Very recent study done by the World Bank related to the global financial crisis where they announced that the developing world will grow 1.2 percent this year after growing 5.9 percent in 2008 (excluding India and china), and developing economy will shrink by 1.6 percent in 2009.
The reason behind the World Bank’s projection is the dependability of developing economy on external resources consequently put them on back track where India and china are focusing on their internal resources as well as targeting external one.
Private investors are opportunists and like work under umbrella where they find their interests are protected and investment grows faster, unfortunately other developing economy are unable to justify their stands in current scenario and they are still waiting for some bail out from external support through private investors mainly.
Developing countries (need not to mention other then china and India) couldn’t maintain own mechanism to safeguard national interest and their dependence on private finance put them into a situation where they are exposed to this kind of situation.
According to the report the private investors are abandoning projects in poor countries in massive numbers, as they deal with their own problems in wealthy financial centers in New York, London, Frankfurt and elsewhere.
Annual report of World Bank on developing country financing, predicted that international capital flows will tumble to $363 billion this year, down from $707 billion in 2008 and a high of $1.2 trillion in 2007.
Present financial crisis is considered the worst since the great depression of the 1930’s. And the global economy has fallen into its first recession since World War II.
Developing countries do need to understand how to use internal resource for a sustainable development; private investors will not come for charity as they understand the success mantra is to work in reasonably favorable environment.
This is the high time to understand which was always misunderstood. The formula of growth is vested in internal resources only.
The reason behind the World Bank’s projection is the dependability of developing economy on external resources consequently put them on back track where India and china are focusing on their internal resources as well as targeting external one.
Private investors are opportunists and like work under umbrella where they find their interests are protected and investment grows faster, unfortunately other developing economy are unable to justify their stands in current scenario and they are still waiting for some bail out from external support through private investors mainly.
Developing countries (need not to mention other then china and India) couldn’t maintain own mechanism to safeguard national interest and their dependence on private finance put them into a situation where they are exposed to this kind of situation.
According to the report the private investors are abandoning projects in poor countries in massive numbers, as they deal with their own problems in wealthy financial centers in New York, London, Frankfurt and elsewhere.
Annual report of World Bank on developing country financing, predicted that international capital flows will tumble to $363 billion this year, down from $707 billion in 2008 and a high of $1.2 trillion in 2007.
Present financial crisis is considered the worst since the great depression of the 1930’s. And the global economy has fallen into its first recession since World War II.
Developing countries do need to understand how to use internal resource for a sustainable development; private investors will not come for charity as they understand the success mantra is to work in reasonably favorable environment.
This is the high time to understand which was always misunderstood. The formula of growth is vested in internal resources only.
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