How a country manages its domestic affairs is the principal factor affecting its rate of domestic saving, its export performance, its attractiveness to foreign private capital, and its overall social returns from investment in the public and private sectors. Acknowledging the primacy of domestic policies in the Third World does not, however, relieve the industrial countries of their responsibilities for helping the poorer nations to realize more fully their economic potential. Sound domestic economic management is a necessary condition for satisfactory growth, but not a sufficient one in most developing countries. Adequate access to foreign capital on appropriate terms and a favorable world economic environment are also essential.