ASi" kUCTURE FlOR DEVELOPMENT

J-t---00:- -3_
j
.. t~L,a,ozf0 ..
: . . . . . D . .. .. .
.
E '. A ' - . , . - . - &. ',, t t~t. - Xt r
*X' '''X' ""'
-';
z
- -t-.
- - ~assets that pension funds and other mstitutional m- thestructunng of starid alone prqcs usmngproject
- - .~estors can hold in thie capital markets in dweveop- finance tecuniques may reuie considerable eEFfort
: ~~mgcounties. -and techmiaa assistance from intemational agmesa.
- - -
- - ~~~~~~~~~~~Wer domestic capital markets are not wveU deve-.
; ~~Prospects oped and financial intermedianes- are -weak, the
- - . ~~~~~~~~~~~only
other option may be to strngthen spalized
- Moving from today's still heavy depenldence on hifrastructureffinnce institutions.Once firnancial in-
0~~~~~~~~~~- - .. '-.
- ~~public firiancing to tomorrow's sytem of more pn- -termediarfes are well developed,
-
thejy can
-1OS
take on
* --
gxW
-vate sponsorshp is Mcely to be a long and some.- the task of cataIyzing the development of domestic
;
-
tfimes
%'.r
painffil . process. In important respects, the tra- capital market through appraisa and underwriting
~~ditional style of miasrdr fiaancing has been functions. And once crecht rating-and public regu-
- -too easy. Money has flowed duwugh channels I ation of fiacl markt are, in place, other opwhere
scrutiny has often been limited because pub- tions open up, and the use of long-term savmigs
:- .-.- ,,= lHi ,...7. sponsorship :v? ... has pzovided high levelsof comfort of contractual -institutions -. -r and .Ig the deveopment =
- - - to lendesTemvtoamrapnndrna- of a variety of financial instruments should become
; -~ent syste imnplies greater scrutiny and the need possibIe.
:- ~~for more resource to coordinate many divers T.hegood news is that private enterprisehasbeen
- - ~interests. In returxi, it offers the pron-se of greater moving into a wide range of countries and pro*ts.
:-accountability. Lg.aL and regulatory reform is ahdy under way.
-; - ~~From the menu of new approaches, the options Infrastructure providers are being privatized, :lowr,
-available to a cofuntry depend on its administrative of foreign direct investinent bv new infrastracture
-. capabilityr and the state of its capital market (Figure -entrepreneurs are on the rise, as are international
0 . 5*56). Project finance repzesents the first rung of the flows of portfohio capitaL And the growth of domes--
-: . - ladder and should, in principle be reachable in all tic capital markets is a source of optiin hnance
- :countries. W.here capabffities lack adequate depth, . follows enterprise.-