ABSTRACT
This chapter examines possible changes in the international system of resource transfer that might help to do so. In the 1970s the low-income countries obtained very little commercial finance. The drop in share of external finance received by low-income countries was due to their low share of commercial loans, during a period when these became an increasingly important part of total flows. The World Bank states that they could only be financed with a higher level of aid and a greater proportion of that aid going to low-income countries. Re-direction of international bank for reconstruction and development loans could make a substantial contribution, providing low-income countries with finance on better terms than export credit bank lending or co-financed loans. For non-concessional flows, the increase in access would be mainly for the richer of the low-income countries, and for middle-income countries which are currently getting rather little commercial finance.
