The recent net flow of capital toward the industrial world is not in the long-term interest of the developing economies, according to many economists. To increase incomes and reduce poverty, the developing economies must boost their productivity, and that, in turn, will require complementing their large and growing labor forces with increasing amounts of capital. The net flow of capital bank toward the developing economies can be best achieved by improving the environment for business investment, strengthening domestic financial systems, and encouraging the development of more attractive financial instruments. At the same time, industrial countries will have to address the implications of their consumption and saving patterns and especially government entitlement programs (Medicare, Social Security, and Medicaid) in view of an aging population.