World Bank Document

Table 10.6 Net financing flows to developing countries in selected years, 1980-90
(billions of dollars, unless otherwise noted)
Growth rate (percent)'
1990 1985-90
Type of flow 1980 1983 1984 High Low 1970-80 High Low
Official development assistanceb
Current dollars 23.4 19.9 21.3 36.8 31.7 16.8 10.3 7.1
1980 dollars 23.4 20.2 21.8 25.1 24.2 6.1 2.7 2.0
Noncessional loans
Current dollars 46.7 40.6 40.8 66.3 35.1 23.6 12.3 -1.2
1980 dollars 46.7 41.2 41.8 45.2 26.9 12.3 4.4 -5.9
Official
Current dollars 9.8 12.7 16.3 15.4 13.7 25.3 9.9 7.4
1980 dollars 9.8 12.8 16.6 10.5 10.5 13.9 2.3 2.3
Private
Current dollars 36.8 28.0 24.6 51.0 21.4 23.1 13.0 -5.0
1980 dollars 36.8 28.4 25.1 34.7 16.4 11.9 5.1 -9.5
Direct investment
Current dollars 10.6 10.3 9.4 18.1 15.4 16.4 12.0 8.4
1980 dollars 10.6 10.5 9.6 12.3 11.8 5.8 4.2 3.2
Total
Current dollars 80.6 70.9 71.5 121.3 82.1 20.1 11.6 3.2
1980 dollars 80.6 71.9 73.2 82.6 62.9 9.1 3.8 -1.7
Memo items
Net exports of goods and servicesd
Current dollars -92.8 -82.2 -61.5 -132.4 -101.0
1980 dollars -92.8 -83.4 -62.9 -90.2 -77.3
Current account balance'
Current dollars -67.8 -56.7 -35.6 -89.2 -63.4
1980 dollars -67.8 -57.5 -36.4 -60.7 -48.6
ODA from DAC countries as a
percentage of their GNP 0.38 0.38 0.38 0.37 0.37
Note: All items net of repayments. Data are for a sample of ninety countries.
a. Average annual percentage change.
b. Includes ODA grants (official transfers). DAC reporting includes, and the World Bank Debtor Reporting System excludes, ODA flows from
nonmarket economies and the technical assistance component of grants. There are also differences in coverage of recipient countries in the two
data sources.
c. Excludes short-term capital and reserve changes.
d. Net exports of goods and nonfactor services plus net investment receipts minus interest on medium- and long-term debt.
e. Excludes official transfers.
Source: World Bank data.
by limited availability of official finance, including proceed through a realistic set of assumptions
ODA. Yet a retreat from liberalization would slow about the future.
down their economic growth and compound their Those assumptions chiefly concern the policy
debt-servicing difficulties. For many countries, choices of governments. For the industrial coundevelopment
in its widest sense-people leading tries, the assumptions reflect the proclaimed goals
longer, healthier, fuller lives-would have to take of government leaders: smaller budget deficits,
second place to sheer economic survival.
more flexible labor markets, freer trade. These poli-
However, such outcomes are avoidable. The cies would produce the results that governments
High scenarios offer an entirely different prospect, say they want: faster growth, less unemployment,
of faster and more stable growth for both industrial lower real interest rates, and low inflation. The
and developing countries and improving credit- means and the ends of the High scenarios are the
worthiness for every group of developing coun- same as those being discussed and strived for in
tries. This is not just a hope for the 1990s; it could the industrial countries. There is no gap between
be achieved during the transition of the next five economic model and political reality.
years. And, it needs emphasizing, the High sce- The same is true for the developing countries.
narios do not describe some idealized set of out- The High scenarios assume that the policy reforms
comes. They start from the less than ideal circum- already under way in many countries will be constances
of 1985, with all its awkward legacies, and tinued. The objectives of those policies-to restruc-
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