HOW DO PRIVATE CAPITAL FLOWS ASSIST COMPANIES IN DEVELOPING COUNTRIES?
1. GLOBAL TRENDS IN PRIVATE AND OFFICIAL FLOWS
1.1 Capital flows can be divided into official and private flows. Official flows are multilateral funds from IMF, ADB, etc and bilateral funds which flow between governments. Private capital flows can be categorized into the following;
• Private loans to include bank loans and bond finance.
• Portfolio equity flows.
• Foreign direct investment.
• Private transfers which also include unrequited transfers.
Table 1: Official Net Resource Flows to Developing Countries, 1999-2004 (US$m)
Region 1999 2000 2001 2002 2003 2004
East Asia & Pacific 13,175 8,274 7,880 -2,916 -4,502 -5,132
Europe & Central Asia 10,743 9,298 3,200 6,529 4,416 7,163
Latin America & Caribbean 5,375 2,070 8,031 3,868 2,369 -2,469
Middle East & North Africa 187 513 1,164 175 1,649 1,745
South Asia 4,865 2,875 4,984 47 2,219 6,114
Sub-Saharan Africa 10,285 ...