Capital markets in developing countries are under increasing political pressure. What solutions are likely to the conflicts and problems that arise over the need to integrate them into exploiting the resources, and fulfilling the needs, of a developing economy as a whole?

The financing of long-term growth in developing countries has become more of a problem every year. In the following article one particular new financial instrument — Growth Participation Units — is discussed as a particular way to attract private sector long-term financing of development.

As the flow of financial aid from the industrial countries may be expected to shrink rapidly as a consequence of their economic difficulties, the developing countries will have to find out possibilities of using their own financial resources more effectively. In this connection the task of...