This has come at the expense of sectors that are more dependent on equity financing.

Undercapitalization can be cured by an infusion of new equity.

The majority of such firms are financed by local capital.

It is for this reason that I have suggested a capital increase to the shareholders of the bank to 30 billion from the current 20 billion.

It would also reduce numerous efficiency reducing distortions in the US tax code, including substantial tax advantages for debt financing over equity financing and for non corporate businesses over corporate businesses.

Debt servicing obligations undermine the ability of many developing countries to finance investment in human capital and infrastructure, thereby affecting economic growth and the generation of employment.

Without sustained investments in human capital and institution building, growth is condemned to peter out.

Where realistic debt restructuring scenarios indicate capital shortfalls, across the board conversion of bank debt into equity will be necessary.

By 2012, human capital s contribution to China s GDP growth fell almost to zero, with fixed capital accumulation accounting for roughly 60 of total growth.

The third assumption is that the United Nations underestimated the flight of capital and the erosion of growth due to external debt servicing.

Lacking well developed capital markets as an alternative source of credit, bank funding channels are especially vital in Asia.

Remittances improve countries' ability to finance development objectives, the foremost of which are poverty reduction and improvement of human capital.

Growth will need to rely to a much greater extent on sustained improvements in human capital, institutions, and governance.

Sustained economic growth requires, everywhere, the accumulation of physical and human capital, as well as the acquisition of technological capabilities.

Venture capitalists want to fund the next Facebook, while philanthropists want to use Facebook to support good causes.

Initial capital

Another big change has come from fast growing emerging market countries, many of which, facing a wall of money coming their way from slow growth advanced countries (and mindful of the costs that large and volatile capital flows can bring), have chosen to apply capital controls.

The decline has occurred because, relative to population growth, fixed capital investment, knowledge and skills, and improvements in institutions have not compensated for the degradation of natural capital.

These policies would affect US economic growth, the budget deficit, national saving, and hence global trade and capital flows.

Rapidly growing catch up economies are paddling furiously to avoid being dragged down by a torrent of capital inflows.

And, in Europe, the sovereigns must address firmly their financing problems through credible fiscal consolidation. In addition, to support growth, banks must have sufficient capital buffers.

Instead, the keys to growth and development appeared to lie beyond an increase in capital intensity as measured by capital output ratios skills, education, technology broadly understood, and improvements in organizational management.

As above, firm value is enhanced when, and if, the return on capital exceeds the cost of capital.

The case of my own firm, Christofferson, Robb Company (CRC), illustrates how private capital markets can finance renewable energy when the subsidy is right.

The Art of Capital Flight

Damming Capital

The Capital Flow Conundrum

Capital flows and remittances

E. Financial capital and resilience

Among the drivers of growth, domestic capital formation retained much of its momentum from preceding years.

We also found that increasing capital buffers to appropriate levels helps, rather than hurts, economic growth.

Growth that relies on capital inflows or commodity booms tends to be short lived.

Most of the equity in the sector is local, and strong growth in this area points to the possibility of exporting to the region.

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

And emerging market growth returned to pre crisis levels and appears to be sustainable, helped by unorthodox policies designed to sterilize massive capital inflows.

Private capital flows have come to play the dominant role in development finance, eclipsing both official bilateral and multilateral flows.

This supply chain is characterized by the dominance of the state owned banks, high domestic savings, relatively under developed financial markets, and a closed capital account.

For, even if growth continues at its current pace, more capital will be needed, especially for small and mid sized banks.

The Siren Song of Capital Controls

Investment and private flows

(o) Working Capital Fund

Brazil has been aggressive in terms of capital restrictions, twice increasing its tax on financial inflows.

That would mean that the US would continue to need substantial inflows of foreign capital to fund business investment and housing construction.

They calculated that 75 to 80 of economic growth did not come from increasing the capital output ratio at least not if the private marginal product of capital was taken as an indicator of the social marginal product.

Owing to its underdeveloped financial system and inefficient capital markets, China would be unable to withstand an attack akin to those that triggered the Asian financial crisis without the protection of capital controls.