Official finance requirements in the 1990s

Robert Lensink; Peter A.G. Van Bergeijk

doi:10.1016/0305-750X(91)90190-S

Official finance requirements in the 1990s

Robert Lensink^*
, Peter A.G. Van Bergeijk

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

8 Citations (Scopus)

Abstract

Estimates based on a savings gap model with endogenous private bank lending suggest that projections of development aid requirements for sub-Saharan Africa, low-income Asia and Latin America by Fishlow (1987), the Development Committes (1988) and the UN (1988) are too optimistic. A substantial increase in official financial flows to developing countries is necessary. It appears that an increase in private bank exposure by 25%, a 35% debt reduction and a 35% interest reduction (as proposed in the recent Brady Plan) are insufficient to reach minimum growth rates in the three developing regions.

Original language	English
Pages (from-to)	497-510
Number of pages	14
Journal	World Development
Volume	19
Issue number	5
DOIs	https://doi.org/10.1016/0305-750X(91)90190-S
Publication status	Published - May 1991
Externally published	Yes

Bibliographical note

Funding Information:
During the 1960s, there were many studies on the foreign capital and aid requirements of LDCs. More recently, interest in this topic seems to have shifted toward projections of LDCs' current account deficits at given levels of external resources. Examples are the balance-of-payments projections of the World Bank, the IMF and UNCTAD. Emphasis in the literature also shifted to LDCs' internal adjustment. More *This research forms part of a wider study on LDCs' capital requirements by the Foundation for International Development Economics. Comments by Catrinus Jepma, Ger Lanjouw, Charles van Marrewijk, Hans Visser and two anonymous referees were very useful. The views presented here are the authors' and do not necessarily reflect the views and opinions of their employers.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty

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10.1016/0305-750X(91)90190-S

Cite this

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title = "Official finance requirements in the 1990s",

abstract = "Estimates based on a savings gap model with endogenous private bank lending suggest that projections of development aid requirements for sub-Saharan Africa, low-income Asia and Latin America by Fishlow (1987), the Development Committes (1988) and the UN (1988) are too optimistic. A substantial increase in official financial flows to developing countries is necessary. It appears that an increase in private bank exposure by 25\%, a 35\% debt reduction and a 35\% interest reduction (as proposed in the recent Brady Plan) are insufficient to reach minimum growth rates in the three developing regions.",

author = "Robert Lensink and \{Van Bergeijk\}, \{Peter A.G.\}",

note = "Funding Information: During the 1960s, there were many studies on the foreign capital and aid requirements of LDCs. More recently, interest in this topic seems to have shifted toward projections of LDCs' current account deficits at given levels of external resources. Examples are the balance-of-payments projections of the World Bank, the IMF and UNCTAD. Emphasis in the literature also shifted to LDCs' internal adjustment. More *This research forms part of a wider study on LDCs' capital requirements by the Foundation for International Development Economics. Comments by Catrinus Jepma, Ger Lanjouw, Charles van Marrewijk, Hans Visser and two anonymous referees were very useful. The views presented here are the authors' and do not necessarily reflect the views and opinions of their employers.",

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DO - 10.1016/0305-750X(91)90190-S

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VL - 19

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EP - 510

JO - World Development

JF - World Development

IS - 5

ER -

Official finance requirements in the 1990s

Abstract

Bibliographical note

UN SDGs

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