3. Achlevlng the oDA target by 1990 125. Thi6 scenario assumes that the DAC counEries of oECD would systenatlcally expand their ODA trangfers to developing countries, starting ln 1985, in order to reach the 0.7 per cent of cNF target by 1990 and that the increased ODA would be financed by increaaed tar revenues (in the case of the Fugi Model) or reduction in defence expenditure (in ehe case of project LINK) in |[ost developeal countries. the Fugi results ahoe that, a6 a reEult of increased ODA transfer, cDP gro$th ratea of the developed and developlng countrieG wouLd be enhanced above the baselineprojectlons, by 0.02 and 0.15 percentage points respectively (see table 22). I25. In the case of lhe LINK simulation, it is assumed that the transfer of ODAfunds, estimateal at $5.9 billion tn L985 rising in a more or less linear fashlonto $53.9 billion in 1990, nill be distributed to the indlvidual developing countriea in proportion to thetr 1983 shares. The results of Chis tran6fer scenario shoir'world trade expanding, on average, by 0.4 percentage points above the baseline for the perlod 1985-1990. Tbe cDP growth rate for the developing countr ies would be raised ln 1985-1990 by 0.3 percentage points above th€ baaellne, and that of Africa by no less than 1.4 percentage points (see tables 24 and 25), aclear indication of bhe potential effectiveness of this scenarlo for the least developed countrieg. 4. Increased direct private investment 127. This scenario, slmulated wlEh the Fugi ltodel, as8unes approprlate dooeatlcpolicies to encourage a substantial increase in direct prlvate investoent in developing countries. tlhe scenarlo does not take into account the effects ofprofit remittances that do not ariEe if all proflts are reinveghed in developingcountries. In this sioulation developed countries expand thelr direct forelqn
**Analysis**
The text discusses the impact of different scenarios on economic development, focusing on the transfer of Official Development Assistance (ODA) and direct private investment in developing countries. The scenarios aim to achieve specific economic goals, such as increasing the cDP growth rate and enhancing world trade.

**Category**
Economic development, International trade