Official Financial Flows
Official financial flows originate with government entities, including individual governments and inter-governmental organizations. There are two basic kinds of official financial flows to developing countries: official development assistance (ODA) and multilateral organizations' loans. This approach would require you to join the World Bank, Asian Development Bank, and International Monetary Fund.
You have made a series of choices as the Secretary of Economic Development of Kashmir. Let's analyze each of your choices.
The Washington Consensus model of economic development champions unregulated liberal capitalism. The competition drives your domestic firms to continuously innovate and charge lower prices. Some unprotected firms will get priced out, and Kashmir will experience economic volatility sometimes. Overall, your domestic economy will grow and improve over time.
Export-led growth is a market-accepting strategy that embraces international linkages, while helping firms that export goods to the world economy. This was the strategy of choice among the four Asian Tigers of Taiwan, South Korea, Singapore, and Hong Kong. All benefitted greatly from the development opportunities of economic intergration, including access to technology, labor, capital, and managerial expertise. At the same time, domestic firms were able to compete with the rough international competition through subsidies and preferential access to foreign currency. You can expect the same success with Kashmir.
Official financial flows will give your government access to foreign capital that you can then invest in domestic firms. Bilateral official development assistance (ODA) will help your government avoid a poverty trap, but may foster an over-reliance on international actors for domestic investment. That being said, ODA will help your economy grow (as long as the funds are not in the hands of corrupt politicians) with little risk of hamstringing Kashmir with devastating repayment terms. Loans from multilateral institutions will prove valuable when you need foreign capital in time-sensitive situations, but may hurt Kashmiri development in the long run given their harsh conditions and repayment terms. Overall, your domestic economy will benefit from official financial flows, but you may become too dependent on these sources of capital.
Overall, you have done a good job as the Kashmiri economy will likely grow fairly significantly, but your financial flow choices mean your domestic firms do not have maximized access to capital.