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Foreign finance for private sector development (PSD) has become
popular with the donor community and in multilateral development
policy fora, seen as an antidote for recipient economies' aid
dependency and a way of accomplishing growth, poverty reduction and
empowerment. This book analyzes the pattern of foreign finance for
PSD and examines multilateral and bilateral donors' practices in
PSD financing, giving special attention to microfinance and
microenterprises. It also models and explains private capital flows
from developed to developing countries and reverse flows in the
form of capital flight.
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