Overall gross resource flows to developing countries have surged in the 1990s—from some $100 billion in 1990 to over $250 billion in 1996.1 Within the total, there has been a pronounced shift in the composition of net resource flows: the growth reflected almost entirely flows from private sources to emerging markets and other strong performers in Asia and Latin America and to reforming transition economies in Eastern Europe. Private flows consist largely of foreign direct investment (about half of the total), portfolio equity flows, bank credit, and bond lending, with considerable variability from year to year. While private lending in the second half of the 1980s went mainly to public entities or carried a guarantee from the debtor government, private sector entities in developing countries were able to attract some 40 percent of gross private lending in 1996 without requiring government guarantees. Indications are that, as in the past, private flows in 1996 continued to be concentrated in a relatively small number of developing countries. In real terms, private flows are estimated to be higher now than at their previous peak in 1981. In contrast, official flows (for a definition, see Box 1) have changed relatively little in nominal terms in the 1990s. Sources in the Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development (OECD) estimate annual net flows of official development finance (ODF) at some $70 billion over the period, not including trade-promoting export credits. However, in real terms, official flows have declined by nearly 17 percent since the second half of the 1980s.
Official bilateral financing remains an important source of finance for developing countries, particularly countries with limited access to international capital markets. Analysis of the flows must take into account systematic differences in the statistics derived from debtor and creditor sources and in their coverage of the various instruments (see Box 1). What follows is based primarily on creditor data from the OECD Development Assistance Committee (DAC). Figure 1 illustrates both the providers and the recipients of official flows.
Officially supported export credits6 represent a large share of the external debt of developing countries and economies in transition. In 1996, they accounted for more than 24 percent of total indebtedness of these countries and for 56 percent of their indebtedness to official creditors. In addition, exports covered by Berne Union members—largely through new export credit insurance and guarantees, but also through direct lending—account for about 13 percent of all exports from the countries of Berne Union members, which in turn account for about 80 percent of world exports. Since export credits are regarded as primarily trade promoting rather than development oriented, they are not included in OECD data on official financing flows to developing countries (discussed in Section II).
This paper discusses the Union of Comoros’ 2008 Article IV Consultation and request for Emergency Post-Conflict Assistance and disbursement under the Rapid-Access Component of the Exogenous Shocks Facility. Real GDP growth has been well below the regional average, and per-capita income has steadily declined. Rising food and energy costs have worsened the external position, and the external debt burden is far above the Heavily Indebted Poor Countries threshold. To reverse the deteriorating trend, the authorities have initiated measures in 2008 to contain the fiscal deficit and begin to address macroeconomic and structural impediments to growth.
This Technical Assistance Mission has been undertaken to support the Bank of South Sudan (BSS) in improving external sector statistics (ESS). The recommendations made during the 2018 mission for the recording of oil exports and transactions with Sudan under the Transitional Financial Agreement were implemented by the BSS. The mission worked toward enhancing the inter-agency cooperation by meeting with selected public sector bodies, providing them with an overview of the balance of payments and the data that the BSS will request from them. Before the end of the mission, requested data from one of the entities, the Civil Aviation Authority was provided. A work program was developed to conduct a visitor expenditure survey and a preliminary International Reserves and Foreign Currency Liquidity template was submitted to IMF’s Statistics Department for review. In order to support progress in the various work areas, the mission recommended a detailed one-year action plan, with the several priority recommendations carrying weight to make headway in improving ESS reliability.
Total multilateral lending15 to all developing countries16 fell in 1996 (gross $42 billion; net $15 billion) after the record high level of 1995 (gross $60 billion; net $28 billion) that reflected exceptionally large IMF lending in support of Mexico and Russia (Table 4)17. After growing steadily over the last decade, multilateral lending to all developing countries has reached in gross terms nearly double the size of official bilateral lending. For low-income countries, and heavily indebted poor countries (HIPCs) in particular, multilateral lending has become the largest source of public borrowing in net terms, while middle-income countries have been increasingly relying on borrowing from private sources18. Concurrently, middle-income countries continued to receive the bulk (65 percent) of multilateral lending, amounting to $27 billion (gross), in 1996. However, reflecting the higher share of concessional lending, which is generally of longer maturity and therefore involves smaller repayments, low-income countries received about half of net disbursements from multilateral institutions.
This study provides information on official financing for developing countries with the focus on low and lower-middle-income countries. It updates the 1995 edition and reviews developments in direct financing by offical and multilateral sources. Topics of interest include external debt sustainability for heavily indebted poor countries; new official financing flows to developing countries; developments in export credits;financing from multilateral institutions; debt restructuring by official bilateral creditors; plus, numerous appendices.
Since August 1995, Paris Club creditors have concluded 23 rescheduling agreements, involving debt-service obligations and arrears amounting to $58 billion (Table 13)21. Among these, 5 agreements were concluded on middle-income (nonconcessional) terms, and 18 agreements were reached with low-income countries on Naples (concessional) terms.22
International Monetary Fund. External Relations Dept.
This paper examines the policy of protectionism in world trade. It reviews alternatives to trade restrictions, factors influencing trade policies, and implications of protection for developing countries. The paper highlights that the rise in protectionist pressures is worrisome, because the likelihood of chain reactions toward more protectionism generated by individual restrictive actions is greatest in a setting of slow economic growth and highly interdependent economies. The paper also analyzes capital utilization in the manufacturing enterprises.