Domestic resource mobilization, external finance and vulnerability

Abstract

The issue of development finance in the LDCs involves the analysis of three interrelated themes namely, resource requirements for economic growth, poverty reduction and sustained development; the effort made to mobilize domestic resources; and the need for, and availability and effects of, external sources of finance. This chapter examines resource requirements in the LDCs in the context of their specific structural characteristics, and it assesses the effort made in domestic resource mobilization and the degree of reliance on external sources of finance.