Graph 1 Capital Inflows and Current Account Deficits percentage of GDP  10 9  Chile,1978-81  8 7  Philippines, 1978-83  6  Thailand,1978-84  5  Venezuela, 1992-93  Malaysia,1980-86  Mexico,1989-94 Mexico,1979-81  Thailand,1988-94  4  Malaysia,1989-94  Philippines,1989-94  3  Indonesia  2  Argentina, 1992-93 Argentina, 1979-82  Venezuela,1975-80  Chile,1989-94 Colombia  1 0 Brazil  -1  0  1  2  3  4  5 6 7 8 9 Private Capital Inflow  10  11  12  13  Source: World Bank 1997, p. 243  BIS Review 96/1998  -2-  Table 1: Capital Flows to Emerging Markets (Annual averages, $ billion) 1977–82  1983–89  1990–94  1995  1996  1997  All emerging markets Total net capital inflows Net foreign direct investment Net portfolio investment Other*  30.5 11.2 –10.5 29.8  8.8 13.3 6.5 –11.0  120.8 46.2 61.1 13.5  192.0 96.0 23.5 72.5  240.8 114.9 49.7 76.2  173.7 138.2 42.9 –7.3  By region Asia Western Hemisphere Other  15.8 26.3 –11.6  16.7 –16.6 8.7  40.1 40.8 39.9  95.8 35.7 60.5  110.4 80.5 50.0  13.9 91.1 68.8  * Includes bank lending.
1977–89 figures exclude economies in transition and some Middle Eastern emerging markets. Source: IMF 1995, p. 33 IMF 1998, p. 13. Two things stand out from this overall picture. First, the extraordinary increase in the flows starting in 1990, with this increase being truly phenomenal in Asia.