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WASHINGTON, D.C., April 13 -- The International Finance Corporation (IFC) has released its sixth annual Trends in Private Investment in Developing Countries report. The 1995 edition presents private and public investment data through 1993 and focuses on foreign sources of financing, including foreign direct investment (FDI), international debt issues, new equity capital, international bank lending, and portfolio equity flows. It was produced by Jack Glen and Mariusz A. Sumlinski of IFC's Economics Department. The report highlights the rapid growth of foreign private sector financing flows to developing countries, which continued in 1993, reflecting generally stronger economic growth and a renewed emphasis on the private sector. Public investment, in contrast, continued to decline. On the whole, however, the transfer of much public investment to the private sector through privatization of state-owned enterprises and infrastructure has not yet lifted total investment. In 1993, the East Asian region continued to
maintain the highest levels of private investment (18.8% of GDP), followed by Latin America (13.9%); Europe, the Middle East and North Africa (12.6%); South Asia (12.0%); and Sub-Saharan Africa (7.7%), where, with the exception of Mauritius, private investment rates have generally declined since 1990. Individual countries where private investment remains particularly strong or increased dramatically in 1993 include Chile, Egypt, Mauritius, Panama, the Republic of Korea, Thailand, and Turkey. Foreign sources of capital have also increased relative to the total value of private investment. This is best illustrated by Sub-Saharan Africa, where foreign sources of capital were equivalent to half of all private investment in 1993, and Latin America, where foreign capital financed one-third of total private investment, up from only 15 percent and 7 percent, respectively, in 1990. Expanding FDI flows accounted for most of the overall increase in Africa and have also grown steadily in Latin America. IFC is a member o
f the World Bank Group and is the leading multilateral source of equity and loan finance for private sector projects in developing countries. Press copies may be ordered by phone at (202) 473-3969 or fax at (202) 676-0365. The general public may obtain copies through the World Bank bookstore at (202) 473-2941.
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