Buy custom Capital Flows To Third World Countries

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However, much of the

value of foreign presence for developing countries is in the blend of both capital flows

and transfer of expertise. If only transfer of expertise were to remain, the balance of

benefits and costs would change quite significantly, as would the amount of policy

and other effort that may be justified in trying to attract such flows...

The emperor

would have no clothes, or - more accurately - would be half-naked.

The alternative scenario is that the sharp decline is mainly driven by general cyclical

factors and the memory of recent crises. If this is the case ? and if crises stop

happening ? then the pay-off is far greater for policy-makers (in developed and

developing countries, as well as in international organisations), to make efforts to

attract private flows to return to developing countries, as well as encouraging more

those flows that are more stable...

General points of the essay

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