Emerging economies have been strikingly successful in raising equity finance in the form of foreign direct investment, which accounted for almost half of the private capital they imported in 2005.

ECONOMIST: Shares in emerging economies

The boom came to a halt in 1993 when the then Conservative government, worried by the rising cost to the exchequer, stopped providing direct finance for unlimited numbers of places in care homes, and instead gave fixed grants to local councils.

ECONOMIST: Care homes

But if eurozone finance ministers did not want to become direct shareholders in Cypriot banks, via the ESM, why didn't they replicate what they had done for Spain and simply lend what Cyprus's banks need to the government in Nicosia?

BBC: Cyprus and the eurozone's survival

That means India needs more foreign capital to finance its government obligations because it is not bringing in enough money from exports or foreign direct investment into the country.

FORBES: India Spending More Than It's Taking In