1945

Recent trends in external finance and debt

As regards all developing countries, the first half of the 1990s has been characterized by an upsurge in capital inflows and by a change in the composition of these flows, with the net flow of official development finance decreasing in relative importance. While the resource flow was earlier dominated by official flows and commercial bank lending to public-sector borrowers, the recent increase has largely taken the form of private direct investment and portfolio flows to private-sector borrowers. At the same time as LDCs have been affected by the stagnation in official development assistance (ODA), they have captured little of the increase in private flows.

Related Subject(s): Economic and Social Development
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