The World Bank will launch Global Development Finance 2005 in Beijing on April 6, with the theme of mobilizing finance and managing vulnerability.

The theme embraces three key challenges: (i) Managing the vulnerability inherent in global economic and financial imbalances, (ii) Confronting the risks posed by the new complexities in developing country debt, and (iii) Mobilizing and diversifying sources of finance for low-income countries with more limited access to international capital markets.

In 2004 capital flows to the developing world reached levels higher than at any time since the crises of the 1990s. Low international interest rates allowed developing countries to restructure their debt on favorable terms. They also provoked a search for higher yields among international investors, whose appetite for risk was sharpened by the growing ability of capital markets to gauge risk in individual countries. Stronger creditworthiness ratings in many developing countries, reflecting improved macroeconomic, fiscal, and regulatory policies, contributed to investor confidence.

For the poorest countries, which lack ready access to market-based finance, official development assistance remains the most important source of external finance. But other capital flows and nontraditional sources of foreign exchange—workers' remittances, grants from nongovernmental organizations, and aid from middle-income countries—have risen in importance.

The media are invited to attend the press launch of Global Development Finance 2005 "Mobilizing Finance and Managing Vulnerability" in Beijing. The report will be presented by Uri Dadush, Director of the International Trade Department and head of the Development Prospects Group, and Hans Timmer, Lead Economist, Manager Global Trends, Development Prospects Group.

                Event: Launch of Global Development Finance 2005

                Time: 15:00 PM -16:30 PM

                Date: Wednesday, April 6, 2005

                Location: World Bank Office, Beijing

                               16th Floor, China World Tower 2

                               No. 1 Jianguomenwai Avenue

                               Beijing

                Contacts: Li Li, 5861 7850

                               Lli2@worldbank.org

(China.org.cn March 28, 2005)