ROBUST GLOBAL GROWTH AND A favorable financing environment provided the context for a record expansion of private capital flows to developing countries in 2005. These conditions now provide a unique opportunity for the international policy community to place development finance on a firmer footing before tightening of global liquidity closes the window of opportunity. Most of the record $491 billion in net private capital bound for the developing world in 2005 went to a small group of middle-income countries. Many of those countries took advantage of the growing inflows to improve their external debt profiles and accumulate large holdings of official foreign exchange reserves. By contrast, many low-income countries still have little or no access to international private capital, and instead depend largely on official finance from bilateral and multilateral cred...
Related BooksYou May Also Like
View All
0 Comments