Development Finance in the Global Economy: The Road Ahead

Abstract

In 1795 Immanuel Kant proclaimed that the peoples of the earth have entered into a "universal community". Since Kant wrote this the processes of inter-connection between the peoples of the earth has grown even more pronounced and the notion of "cosmopolitics" has thus come to seem a defining one for the contemporary age. As such this volume makes a timely contribution to contemporary debates about international law, global ecology and economy and transnational synergies. The volume is inter-disciplinary and is intended to be a contribution to a debate that crosses borders and disciplines. Review: 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-a-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 Akyuz, 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. --Andres Solimano, Regional Advisor, UN-ECLAC, and editor of The International Mobility of Talent