Table of Contents -- Foreword -- Acknowledgments -- Selected Abbreviations -- Overview and Policy Messages: Harnessing Cyclical Gains for Development -- Chapter 1 The Global Upturn and the Need for Adjustment -- Adjustment, recovery, and imbalances in the high-income countries -- Developing countries: a favorable outlook, but risks remain -- Regional prospects -- Advanced-economy policies and the outlook for development finance -- Note -- References -- Chapter 2 Private Debt Finance for Developing Countries -- Conditions affecting the supply of funds -- Conditions affecting the demand for funds -- Ongoing structural change in financing -- Bond flows responded strongly to the external environment and domestic conditions -- Bank lending picked up -- Progress in reforming the international financial architecture -- Prospects for private debt flows -- Notes -- References -- Annex: Commercial Debt Restructuring -- Chapter 3 Shifting Forms of Equity Finance for Developing Countries -- Trends in FDI flows in 2003 -- The shifting composition of FDI toward services -- Trends in portfolio equity flows to developing countries -- Why portfolio equity flows are so much smaller than FDI and debt flows -- Prospects for 2004-2005 -- Annex A FDI Forecasting Model -- Annex B Top 25 International Equity Deals in 2003 -- Notes -- References -- Chapter 4 The Changing Landscape for Official Flows -- Recent trends in official flows -- Prospects for a rise in official aid -- Strategic considerations and aid flows -- Progress in raising aid effectiveness -- The Heavily Indebted Poor Countries Initiative -- The growing importance of international civil society in development -- Notes -- References -- Chapter 5 Financing Developing Countries' Trade -- Evolution in the sources, magnitude, and methods of trade finance -- Access of less creditworthy borrowers to trade finance.

Trade finance in times of crisis -- Notes -- References -- Chapter 6 The Challenge of Financing Infrastructure in Developing Countries -- The changing balance between the public and private sectors -- Recent developments in private external financing -- Unlocking the potential of the global capital markets -- Notes -- References -- Appendix A: Enhancing the Developmental Effect of Workers' Remittances to Developing Countries -- Appendix B: Summary Statistical Tables -- Tables -- 1 Net capital flows to developing countries, 1997-2003 -- 2 Net private capital flows to developing countries, 1997-2003 -- 1.1 Global outlook in summary, 2002-2006 -- 1.2 Financing of U.S. current account deficit, 1999-2003 -- 1.3 Export revenues of developing countries, 2000-06 -- 1.4 Developing-country growth, 1991-2006 -- 1.5 Growth in Europe and Central Asia, 1991-2006 -- 1.6 Growth in South Asia, 1991-2006 -- 1.7 Growth in East Asia and Pacific, 1991-2006 -- 1.8 Growth in Sub-Saharan Africa, 1991-2006 -- 1.9 Growth in the Middle East and North Africa, 1991-2006 -- 1.10 Growth in Latin America and the Caribbean, 1991-2006 -- 2.1 Net debt flows to developing countries by region, 2000-03 -- 2.2 Gross market-based debt flows to developing countries, 2000-03 -- 2.3 Declining severity of contagion over time -- 2.4 Selected indicators of debt burden, 1997-2003 -- 2.5 Net bank flows to developing countries, 2001-03 -- 2.6 Average spreads on medium- and long-term announced loans, 1999-2003 -- 2.7 International claims of BIS-reporting banks -- 2.8 Covenants of bond issues with CACs -- 3.1 Net FDI inflows to developing countries, 1997-2003 -- 3.2 Estimates of South-South FDI flows to 30 developing countries, 1995-2001 -- 3.3 Average share of services in FDI flows and in GDP -- 3.4 FDI in services, by investment climate in selected economies.

3.5 Composition of FDI by region, 1995-2002 -- 3.6 Net inward portfolio equity flows to developing countries, 1995-2003 -- 3.7 Forecast for equity flows to developing countries, 2002-05 -- 3A.1 Regression results of FDI forecasting model -- 4.1 Net official development assistance, 1990-2002 -- 4.2 Net official financing of developing countries, 1990-2003 -- 4.3 Aid commitments and announcements after the Monterrey Conference, March 2002 -- 4.4 Net ODA to Afghanistan and neighboring countries, 1998-2002 -- 4.5 Quality of governance, institutions, and public services during the 1990s -- 4.6 Debt indicators for HIPCs that have reached decision point -- 4.7 Aid from private voluntary organizations, 2001 -- 5.1 Ratio of officially supported export credits to imports -- 5.2 Use of trade credit before and after East Asian crisis of 1997-98 -- 6.1 International investment in developing countries' infrastructure as a share of total gross domestic capital formation, 1992-2003 -- 6.2 Infrastructure bond issuance, 1994-2003 -- 6.3 Total global international bank lending and bond issuance, 1990-2003 -- Figures -- 1 Net financial flows to developing countries, 1992-2003 -- 2 Developing countries' current-account balance, 1997-2003 -- 3 Spreads on emerging-market bonds, January 2002-February 2004 -- 4 Global current-account balances, 2003 -- 1.1 Contribution of investment to global GDP growth, 1998-2006 -- 1.2 Corporate profits in Japan and the United States, 2001-04 -- 1.3 Short-term interest rates in the Euro zone, Japan, and the United States, 2001-04 -- 1.4 Long-term interest rates (10-year government bond yields) in the Euro zone, Japan, and the United States, 2001-04 -- 1.5 Net financial flows to the United States, 2000-03 -- 1.6 GDP growth in low- and middle-income and high-income countries, 2002-03.

