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Abstract
The promotion of private investment is being widely discussed at present by officials and intellectuals in most countries, developed and developing, irrespective of their political ideologies or economic philosophies. Developing countries in particular have come to realize that prospects for increased external grants and loans are dim and that funding investment through domestic borrowing, with its adverse effects on the rate of inflation, cannot be sustained indefinitely. Furthermore, governments have learned from experience that expansion and tight control of the public sector require the adoption of policies to protect that sector from competition and funds to meet the mounting budget deficits caused by its losses and subsidization. Such protection further impairs the public sector’s ability to compete internationally and reduces the prospects for increased exports. The call for the promotion of private investment has emerged as a practical response to these growing concerns.
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