Promoting Private Capital Flows and Handling Volatility

Role of National and International Policies

image of Promoting Private Capital Flows and Handling Volatility

Report of a Commonwealth Working Group that considers the role of national and international policies in encouraging private capital flows for investment. The Working Group concluded that, in general, private capital flows can bring notable benefits for economic development by increasing growth and investment.



Enhancing and Sustaining Private Capital Flows

In this chapter, we discuss the role of national policies in attracting and sustaining private capital flows, and in ensuring that those flows are put to best use within the host economy. While these policies may vary according to individual country circumstances, they will include sound macroeconomic fundamentals and the implementation of good microeconomic policies both on the human and on the institutional side. In this respect, foreign investors will look for many of the same factors that influence domestic private investors.


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