Abstract

Net private capital flows to developing countries rebounded in 2002, after falling below $20 billion in 2000 and 2001. However, despite the recovery, such flows stayed at less than a quarter of the peak reached in 1996, before the outbreak of the East Asian financial crisis. Foreign direct investment (FDI) remained the only positive component among the broad categories of private capital inflows, but it was well below the historical high registered in 2001 (table 2.1). The other components, net portfolio investment and bank lending, were again negative. Net official flows, including IMF lending, were stable at the level attained in 2001. The picture is somewhat different for the

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