The 1990s witnessed a large swing in global private capital flows (Figure 1.1). Net private flows to developing countries, for example, grew from less than $100 billion in 1990 to well over $200 billion in 1995. The subsequent years, however, saw an equally substantial reversal of these inflows, which caused several emerging market economies to experience severe capital account crises. The volume of private capital flows to developing countries remained subdued through the early 2000s.