Problem
Inadequate global transfer of funds
Nature:
Capital transfer remains a central problem of the economic growth of the developing world. The disparity between the demand and supply flow of capital is at variance with humanity's global needs. Foreign aid in the form of grants to developing countries has been declining, as have been multinational enterprise investments. The foreign debt problems of seven or eight countries has caused the tightening up of bank loans as well.
Incidence:
In the capital-importing developing countries in 1983 as compared to 1981, direct investment was down $5,100 million and long-term credits were down $14,100 million.
Broader Problems:
Obstacles to world trade Narrower Problems:
Foreign exchange restrictionsForeign exchange reserve shortages Related Problems:
Inappropriate investment Reduced By:
Destabilizing movements of short-term capitalStrategies:
Improving global transfer of funds References:
Nurkse, Ragnar: Problems of Capital Formation in Underdeveloped CountriesGiersch, Herbert: Capital Shortage and Unemployment in the World Economy: symposium 1977 Subject(s):
Commerce → FinanceCommunication → Communications
International Relations → Planetary initiatives
Societal Problems → Inadequacy
Related UN Sustainable Development Goals:
Problem Type:
C: Cross-sectoral problems Date of last update
04.10.2020 – 22:48 CEST