External private resources

There is a growing pool of private international capital from which countries in the ESCAP region can mobilize resources for their development, diversify risks and stabilize their macroeconomic performance. Besides adding to the financial resources available, there are indirect benefits of foreign resource inflows that include enhanced knowledge, spill-over effects, improved resource allocation, and strengthened domestic financial markets. There are basically two types of external resources: foreign direct investment and other forms of external private capital inflows (bank loans, international securities issues and foreign participation in local capital markets). These two types are inherently different as FDI involves participation by foreigners in actual productive activities whereas private capital inflows take a purely financial form. Therefore, they are discussed separately below.

Sustainable Development Goals:

Decent Work and Economic Growth

Reduced Inequalities