In view of these issues, this paper proposes an optimal approach to design and regulation of commodity contingent instruments for private enterprises. The design of these instruments is likely to significantly alleviate the capital constraints in emerging markets, particularly in Eurasia. A commodity contingent security usually consists of a combination of a traditional debt security (a bond) and several units of a financial instrument, the payoff of which is in some well-defined way linked to the price of a traded commodity. Although commodity contingent securitization can, in theory, be applied at both the national and the private level, the proposals in this paper are directed mainly toward private sector funding. Government plays an important and complementary role in determining the success of these instruments. Government should provide tax subsidies to external sources of private sector capital, design a regulatory framework that preserves the integrity and professional reputation of these infant markets, and, more generally, foster a social consensus for entrepreneurship and growth.