WASHINGTON, D.C., May 18, 1999 –
The International Finance Corporation has just released statistics and analysis on trends in private and public capital formation from 1970 to1997, providing valuable benchmark information on the period leading up to the Asian crisis.
"Trends in Private Investment in Developing Countries", containing foreign and domestic, public and private capital formation trends, shows that 1997 was a record year for private capital formation in developing countries. Public investment fell to its lowest point in almost a quarter of a century as a share of GDP. Although not included in the discussion paper, World Bank data for the period since 1997 indicate that the financial crises have not significantly affected overall emerging markets investment levels. Investment dropped from 30 percent to less and 25 percent of GDP in East Asia in 1998, but it fell only from 22.6 percent to 22 percent worldwide owing, in part, to an increase in investment in Latin America and South Asia.
The paper, produced by the IFC Economics Department, includes the results of a country-by-country survey of the views of company executives on obstacles to doing business in 74 developing, transition and industrialized economies. Unpredictable courts and lack of financing emerged as major factors that discourage private capital formation.
To obtain a copy of this publication, or for further information, please contact IFC Corporate Relations at (202) 473-7711 or send an e-mail request to Vincent Yemoh at vyemoh@ifc.org
IFC Discussion Paper #37:
Trends in Private Investment in Developing Countries
by Guy Pfeffermann, Gregory Kisunko and Mariusz Sumlinski:
