Developing country finances, present and future

Abstract

Existing ways for developing countries to obtain finance are explained-IMF credits, compensatory finance, private loans, etc. Reforms to these arrangements are discussed; for instance, the IMF could ease the conditions it imposes for loans, compensatory finance could react to rising import bills as well as to falling export revenues, and Special Drawing Rights could be better linked to aid schemes. Given inertia in existing facilities, a new World Development Fund may be needed to complement existing institutions.