Compared with the mid-1990s, private capital flows to emerging economies have all but collapsed.

ECONOMIST: Uncertain prospects

But when confidence collapsed, private capital flows to these economies not only stopped but reversed.

CNN: VIEWPOINT

In a world where private capital flows to poor countries dwarf official assistance, development banks should do what markets cannot or will not do.

ECONOMIST: Slimming the Bretton Woods duo

Economic recovery depends partly on domestic policies, but also on external factors and especially on commodity prices, output growth in rich countries and the size of private capital flows.

ECONOMIST: Uncertain prospects | The

Many others, however, think that this architecture could be more efficiently organized in a separate institution for private capital flows, somewhat akin to the World Trade Organization on trade issues.

CNN: VIEWPOINT

Brazil, Chile and Mexico have all seen their economic prospects brighten during the past year as commodity prices rose, rich-country economic growth strengthened and private capital flows to emerging markets resumed.

ECONOMIST: Floating with an anchor

Other forecasters, such as the Washington-based Institute of International Finance, which represents banks and other institutional investors, also expect private capital flows in 1999 to remain close to their levels of 1998.

ECONOMIST: Uncertain prospects

With private capital flows from rich countries to developing countries drying up in the wake of the Asian financial crisis, the World Bank's role in fighting the spread of poverty has been reinforced.

BBC: What is the World Bank?

So did the volatility of private capital flows.

CNN: VIEWPOINT

The principal case for this is based on the assumption of a divergence between social and private risks associated with capital flows.

CNN: VIEWPOINT

The Institute of International Finance, a bankers' group, expects a 30% decline in net flows of private capital from last year.

ECONOMIST: The financial crisis

In his paper "Private Equity Performance: Returns, Persistence and Capital Flows, " published a few years ago with Antoinette Schoar of MIT, Kaplan suggests that private equity returns are worst when fundraising is strong.

FORBES: Time To Invest In Private Equity?

Vietnam's government has responded to all of this by encouraging the growth of the private sector, and by trying to diversify its trade and capital flows, notably through the deal with America.

ECONOMIST: Hanoi Bill