Stress need for good government: sound economic policies; commercial,
legal and financial structures which encourage individual enterprise and respect
individual rights; efficient and honest public institutions.
Net resource transfers
8.
Figures showing net transfer of resources from developing countries in
the aggregate must be treated with caution. The World Bank's World Debt Tables
for 1990-91 show that, taking into account all new loans, grant aid and direct
investment, inflovs to developing countries exceeded out flows by scae
$9.3 billion in 1990. These are aggregate figures which obscure the differences between developing countries. For the poorest countries, inflow exceed outflows very substantially: according to OECD figures the low income countries received
in 1989 $24 billion more than they paid out.
9.
Important to distinguish between financial transfers to developing
countries and resource transfers. Positive net financial transfers are not
per se desirable: that depends on the terms. For debtors to receive new market loans greater than interest payments on old debt will increase debt stock.
direct investment and debt
rate
Bence importance of concessional loans and grants,
reduction in meeting external financing needs.
(
Background
10.
In
source of
Total Det resource flows: OECD (DAC) figures, on which we base our
analysis, are at Annex ▲. 1989 is the latest available year for this data. recent years od a has replaced private flows
flows as the principal development finance. In 1981 private flows constituted 54.1 per cent of total
zet disbursements to developing countries, in 1989 only 37.3 per ceat. Sustainable development will depend on some recovery in this figure, vhich in turn will largely depend on policies pursued by developing countries.
11.
DAC figures for net resource flows are net of capital repayments but not interest payments. Many developing countries cite net flow figures which deduct interest payments. These are counted in DAC analysis as financial reflows as distinct from net resource transfers. If interest payments are included BLOY
developing countries, particularly in Latin America, suffer a net financial
Sub-Saharan Africa enjoys a net
inflow on the basis of increasing
out flor.
levels of oda.
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(