Benin has published its analytical report detailing the results of its first national survey on foreign private capital flows and investor perception. The report is now available online (in French only).

This Central Bank report presents data captured in a series of quarterly surveys, which recently replaced the annual foreign assets and liabilities surveys. It covers stocks and gross transactions for 2007-8 split into loans and credits from related companies (a component of FDI), supplier credits from unrelated entities, and loans from unrelated entities. Other breakdowns include maturity, sector of economic activity, and source country.

The Central Bank's latest report presents stocks and transactions data to Q1 2010, for FDI, portfolio, other investment, remittances and related income. FDI is presented by sector of economic activity and source country, and private sector debt by term for financial and non-financial sectors. The annex gives a BOP series for 2003 – Q1 2010.

This report focuses on the development impacts of improved access to information and communication technologies. Drawing on examples from countries such as The Gambia, Ghana, Kenya, Nigeria, Tanzania and Uganda, it identifies new opportunities especially for SMEs to develop their businesses and livelihoods, reduce information search and transactions costs, and benefit from improved market efficiency.

Quantitative indicators of the quality of governance in developing countries and emerging economies have greatly proliferated since the mid-1990s. The main users of these indicators are international investors, official development agencies, journalists and academics. The most widely used, and misused, governance indicators are composite perceptions-based indicators. This paper argues that even the most carefully constructed composite indicators have limitations their users seem widely to ignore. Greater transparency is required both in the production and in the use of governance indicators.

Global investment Trends Monitor #4 finds that global FDI has stagnated in 2010 after slow recovery in 2009, and does not appear to be filling the gap created by reduced stimulus packages. Transnational corporations in response to disappointing economic news and turmoil in sovereign debt markets, have reduced their intra-company loans, and reinvested earnings tumbled as firms repatriated a larger share of the earnings of their foreign affiliates. Developing and transition economies experienced smaller decreases. Cross-border M&As show a gradual rebounding, but greenfield investments declined, suggesting that prospects for a sustained FDI recovery are still uncertain. Risks include currency wars and trade protectionism.

A joint World Bank, IMF, UNCTAD and DFI medium term debt strategy mission to Bangladesh was conducted from September 20th to the 30th. The mission focused on helping to build Bangladesh capacity to conduct a MTDS. The mission inter alia conducted a three day training program and concluded with a thoughtful presentation by the Treasury and Debt Management Wing (TDMW) on debt strategy and a presentation by the mission on policy issues.

DFID has committed to intensify its work to stimulate the private sector to become a much bigger engine of growth in poorer countries. Measures include: a new Private Sector Department; boosting private investment (with business experts seconded in as advisers); encouraging reduced barriers to growth (a level playing field for all investors, fairer and more open trade, easier market entry, and streamlined regulation); CDC reform (regaining its power to invest directly, lend and provide guarantees where development need is greatest with less reliance on fund managers; and push for a successful conclusion to the Doha trade negotiations. CDC is set to play a key role: DFID will set up an external consultation about how its capital should be targeted, and publish the results early next year.

Ministers called for acceleration of remaining HIPC relief, automatic cancellation of debts for any country hit by major natural disasters, and presentation of proposals for a more comprehensive, transparent and impartial debt relief process to the next G20 meetings. They also stressed the need for urgent action to mobilise more innovative financing, especially financial sector taxes, and to improve low-income country representation in the G20. For the full communiqué, click here.

GFSR October 2010 is now available. Chapter 1 analyses challenges to advanced countries as they deal with slower recovery, higher debt levels and rollovers, and a still-impaired financial sector. Chapter 2 examines the increased vulnerability of banks to funding in the wake of the simultaneous and protracted inability to roll over or obtain new short-term funding across markets and borders. Chapter 3 examines the financial stability implications of credit rating agencies in light of the recent escalation of sovereign credit risk, and ratings downgrades of structured credit instruments.