A new World Bank report says 2005 was a landmark year in global development finance.
The Global Development Finance 2006 report says net private capital flows to developing countries reached a record high of US$491 billion in 2005.
And significantly, the report shows capital flows between developing countries (the so-called south-south flows) are now growing more rapidly than those between developed and developing countries (north-south flows) particularly in foreign direct investment.
Mansoor Dailami, lead author of the 2006 Global Development Finance report says the flows between developing countries do have the potential to change the face of development finance – particularly if growth in developing countries continues to outpace that of developed countries.
Dailami says in terms of size, the amounts of the flows between developing countries are still small, but they do reflect those countries’ growing size and power.
“For instance, the foreign direct investment flows from developing countries to other developing countries we estimate is in the order of $47 billion”, he says. “The total amount of cross border bank lending is about $6 billion – which is relatively very small compared to the capital we see going from the rich countries to the developing countries.”
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20935894~pagePK:64257043~piPK:437376~theSitePK:4607,00.html
The Global Development Finance 2006 report says net private capital flows to developing countries reached a record high of US$491 billion in 2005.
And significantly, the report shows capital flows between developing countries (the so-called south-south flows) are now growing more rapidly than those between developed and developing countries (north-south flows) particularly in foreign direct investment.
Mansoor Dailami, lead author of the 2006 Global Development Finance report says the flows between developing countries do have the potential to change the face of development finance – particularly if growth in developing countries continues to outpace that of developed countries.
Dailami says in terms of size, the amounts of the flows between developing countries are still small, but they do reflect those countries’ growing size and power.
“For instance, the foreign direct investment flows from developing countries to other developing countries we estimate is in the order of $47 billion”, he says. “The total amount of cross border bank lending is about $6 billion – which is relatively very small compared to the capital we see going from the rich countries to the developing countries.”
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20935894~pagePK:64257043~piPK:437376~theSitePK:4607,00.html