Over the past decade, the flow of foreign capital to developing countries has declined precipitously. The author examines the structural adjustments and policy reforms that have occured in response to the reduction in foreign capital inflows to some developing countries in Asia and the Pacific....

After reviewing recent trends in saving behaviour in several Asian countries, the author examines financial market imperfections, misguided fiscal policies, overpopulation and foreign debt build-up in these countries. He points out two important deterrents to national savings, population growth...