We asked Judith about the prospects for cross-border capital flows; and the positives and risks in the international financial architecture for mobilising and using finance effectively for development in the poorest and most vulnerable countries. Judith details that cross-border capital flows have been quite strong post-crisis, particularly FDI, and there have been positive trends in bond issuances. However risks exist through withdrawal of capital from emerging markets, and markets overplaying their reaction to quantitative easing, leading to strong and damaging capital outflows. To help mobilise flows developing countries need to improve business prospects and develop supportive policy (in capital account management and in relation to the senders of capital flows).
over 1 year ago