First, debt relief arrangements should seek to avoid imposing any unfair burdens on other developing countries and secondly, resources made available for debt relief should not detract from ODA flows.

The sustainability of a country's external debt is determined by the projected flows of revenues and expenditures, including those for servicing debt, as well as changes in exchange rates.

That is equivalent to about five times aid flows and budget savings from debt service relief provided by high income countries in 2002.

To address the debt burden problem, many African countries at first resorted to repeated debt rescheduling which focused on debt service flows, resulting in steadily increasing debt stocks and related service payments.

As I said here a year ago, the IMF has long been an advocate of increases in aid flows and debt relief, and we are working intensively on how to best give effect to the G 8 debt forgiveness proposal.

Those that do relatively well share three characteristics low levels of public debt, limited dependence on exports or capital flows, and robust democratic institutions.

They underscore the importance of the regulation and supervision of all financial institutions preceding liberalization, as well as a sound and coherent policy framework for managing and monitoring capital flows, in general, and debt management, in particular.

(c) Reduce barriers to long term, non debt creating capital flows, especially FDI, and the costs to migrants of sending their remittances through sanctioned institutional channels.

This should not be surprising, since many factors besides international debt flows can cause domestic banks to throw caution to the wind and start lending recklessly.

Damming Capital

The Capital Flow Conundrum

Aid flows were tiny.

(d) Contribution and expense flows

Capital flows

Capital flows and remittances

New refugee outflows

The portion of capital inflows that is not re exported represents net capital inflows.

C. Investment and capital flows

To take special measures to address the challenges of poverty eradication and sustainable development in Africa, including debt cancellation, improved market access, enhanced Official Development Assistance and increased flows of Foreign Direct Investment, as well as transfers of technology.

However, the Secretary General also highlighted the ever pressing challenges of inadequate official development assistance, the growing debt burden, the unfair and inequitable global trade regime, and very low foreign direct investment flows to Africa.

Private sector capital flows now dwarf traditional public sector aid flows.

Industrial trade, technology and investment flows

INDUSTRIAL TRADE, TECHNOLOGY AND INVESTMENT FLOWS

Foreign direct investment flows can, and should, be encouraged.

Innovative proposals mentioned for financing social development included the creation of a tax on international transactions, a scheme for an international finance facility to improve the coordination and transparency of aid flows and programmes of exchange of debt relief for social development initiatives.

Debt

It was also increasingly concentrated in a small group of 20 or so emerging markets which received over 90 per cent of total inflows of capital in the 1990s, compared to some 50 per cent before the outbreak of the debt crisis.

While the debt crisis in the developing world was triggered by a reorientation of policies in the industrial countries (UNCTAD, 1986), it did reveal the extent to which rapid growth had come to depend on steadily rising capital inflows.

Other Governments are promoting investment flows within the framework of bilateral agreements.

Debt and Delusion

Debt and Democracy

The Debt Delusion

Debt relief

The country simply cannot keep on piling debt upon debt.

Financing South South trade, technology and investment flows

They are a threat to all, especially in times of high capital mobility, when governments rely too much on foreign lenders apparent willingness to provide funds and find themselves in dire straits when capital inflows stop.

One of them is a reserve requirement on cross border flows successfully implemented in Chile, Colombia, and elsewhere or, even better, on cross border liabilities. Taxes on inflows can play a similar role, as can minimum stay periods for capital inflows.

Debt Déjà Vu

Europe s Debt Wish

(d) Debt burden

Austerity and Debt Realism

Debt and America s Decline

The Debt Death Trap

The Government Debt Bomb

Haiti External debt