Permanencia y viabilidad de las organizaciones privadas de desarrollo y sus fuentes de recursos

The paper examines the advantages and disadvantages of domestic (commercial bank loans and deposit mobilization) and foreign (concessionary loans and grants) sources. Domestic resources appear to contribute more to viability than foreign funds from donors. Despite low interest rates, foreign funds are unreliable, impose high transaction costs, and do not promote self sufficiency. They are preferred, however, by rent-seeking organizations more interested in capturing the subsidy than in financial viability. (Author abstract)