region and the Caribbean, where the current account deficit is expected to be nearly zero in 1990, implying a continuation of large trade surpluses. 107. Such projections imply heroic assumptions about trade, protectionism, debt- servicing, private banks' behaviour, international interest rates, and policies in major countries. They also imply the expectations that the mix between adjustment and financing will be tilted in the direction of more adjustment and less financing for the remainder of the decade. 108. The Committee does not agree with this assessment, which implies that indebted countries will be able to export their way out of debt in the second half of the 1980s in spite of severe financial restraint. Such an expansionary solution is only possible if there is a significant increase of international resource flows for development, given the limitations of foreign direct investment and the change in commercial banks' perceptions. The case for more finance for development is thus a case for more official multilateral lending which calls for a renewed consensus for growth and stability in the industrial countries and economic and social development in poorer countries. 109. As appears from this overview of the sources of financial flows to developing countries, there is a strong likelihood that thOse flows will in the future be lower in real terms than in the past and will grow more slowly. If these prospects come true, it will mark the end of a chapter in international development, in which reliance on external finance has been very heavy. It is fashionable today to suggest that the capital flowing to developing countries, whether in the form of aid or loans, was largely dissipated and wasted. As many careful audits and evaluations have shown, however, that is simply not correct. Development 
**Analysis**
The text discusses the financial flows to developing countries, specifically the current account deficit, trade surpluses, debt-servicing, and the likelihood of lower financial flows in the future. It also touches on the need for official multilateral lending and a renewed consensus for growth and stability. Given these topics, it is likely that the text falls under the categories related to economic development and international trade.

**Category**
Economic development, International trade