Mobilizing domestic and private resources

The combination of high oil prices and production, low interest rates, ample liquidity in both public and private sectors and associated domestic demand expansion gave rise to strong growth.

Only the emerging and developing economies of Asia could effectively contribute to lifting global demand through a coordinated effort aimed at boosting domestic consumption, which, in turn, would stimulate additional investment. Recent IMF experience suggests that, through appropriate coordination, private funds could be mobilized for big private public partnership projects linking demand expansion with infrastructure investment.

Reducing dependence on external demand for example, by promoting private sector investment and encouraging household expenditure is crucial. Supply side policies that promote small and medium size enterprises and service industries accommodating domestic demand are also critical to ensuring more inclusive and sustainable growth.

Other contributory factors were high domestic liquidity and low, albeit gently rising, interest rates, which enhanced domestic demand expansion.

Second, the Chinese production mix does not correspond to domestic demand, and investment in long products has outpaced demand growth.

Some countries are making consistent efforts to revamp exhausted growth models. In China, for example, this involves less reliance on exports and public investment, and more on the private components of domestic aggregate demand.

Support private investment in Africa, both domestic and foreign.

Sources of private investment may be domestic or foreign.

However, the rapid expansion in domestic demand resulted in remarkable trade deficits.

The private sector has met most of the growing demand for childcare.

The standard way to buffer the effects of austerity is to marry domestic cuts to devaluation of the currency. Devaluation renders exports more competitive, thus substituting external demand for the domestic demand that is being compressed.

To enhance domestic demand, Asia, including China, must reallocate resources and structurally transform the economy. Reinforcing social safety nets, broadening and deepening financial markets, and supporting small and medium size enterprises would also strengthen domestic demand.

Expansion in domestic demand resulted in an increase of 22 per cent in imports.

It also means getting the balance between domestic and external demand right, and appreciating the sensitivity of medium and long term growth to the composition (and size) of domestic aggregate demand. Against this background, monetary policymakers must be cautious, because low interest rates can shift the growth model back toward leverage and domestic consumer demand, stalling the structural shift to the tradable side that is underway.

Accumulating excessive debt usually entails moving some part of domestic aggregate demand forward in time, so the exit from that debt must include more savings and diminished demand. The negative shock adversely impacts the non tradable sector, which is large (roughly two thirds of an advanced economy) and wholly dependent on domestic demand.

Public and private investment which has served as a key driver of China s growth over the last four decades can play a central role in expanding domestic demand, but only if returns are high. While low return investments generate aggregate demand, they do not increase future income or productive potential, and thus do not foster sustainable growth.

A vibrant domestic investment base will emerge only if the private sector is induced to engage in productive activities by encouraging domestic investments.

Private domestic capital formation is the largest source of new investment in developing communities.

As China satisfied its demand for safe assets, it turned to riskier foreign investments. It began rebalancing its economy from saving to consumption and from exports to domestic demand.

Options include international debt financing, domestic tax revenue and user fees, borrowing in domestic capital markets, and public private partnerships for water related investments.

Economically, Japan enjoys a strong production capacity, but its domestic market is relatively limited. In particular, the domestic demand is relatively weak in the context of aging population.

We're at a magical confluence where private wealth and imagination are driving the demand for access to space.

Oil windfalls alone are not necessarily responsible for domestic demand, since oil revenue can migrate into foreign asset accumulation.

In the short run, the non tradable sector is, by definition, subject to domestic demand constraints. A shortfall in non tradable demand inevitably limits growth on that side of the economy.

For the energy sector, the common variables used to develop scenarios were population growth, demand, and gross domestic product (GDP).

An income tax hike will reduce private demand (unless one believes in perfect Ricardian equivalence), including demand for other countries exports. Other macroeconomic policies of all kinds influence the current account balance.

The growth in domestic investments would not only enhance national wealth, but would also spur the demand for foreign capital and technology in an escalating, mutually reinforcing manner that makes investments demand driven.

Until 1 July 2004 cases of domestic violence were investigated based on the provisions of private charges.

Public transport options remain inadequate, and demand for private vehicles continues to grow dramatically, in industrialized and developing countries alike.

It is a challenge for oil exporters among the ESCWA member countries to combine sustainable domestic demand creation with economic diversification.

The review panel will consist of a high level representative from the Government, an international expert, and representatives from the domestic private sector and the international private sector.

Domestic demand led growth will be a more reliable strategy than export led growth. That means that countries with a large domestic market and a prosperous middle class will have an important advantage.

The action plan also noted the role of the domestic private sector in establishing ties with transnational corporations, as well as the interrelationship between the public and private spheres.

New capacity is mainly planned in developing countries and countries in transition with relatively low production costs and rapidly growing domestic demand.

Continuing economic diversification policies have made it possible for the Gulf Cooperation Council countries to channel oil gains into expanding domestic demand.

(b) That domestic violence, including sexual violence in marriage, is still treated as a private matter in some countries

Market access and both public and private external funding are also needed to complement efforts at the domestic level.

Japan s woes are rooted in real estate and equity bubbles, which were fueled by monetary expansion aimed at stimulating domestic demand after the 1985 Plaza Accord drove up the yen s value and hurt Japan s exports. In the early 1990s, the bubbles burst, leaving the private sector with a huge debt overhang.

Growth also accelerated in New Zealand while remaining substantially unchanged in Australia in 2004, supported by buoyant domestic demand and high commodity prices.

It has three primary objectives to identify potential demand among TNCs, to upgrade potential domestic business partners, and to match and monitor operations.

Although the role of monetary policy in demand management is limited when a national currency is pegged to a currency such as the dollar, its indirect effect of creating healthy domestic demand could be observed in 2004.

Moreover, the use of wood by Africa s growing population is causing increasingly rapid deforestation in many countries. There is significant potential domestic demand for coal briquettes to replace wood for cooking and domestic and industrial heating.

As part of the liberalization sequence itself, State owned banks were sold to the private sector, both domestic and foreign.

We are convinced that mobilizing domestic financial resources for development must include the mobilization of both public and private resources.