After all, before the Crisis those who ran Indonesia gorged at tables heaped with private foreign capital.
It has no prospect of attracting private foreign capital in the near future.
In the early 1990s, the Asian miracle economies received a large inflow of foreign private capital on account of the financial liberalization they undertook and their economic success.
The dramatic turnaround in trade balances, combined with loans from the International Monetary Fund and a cautious resumption of private capital inflows, has allowed some governments to start rebuilding foreign reserves.
Many U.S. and foreign companies are now raising U.S. capital through private placements that skirt Sarbanes-Oxley's onerous rules.
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.
Indeed, when foreign capital stampedes, its impact on the balance sheets of banks and private enterprises, when they have large unhedged foreign liability, can be devastating, as seen in East Asia.
Both recognize that in addition to foreign assistance, other development tools such as sound policies, private capital and trade are necessary to strengthen the economies of low income countries.
Gaurav Dalmia of First Capital India, a private-equity boutique, says this ranges all the way from big foreign funds negotiating equity stakes in large Indian public companies to Indian entrepreneurs returning from Silicon Valley to put their money into tech start-ups.
New restrictions on private-sector capital-account transactions mean that they are unable, for the moment, to pay their foreign creditors.
China, which has no lack of capital and a tendency quickly to create overcapacity in any successful business, still has many foreign private-equity firms wondering how to make money there.
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