Private investment plays a crucial role in economic growth, being more efficient and productive than public investment. Recent data shows that private investment has a stronger link to long-term economic growth than public investment. In developing countries, private investment has been increasing steadily, reaching a record high in 1998 at 14.3% of GDP. In contrast, public investment has been decreasing, dropping to only 7.0% of GDP in the same year, the lowest level since 1974.