Graph 2: Concentration of Private Capital Flows  Graph 1: Developing Countries Net Capital Flows  1990-95  Billions of $ $  $  180  180  China Mexico Brazil  Private  Korea  120  120  Malaysia Argentina 60  60  Thailand  Official  Indonesia 0  0  Russia India -60  -60 1972  1977  1982  1987  1992  0  1997  Graph 3: Private Gross Capital Flows  20  40  60  80  100  120  140  Billions of $  % $  6  6  5  5  4  4  3  3  2  2  1  1  Direct investment  Portfolio investment 40  40  0  0  Other investment  -40  1980  1985  1990  0 1995  $  80  80  1975  180  Graph 4: Developing Countries Net Private Capital Flows  12 largest recipients of private capital, % of GNP %  0 1970  160  -80  1972  1977  1982  -40  1987  1992  -80 1997  At the same time as these large mutual funds were discovering the attractions of diversification, the financial infrastructure to implement this was also being put in place, mainly driven by international financial institutions searching out expansion opportunities.
They were encouraged in this by the general intellectual climate which promoted globalisation, and by the official international financial institutions (IMF, World Bank, and so on) who saw freeing up of 34 financial capital as an important part of the development process.