This paper confirms neoclassical theory that LDCs tend to experience net capital inflows and more developed countries net capital outflows, when accounting for the degree of capital account openness, and various country characteristics. Findings are driven by FDI, portfolio equity, and to some extent by loans to the private sector.

The June edition is now available online, covering annual data for 2007-9 and monthly data for February, March and April 2010. It includes data broken down by country on commercial bank assets and liabilities positions, deposit and lending rates, and reserves; private sector bond issues; and the operations of the regional stock exchange (BVRM) including the number and value of securities listed and traded, market capitalisation, and BVRM and Composite Indices. The Bulletin presents information in both French and English.

This edition argues that strengthening business climate in South America remains critical, finds remittances to Central America have picked up and FDI has remained resilient, and tourism in the Caribbean is experiencing a slow and variable recovery. The region's financial systems were generally resilient to the crisis (thanks to improved oversight and regulation over the past decade), although avoiding crises and high credit pro-cyclicality remain challenges. It identifies a broad consensus that regulation and supervision must move beyond individual financial institutions to address systemic risks, interconnectedness, and excessive pro-cyclicality.

Benin has published its analytical report detailing the results of its first national survey on foreign private capital flows and investor perception. The report is now available online (in French only).

This Central Bank report presents data captured in a series of quarterly surveys, which recently replaced the annual foreign assets and liabilities surveys. It covers stocks and gross transactions for 2007-8 split into loans and credits from related companies (a component of FDI), supplier credits from unrelated entities, and loans from unrelated entities. Other breakdowns include maturity, sector of economic activity, and source country.

The Central Bank's latest report presents stocks and transactions data to Q1 2010, for FDI, portfolio, other investment, remittances and related income. FDI is presented by sector of economic activity and source country, and private sector debt by term for financial and non-financial sectors. The annex gives a BOP series for 2003 – Q1 2010.

This report focuses on the development impacts of improved access to information and communication technologies. Drawing on examples from countries such as The Gambia, Ghana, Kenya, Nigeria, Tanzania and Uganda, it identifies new opportunities especially for SMEs to develop their businesses and livelihoods, reduce information search and transactions costs, and benefit from improved market efficiency.

Quantitative indicators of the quality of governance in developing countries and emerging economies have greatly proliferated since the mid-1990s. The main users of these indicators are international investors, official development agencies, journalists and academics. The most widely used, and misused, governance indicators are composite perceptions-based indicators. This paper argues that even the most carefully constructed composite indicators have limitations their users seem widely to ignore. Greater transparency is required both in the production and in the use of governance indicators.

Global investment Trends Monitor #4 finds that global FDI has stagnated in 2010 after slow recovery in 2009, and does not appear to be filling the gap created by reduced stimulus packages. Transnational corporations in response to disappointing economic news and turmoil in sovereign debt markets, have reduced their intra-company loans, and reinvested earnings tumbled as firms repatriated a larger share of the earnings of their foreign affiliates. Developing and transition economies experienced smaller decreases. Cross-border M&As show a gradual rebounding, but greenfield investments declined, suggesting that prospects for a sustained FDI recovery are still uncertain. Risks include currency wars and trade protectionism.

A joint World Bank, IMF, UNCTAD and DFI medium term debt strategy mission to Bangladesh was conducted from September 20th to the 30th. The mission focused on helping to build Bangladesh capacity to conduct a MTDS. The mission inter alia conducted a three day training program and concluded with a thoughtful presentation by the Treasury and Debt Management Wing (TDMW) on debt strategy and a presentation by the mission on policy issues.