P. whereas private capital flow affects developing countries in many different ways, positive as well as negative; whereas financial flows to developing countries from private sources are significant but largely volatile, unevenly distributed and often associated with outflows such as profit repatriation, which since 2010, have exceeded new inflows of FDI;

P. whereas private capital flow affects developing countries in many different ways, positive as well as negative; whereas financial flows to developing countries from private sources are significant but largely volatile, unevenly distributed and often associated with outflows such as profit repatriation, which since 2010, have exceeded new inflows of FDI;

6. Warns against continued disproportionate, across-the-board and badly targeted austerity measures undermining investment capacities of key economic players; strongly believes that European ‘project bonds’ can help unlock further financial resources to fund targeted European growth and innovation policies, to trigger the flow of private capital into real investment, and to safeguard the stability of the euro area and the sustainable coordination of the Member States’ budgetary discipline; expects the EC and the EIB to do their utmost to ensure a swift and successful implementation of a pilot phase in 2012-2013; r ...[+++]ecalls that the EU budget contribution remains capped and strictly limited and does not create any extra contingent liability on the EU budget; calls on the Commission to establish a sustainable growth and anticyclical facility of 1 % of GDP/year for 10 years;

Private capital flows to developing countries are on the rise.

We are charting a new path in our region, one where the private sector is a full participant where trade can be open and free and private capital can flow and, most importantly, we are investing in human resource development, including upgrades in educational and training standards.

1. Investment guarantees are an increasingly important tool for development finance as they contribute to reducing project risks and inducing private capital flows.