For much of the last 30 years the global economy has had a limited impact on poverty alleviation. But there are now grounds for optimism. Presently, global liquidity is ample, pushing investors into parts of the world they previously avoided, and private investment is rising. A new and more positive chapter has begun in Africa's debt story and aid flows have started to rise again after years of stagnation. Yet progress remains tentative, global liquidity and private investment could contract and the recent growth in aid is not enough. Very poor countries still receive too little private capital.
This book explores how international finance can serve the needs of poor countries and poor people, including chapters on multilateral development assistance, multiactor global funds, and the transition from ODA to private capital flows. Containing contributions from a wide range of economists and political scientists, including some who have been at the centre of the international policy debate, this volume is an essential companion for all scholars and policymakers in this important area.
The publication of this book on development finance is most timely, and should contribute to the major international conferences in 2008 considering financing for development issues. It significantly advances new thinking, especially on aid and new sources of development finance.
—Jomo Kwame Sundaram, UN Assistant Secretary General for Economic Development
Since the UN Monterrey conference in March 2002, the international structure of financing for development has changed profoundly. This volume, which extends UNU-WIDER's work in this field, provides a timely update and analysis of the developments in key areas of development financing – foreign direct investment, debt, financing from the Bretton Woods institutions, official development assistance, and the so-called innovative sources of international financing.
—Manuel F. Montes, Chief, Policy Analysis and Development, Financing for Development Office, UNDESA
Comprising outstanding contributions by well-known economists, this book takes the debate on development finance a step further: the focus is on emerging issues in aid delivery and effectiveness — multilateral aid vis-à-vis bilateral aid, the contribution of aid in the provision of international public goods, the role of Multi-actor Global Funds, and the impact of recently introduced Millennium Challenge Account by the USA. The book does an excellent job of presenting a balanced and appropriately nuanced assessment of these issues and complements other volumes on new sources development finance.
—Sanjeev Gupta, Senior Advisor, Fiscal Affairs Department, IMF
An excellent account of the current state of affairs in development finance.
—Yilmaz Akyüz, Former Director, Division on Globalization and Development Strategies, UNCTAD
This interesting, balanced and well-argued new book is a timely reminder of the risks and challenges of current financial arrangements. Abundant liquidity, cheap credit and high commodity prices may not last forever. The current reality of a high concentration of private financing in a handful of emerging economies and the often cumbersome process of foreign aid to low-income nations is far from optimal. The book reviews alternatives, discusses new financial schemes to support development and warns against unwarranted financial optimism. Highly recommended.
—Andrés Solimano, Regional Advisor, UN-ECLAC, and editor of The International Mobility of Talent
TONY ADDISON is Executive Director of the Brooks World Poverty Institute and Professor of Development Studies, University of Manchester, and Associate Director of the Chronic Poverty Research Centre (CPRC). His publications include Debt Relief for Poor Countries, Fiscal Policy for Development, and From Conflict to Recovery in Africa.
GEORGE MAVROTAS is Chief Economist of the Global Development Network. Prior to that he worked for UNU-WIDER as a fellow and project director and was on the economics faculties of the Universities of Oxford and Manchester. He has published extensively in development economics and development finance including Commodity Supply Management by Producing Countries, Advancing Development: Core Themes in Global Economics, Domestic Resource Mobilization and Financial Development and Financial Development, Institutions, Growth and Poverty Reduction.