Flows to developing countries appear to lead the recovery in global FDI.

(a) Is increased global integration a prerequisite for enhancing South South trade, technology and investment flows?

The 1990s certainly witnessed a significant increase in the global integration of goods, services and investment flows.

The continent had been not enjoyed the benefits brought about by globalization, as manifested in its shares the lowest of all in global FDI, trade, financial flows and global GDP.

Developing countries and others are, however, not fully satisfied with the outcome in several areas, such as trade, investment flows and global governance.

Artificially low exchange rates, restrictions on capital flows, and excessively large currency reserves all create global imbalances. Any strategic partnership between Europe and Asia must encourage global economic responsibility based on cooperation and transparency.

Rather, they were the gross flows of finance from the US to Europe that allowed European banks to leverage their balance sheets, and the large, matching flows of money from European banks into toxic US subprime linked securities. Both critics and defenders of global imbalances almost entirely overlooked these gross flows in both directions across the North Atlantic.

We have global supply lines in which goods are developed in one country, manufactured in another, and assembled in a third. Capital and know how flows across borders, so traditional bilateral trade flows have been replaced by a complex web of international commercial relations.

It should be a matter of great concern to all of us that Africa continues to have the lowest share of global foreign direct investment flows.

Capital flows

In the space of only a decade, significant advances in the field of technology have transformed global information flows and the way in which business is conducted.

However, these flows tend to be more volatile than official flows and pro cyclical.

Despite increases in FDI globally from 15 billion in 2003 to 20 billion in 2004, Africa's share in global foreign direct investment flows remains only 3 per cent.

LONDON Over the last decade, America s expansionary monetary policy and China s rapid growth have been the two key drivers of global financial flows. Now, both dynamics are being reversed, generating new risks for the global economy particularly for emerging countries.

(c) Assist integration of developing countries into the global production system, including the facilitation of cross border flows of investment and technology and improvement of their IPR regulatory framework.

As the McKinsey Global Institute noted, with the exception of cross border finance, global flows are just as robust now as they were before the crisis. There has even been a partial revamping of key global institutions, from the rise of the G 20 to reform of the International Monetary Fund.

Why Capital Flows Uphill

This river flows rapidly.

Investment and private flows

Flows to Chile doubled.

financial flows for development.

Capital flows and remittances

The IMF also fails to appreciate fully that capital flows should be regulated at both ends, or at least that advanced country regulations will not make matters worse. IMF research over the last year has outlined circumstances in which industrialized countries should also take part in regulating global capital flows.

To address in the relevant international fora the urgency of measures at the global level to monitor short term capital flows, particularly in respect of the sources and movement of speculative capital, and to protect the autonomy of developing countries in managing capital flows and choosing their capital account regime.

FDI flows in services between developing countries are growing faster than flows between developed and developing countries.

Although the global figure of domestic resource flows is a rough estimate, it is the most plausible one, given the fact that data are often incomplete and not entirely comparable.

And Free Flows the Nile

The Seine flows through Paris.

(d) Contribution and expense flows

C. Investment and capital flows

True, private capital flows have surged in the wake of global liberalization and these countries privatization schemes. But private capital flows have proven to be volatile and prone to sudden interruptions, as exemplified by the Asian and Russian financial crises of the late 1990 s, or more recently by investors pulling out from infrastructure sectors.

Private capital flows have come to play the dominant role in development finance, eclipsing both official bilateral and multilateral flows.

The stream flows into the pond.

The river flows under the bridge.

That river flows into the Pacific.

Industrial trade, technology and investment flows

INDUSTRIAL TRADE, TECHNOLOGY AND INVESTMENT FLOWS

Encouraging private capital flows and remittances

The flows generated through new and innovative mechanisms must be additional and should complement the regular flows, including foreign direct investment.

Sources UNFPA, Financial Resource Flows for Population Activities in 2002 (New York, 2004) and UNFPA UNAIDS NIDI Resource Flows Project database.

Sources UNFPA, Financial Resource Flows for Population Activities in 2002 (New York, 2004) and UNFPA UNAIDS NIDI Resource Flows Project database.

Sources UNFPA. Financial Resource Flows for Population Activities in 2002 (New York, 2004) and UNFPA UNAIDS NIDI Resource Flows Project database.

Sources UNFPA. Financial Resource Flows for Population Activities in 2002 (New York, 2004) and UNFPA UNAIDS NIDI Resource Flows Project database.

We also need to identify the best policies for dealing with them keeping in mind the impact of these policies on the global economy as a whole. And we should explore whether a system of global rules aimed at reducing the volatility of capital flows would be useful.

This therefore calls for careful consideration and implementation of measures for streamlining the inflow of aid flows and avoiding harmful surges of flows.