International finance : meeting the needs of people in developing countries

This report underscores that International finance is an important vehicle for growth, for creating jobs, for reducing poverty and for financing social services, but that flows of finance, however, are very unevenly distributed. Poor countries remain heavily dependent on public finance. Private finance for development is concentrated mainly in a small number of countries. Flows other than foreign direct investment (FDI) are very volatile and their sudden withdrawal can result in recession, unemployment and social deprivation. The paper makes therefore several policy proposals to : increase resources for development, stimulate private flows to developing countries and to reform the international financial system, in order for it to meet the needs of people.