Development Finance in the Global Economy

The Road Ahead

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.


'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 K.S., UN Assistant Secretary General for Economic Development

'An excellent account of the current state of affairs in development finance.' - Yilmaz Akyüz, Former Director, Division on Globalization and Development Strategies, UNCTAD

'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