeria’s vibrant Nollywood—beloved around the world—to produce films about the value in saving and investing wisely.
One of my foremost goals is to discover new methods of sparking a genuine curiosity in young people about money and their relationship with it. Perhaps some of them may even pursue careers within capital markets, channeling their brilliant minds toward financing solutions to tomorrow’s global challenges, such as designing the carbon-pricing options of the 2030s. If capital markets are to truly serve everyone, then everyone must possess at least a fundamental understanding of how they work. I often wonder why this is not a core component of education globally. What role can business schools play in this regard? How are they shaping visionary leaders who deeply understand capital markets as powerful tools for global good? I must admit, even as someone who benefited from one of the most prestigious MBA programs in the world, I see a lot of room for improvement in how business schools and universities—which are the crucibles of future leadership—can deepen their curricula involving more material about capital markets, their rigor, ethics, sustainability, and innovation. By doing so, we will equip future leaders to better appreciate the potential for transformative global impact that capital markets hold.
“Those market operators now leading the charge in championing Environmental, Social and Governance (ESG) investments illustrate the market’s potential to redirect capital toward societal good, as an integral part of their fiduciary responsibility.”
Indeed, financial education presents us with the greatest opportunity to have all hands on deck where everyone has a role to play, whether you steer a sovereign-wealth fund, teach an MBA class or shoot comedy skits on Threads. I want to see TikTok creators who explain inflation or another financial concept in 60 seconds routinely go viral as we put bite-sized edutainment to work. Or imagine a Netflix docudrama on the first green sukuk or a mobile game that rewards players for allocating a virtual pension fund across micro-enterprise loans. What stops media outlets and educators from co-producing such content at scale, while regulators embed investor-education nudges into every digital account-opening flow?
I see financial literacy as the ignition key that can enable every household, business, and nation to turn idle savings into productive capital to fight poverty and boost economic growth. When students learn compound interest before calculus, when farmers understand crop-insurance hedges, and when gig-workers grasp the power of diversified ETFs, the investor base widens and deepens. That breadth can lower capital-raising costs, sharpen market signals and reward issuers who deliver genuine poverty-reducing impact. But scaling financial literacy cannot fall to teachers or schools alone. It demands an all-hands chorus—regulators embedding plain-language disclosures, fintechs gamifying tutorials inside apps, media turning budget lessons into binge-worthy content, and business schools measuring graduates not just by salary boosts but by communities lifted.
As financial literacy spreads, a dollar that once idled in a low-yield account or hid under a mattress can finance a solar mini-grid; a pension fund that once shunned frontier markets can support underwriting a network of rural health clinics. With every newly informed saver and every transparently priced security, the friction between capital and need shrinks. This is the defining fight by which, I believe, our generation will be judged. We must rise to the challenge and marshal all hands on deck required to consign extreme poverty to the history books and unleash prosperity for all.
“If capital markets are to truly serve everyone, then everyone must possess at least a fundamental understanding of how they work.”
Biography
Arunma Oteh is a highly accomplished leader and expert in global capital markets with 40 years of experience in finance, governance, and international development. A former Treasurer of the World Bank, she has also served as Director General of Nigeria’s Securities and Exchange Commission, driving crucial capital market development initiatives and reforms post-global financial crisis. Currently, Arunma is an academic at Oxford University’s Saïd Business School.
