The volume of capital flows between industrial and developing countries has grown dramatically in the past decade and has become a major issue in a world that is increasingly 'globalised'. Here, two experts on this topic have assembled a group of scholars who address different types of capital flows - bank lending, bonds, direct foreign investment - and the implications they hold for economic performance. With its particular focus on the Asian financial crises, this work presents a new model which is concerned with the role of private capital flows.