Returning to Investment
Conventional wisdom holds that household savings will flow to companies that can best put the money to productive use. But in many developing countries, easier access to finance has not led to more financing for long-term investments, because corporations are using profits to please their shareholders by increasing dividends.
GENEVA – At the G20 summit last month in Hangzhou, China, world leaders outlined an ambitious plan for a “new era of global growth.” But they left out a key ingredient: fixing the investment climate.