WASHINGTON, D.C., May 7, 1998—The International Finance Corporation’s ninth annual report updating data on private and public fixed investment shows wide disparity in investment performance across regions.
"Trends in Private Investment in Developing Countries" covers the period through 1996, the most recent year for which such data exist. It shows that prior to the recent crisis, East Asia remained the region with the highest levels of investment for both the private and public sectors. Private investment declined marginally in Latin America and increased in sub-Saharan Africa, South Asia and Europe Middle East and North Africa, especially in some of the least-developed economies. Overall, private investment remained fairly stable, while public investment continued its declining trend.
This year’s edition includes comparable data for major OECD countries, and considers the role of domestic stocks and bonds markets in financing private fixed investment. These markets have grown significantly since 1980, but provide only limited sources of capital for private investment compared to their counterparts in developed countries.
IFC, part of the World Bank Group, encourages the growth of a healthy private sector in developing nations by financing business in partnership with private investors, and by fostering conditions that stimulate investment such as domestic financial institutions and capital markets.
Trends in Private Investment in Developing Countries
By Jack Glen and Mariusz Sumlinski
