1887

Promoting Private Capital Flows and Handling Volatility

Role of National and International Policies

image of Promoting Private Capital Flows and Handling Volatility

Report of a Commonwealth Working Group that considers the role of national and international policies in encouraging private capital flows for investment. The Working Group concluded that, in general, private capital flows can bring notable benefits for economic development by increasing growth and investment.

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Foreword

Since the mid-1980s there has been a marked increase in international private capital flows with the growth of international trade and the increasing economic integration of business activity. Developing countries as a whole have witnessed significant increases in both portfolio flows and foreign investment. The bulk of these private flows, however, has been concentrated in a handful of developing economies, including several Commonwealth members, while the rest have yet to receive significant private capital inflows.

English

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