Because of the financial crises that began in the mid-1990s, developing and emerging economies are unable to attract private capital flows.

Question

Quizplus · Accepted Answer

This statement is not entirely true. While the financial crises did have a negative impact on private capital flows to developing and emerging economies, countries with sound economic policies and favorable investment climates are still able to attract private capital. Additionally, the growth of new financial technologies and investment vehicles has made it easier for investors to access these markets.

Because of the Financial Crises That Began in the Mid-1990s