The G-20 and Global Development
Figure 4.10. Net Private Capital Flows to Developing Countries: Only a Modest Recovery 1,400
10
1,200
9 8 7
800
6
600
5 4
400
percent
$ (billions)
1,000
3
year private debt
portfolio equity
FDI
11f 20
e 09 20
20
20
03 20
20
19
97 19
19
07
0
05
–200
01
1
99
2
0
95
200
share of GDP (right axis)
Source: World Bank Staff estimates.
percent of GDP
Figure 4.11. Developing-Country Financing Gaps Will Remain Large 9 8 7 6 5 4 3 2 1 0
total gap ($billion)
low-income countries
2009e 2010p 201 1p 352 210 180
lower-middleincome countries
2009e
2010f
upper-middleincome countries 201 1f
Source: World Bank staff estimates.
The stakes are high. Even relatively small declines in growth can have cumulatively large impacts on poverty. Our simulations suggest that a 0.5 percentage point decline in the developing-country growth rate, resulting, say, from higher capital costs and lower investment, can mean
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