Reforming the international financial architecture

Ensuring that developing countries are able to increase their rate of investment is as big a challenge today as it was in the early days of development thinking. During the 1980s and 1990s, structural adjustment programmes coupled with the liberalization of private capital flows had been expected to increase the rate of investment in developing countries. Instead, the rate of fixed investment stagnated in most parts of the world, despite a significantly higher level of international financial flows (see figure V.1). Meeting sustainable development objectives will require an investment regime that can underpin private risk-taking with sufficient stability.

Sustainable Development Goals:

Decent Work and Economic Growth