Only when combined with the appropriate mix of human ingenuity and technology, along with a supportive policy and institutional environment, can they make a major contribution. One way of stimulating this environment is by encouraging foreign investment. Total capital flows to developing countries tripled between 1987 and 1994. In real terms ODA fell by 9 percent. The stagnation of ODA is especially unfortunate since, for the poorest and least developed countries, it remains the main form of foreign exchange support and the largest source of financing for public expenditures.
Aid is also one of the most direct ways of investing in human development.
In Burundi aid provided 56 percent of total expenditure on health and education in 1988. Also concentrated is foreign direct investment, which does more than provide fresh capital-it also brings higher levels of technology. Nearly 40 percent of this went to China. Sub-Saharan Africa received only 3.6 percent.