New Delhi, Oct. 9 -- The international development-finance landscape is changing. Foreign aid is under pressure, borrowing has become more expensive, foreign direct investment (FDI) is increasingly concentrated, and developing countries face growing requirements for infrastructure, energy, climate adaptation, health, education and employment. The central issue is no longer simply how much external finance developing countries receive, but whether the composition of that finance strengthens their capacity to grow and generate the resources needed to service it.

South Asia's Diverse Economic and Debt Profiles

South Asia illustrates this transition particularly well. It would be misleading to describe the region as uniformly over-indebted ...