Popular equity investments, such as shares in Safaricom, are already trading at unexpectedly low levels.

Capital controls and fiscal incentives will keep legitimate private capital at home and promote domestic investment.

The state owned sector makes up 33.3 of the economy, the private sector 4.6 , and the remainder in foreign investment.

The temptation to cut long term investment in economic hard times stalks the private sphere as well.

So China is stuck in a currency creating cycle GDP growth encourages investment, which boosts demand for capital.

Indeed, these private funds account for about two thirds of all new debt.

But in bad times, when it is important to keep banks lending, bank capital would automatically be increased by the debt to equity conversion.

Private capital in its present state is not able to understand the interests of society as a whole.

Reflecting flawed economic arguments, India embraced autarky in trade and rejected inflows of equity investment.

Strip out all this non tradable equity and what is left is a market worth about 145 billion (around 12 of GDP) at the end of 2002. The equivalent figure in developed markets is usually over 100 of GDP.

Banks often oppose higher equity asset ratios, because equity capital is more expensive than debt capital.

Strip out all this non tradable equity and what is left is a market worth about 145 billion (around 12 of GDP) at the end of 2002.

Private capital cruelly insists on the viewpoint that the State must not intervene in the economy.

Central banks and finance ministries are also complicit, since debt gets bailed out far more aggressively than equity does. But, contrary to populist rhetoric, it is not just rich, well connected bondholders who get bailed out.

In this context, potential growth may well fall back to the predicted 2.5 annual rate, even though the economy s capital stock is in good shape.

Central banks and finance ministries are also complicit, since debt gets bailed out far more aggressively than equity does.

With the creation one year ago of a 200 billion sovereign wealth fund, the China Investment Corporation, Beijing positioned itself for more equity investment (although its early investments, in the Blackstone Group and Morgan Stanley, were widely criticized).

Meanwhile, higher public spending on capital investment and other special procurements will boost domestic demand.

Much needed capital investment can enable smallholder farmers to provide the private sector with a sustainable supply of high quality agricultural produce.

Regulators might consider imposing pro cyclical equity requirements increasing the equity percentage in boom times in order to offset losses in the inevitable bust times.

Today s financial firm equity and bond holders must bear the main cost, or there is little hope they will behave more responsibly in the future.

Investment banks like Bear Stearns and Lehman Brothers got into trouble because they had too little equity capital far less than 10 .

The Lehman Brothers bankruptcy created an extraordinary and immediate demand for additional bank capital, which the private sector could not supply.

The United Nations Millennium Project involves a large scale, coordinated big push of investment in human capital, public infrastructure, and agricultural technologies.

Private sector

Instead, it needs to invest in the region s human capital and share Indian know how.

This strategy should include significant investments in human capital education, training, and basic scientific research.

He's a private detective.

He's a private dick.

The key is to reflect on six kinds of capital goods business capital, infrastructure, human capital, intellectual capital, natural capital, and social capital.

Carbon finance is an effective vehicle for channeling funds for climate friendly investments, including to the developing world. Last year alone the size of the world carbon market tripled to over 30 billion, of which about 20 percent went to projects in the developing world.

Carbon finance is an effective vehicle for channeling funds for climate friendly investments, including to the developing world.

So China is stuck in a currency creating cycle GDP growth encourages investment, which boosts demand for capital.

A tax could be imposed, say, at the rate of 90 , on the excess gains from the acquisition of state assets e.g., on gains in excess of 10 cumulative returns on original equity investments.

I have a private teacher.

This isn't a private beach.

Investment in the human capital of new cohorts (which is largely accumulated on the job) would benefit employers by increasing productivity.

Thereupon, we should ask ourselves whether private capital has no influence, or whether it actually leads politics and thereby the whole country, for its own selfish ends.

Rather than holding an investment in our bodies, we re all at risk of becoming capital my body, but somebody else s capital.

But we need to remind ourselves that housing investment accounts for about 30 of China s total fixed investment, with much of the rest directed toward infrastructure that is, long term, durable public infrastructure investments including subways, railways, highways, urban public facilities, and the national water system.

This capital does not finance investments or fuel economic growth its sole purpose is to reap enormous but unpredictable profits for a select few.

Capital Shrugged

Damming Capital

The funds are sorely needed.

What should the private sector do better?