To propose changes that can effectively alter lenders' and investors' behaviour in a way that leads to an increase in stable flows to developing countries, a research project led by IDS investigated how these actors operate and what factors and constraints are key in their lending and investment decisions. Moreover, it identified new elements since the financial crises of the late 1990s, to understand better why capital flows to all developing countries have fallen so dramatically. Also, the project monitored reform of the financial architecture, and studied policy proposals to encourage flows. This short paper summarizes the highlights.
Griffith-Jones, S. Enhancing the flow of private capital to low-income countries. (2003) 3 pp.