1.7 Contributors to GDP growth in developing countries by demand component, 2002-03 -- 1.8 Growth in imports and exports of goods and nonfactor services, 2003 -- 1.9 Global import growth and developing countries' contribution, 1998-2003 -- 1.10 Sub-Saharan African oil production as a share of world oil production, 1994-2003 -- 1.11 Volatility of export growth in Latin America and the Caribbean, 1971-2003 -- 2.1 Debt flows to developing countries, 1995-2003 -- 2.2 Yields on debt to developing and developed countries, 1990-2003 -- 2.3 Distribution of daily change in spreads, Jan. 1998-Oct. 2003 -- 2.4 U.S. corporate profits, 2000-03 -- 2.5 Spreads on developing countries and on developed-country high-risk debt, 1990-2003 -- 2.6 Quality of developing-country credit, 1998-2003 -- 2.7 International reserves of developing countries, 1993-2003 -- 2.8 Growth in private debt and share of bank lending in private debt, 1971-2002 -- 2.9 Credit default swap spreads for all developing countries and selected regions -- 2.10 Emerging market spreads, 2002-04 -- 2.11 Episodes of compression in developing-country spreads, 1993-2003 -- 2.12 Decline in developing-country spreads by credit-risk category -- 2.13 Bond issuance from developing countries, 2002-03 -- 2.14 Sovereign bond issuance, 1997-2003 -- 2.15 Breakdown of bond issues by type of borrower, 2003 -- 2.16 Average spreads on new bond issuance, 1991-2003 -- 2.17 Cross-border claims of BIS-reporting banks, 1995-2003 -- 2.18 Foreign lending of Japanese banks to developing countries, 1983-2003 -- 2.19 Foreign lending of U.S. banks to developing countries, 1983-2003 -- 2.20 Lending of BIS-reporting banks to developing countries, 1983-2003 -- 2.21 Local-currency claims and liabilities in developing countries, 1983-2003 -- 2.22 Spanish banks' foreign and local currency lending to developing countries, 1985-2003.

2.23 International bank lending to Africa, 1983-2003 -- 3.1 Net inward FDI flows to developing countries, 1995-2003 -- 3.2 FDI inflows to the world and developing countries, 1997-2003 -- 3.3 Privatization and M&A in developing countries, 1995-2003 -- 3.4 FDI as share of GDP in developing countries, 1995-2003 -- 3.5 Regional shares in FDI -- 3.6 Sectoral composition of FDI stock in developing countries in 2002 -- 3.7 Indexes of restrictions on FDI in selected sectors of advanced economies -- 3.8 The recent decline in FDI in the Latin American service sector -- 3.9 Repatriated earnings and called intercompany loans in Argentina and Brazil -- 3.10 Composition of FDI flows in developing countries, 1995-2002 -- 3.11 Decline of intercompany loans versus equity component of FDI during financial crises -- 3.12 Intercompany loans and private debt flows in Brazil, 1990-2002 -- 3.13 U.S. reinvested earnings and income in OPEC mining sector, 1995-2002 -- 3.14 U.S. reinvested earnings and income in selected regions, 1995-2002 -- 3.15 Portfolio equity flows, 1990-2003 -- 3.16 Gross equity flows to developing countries and emerging-market stock prices -- 3.17 Sectoral composition of gross flows in 2003 -- 3.18 Currency composition of gross flows in 2003 -- 3.19 Number of listed stocks on selected developing-country exchanges, by region -- 3.20 Stock market performance in the United States, Europe, and Japan -- 3.21 Equity issuance by public and private sector firms, 1990-2003 -- 3.22 The rise in M&A and the decline in portfolio equity flows, 1994-2002 -- 3.23 Market capitalization as share of GDP -- 3.24 Annualized volatility in developed- and developing-country stock and bond markets, 1990-2003 -- 4.1 Net official development assistance to developing countries, 1990-2002 -- 4.2 Geographical distribution of IBRD prepayments, 2002.

4.3 Geographical distribution of official development assistance from the European Union, 2002.