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Developing economies grew faster than advanced nations in 2003
Washington, Apr 20: Developing countries have grown faster at 4.8 per cent compared to advanced economies which grew at 2.1 per cent in 2003, a World Bank report has said.
Washington, Apr 20: Developing countries have grown faster at 4.8 per cent compared to advanced economies which grew at 2.1 per cent in 2003, a World Bank report has
said.
Moreover, the developing nations have been a net exporter of capital since 2000 to advanced economies despite enormous funding needs for their own infrastructure sector,
the report on 'global development finance 2004' released by the World Bank said last night.
Worldwide, GDP grew by 1.8 per cent in 2002 and accelerated to 2.6 per cent in 2003. It is projected to rise to 3.7 per cent in 2004.
But the global economy is emerging from the pervasive slowdown of recent years facing major macroeconomic challenges, including large fiscal deficits in many advanced economies and a large current account deficit in the us, which could have a critical bearing on the outlook for developing countries and the availability of external capital to finance their development, it said.
Developing countries' gdp grew 4.8 per cent in 2003, compared to a 2.1 per cent advance in the high-income nations. The low and middle-income countries are on track this year to match, or even surpass, the record 5.2 per cent growth achieved in 2000, before the global slowdown, the report said.
For developing countries as a whole, foreign exchange reserves rose by about USD 276 billion in 2003, bringing total reserves to 1,227 billion dollars, which is equivalent to nearly four times their short-term external debt.
The build-up reflects a precautionary reaction to the costly crisis of the 1990s, as well as broader factors related to trade and exchange rates.
It underlines the strong financial interdependence between developed and developing countries, it added. Official development assistance, says the report, is still an important source of external finance for many countries.
But as private capital flows have grown, official aid flows have risen only slightly, and remain below the levels needed to achieve the Millennium Development Goals (MDGs). Political developments and changes in attitudes are dramatically altering the landscape for official flows.
Net official development assistance did increase to USD 58 billion in 2002, but half of the USD 6.0 billion rise reflects debt relief donor agencies, rather than increased resource provided directly to developing countries.
Moreover, the increase represents "little progress towards meeting the commitments to higher aid made at the 2002 Monterrey conference."
From 1992 to 2003, said the report, total international investment in developing countries' infrastructure is estimated to have been 622 billion dollars -- an average of USD 52 billion a year or 3.8 per cent of total gross domestic investment in the developing world.
Bureau Report
Worldwide, GDP grew by 1.8 per cent in 2002 and accelerated to 2.6 per cent in 2003. It is projected to rise to 3.7 per cent in 2004.
But the global economy is emerging from the pervasive slowdown of recent years facing major macroeconomic challenges, including large fiscal deficits in many advanced economies and a large current account deficit in the us, which could have a critical bearing on the outlook for developing countries and the availability of external capital to finance their development, it said.
Developing countries' gdp grew 4.8 per cent in 2003, compared to a 2.1 per cent advance in the high-income nations. The low and middle-income countries are on track this year to match, or even surpass, the record 5.2 per cent growth achieved in 2000, before the global slowdown, the report said.
For developing countries as a whole, foreign exchange reserves rose by about USD 276 billion in 2003, bringing total reserves to 1,227 billion dollars, which is equivalent to nearly four times their short-term external debt.
The build-up reflects a precautionary reaction to the costly crisis of the 1990s, as well as broader factors related to trade and exchange rates.
It underlines the strong financial interdependence between developed and developing countries, it added. Official development assistance, says the report, is still an important source of external finance for many countries.
But as private capital flows have grown, official aid flows have risen only slightly, and remain below the levels needed to achieve the Millennium Development Goals (MDGs). Political developments and changes in attitudes are dramatically altering the landscape for official flows.
Net official development assistance did increase to USD 58 billion in 2002, but half of the USD 6.0 billion rise reflects debt relief donor agencies, rather than increased resource provided directly to developing countries.
Moreover, the increase represents "little progress towards meeting the commitments to higher aid made at the 2002 Monterrey conference."
From 1992 to 2003, said the report, total international investment in developing countries' infrastructure is estimated to have been 622 billion dollars -- an average of USD 52 billion a year or 3.8 per cent of total gross domestic investment in the developing world.
Bureau Report