Development Finance in the Global Economy

PETER BURNELL Professor of Politics, Department of Politics and International Studies, University of Warwick, UKANTHONY CLUNIES-ROSS Retired Economist, University of Strathclyde, UKSIMON FEENY Postdoctoral research fellow, RMIT University, Melbourne, AustraliaJEREMY HEIMANS Research Associate, Global Economic Governance Programme, University of Oxford, UKRENU KOHLI Senior Economist, International Monetary Fund, New Delhi, IndiaJOHN LANGMORE Professorial Fellow, University of Melbourne, AustraliaROBERT LENSINK Professor in Finance and Financial Markets, University of Groningen, The NetherlandsMARK MCGILLIVRAY Deputy Director, UNU-WIDER; Honorary Professor of Development Economics, University of Glasgow, UK; External Fellow, Centre for Economic Development and International Trade, University of Nottingham, UK; Inaugural Fellow, Human Development and Capability AssociationSTEVEN RADELET Senior Fellow, Centre for Global Development, Washington, USAHELMUT REISEN Councillor, OECD Development Centre, Paris, France; Professor of Economics, Basel University, SwitzerlandMARCELO SOTO Researcher, Instituto de Análisis Económico, BarcelonaHELEN TOXOPEUS Analyst, ABN AMRO BankTHOMAS WEITHÖNER Counsellor for Cultural Affairs, German Embassy, BucharestHOWARD WHITE Independent Evaluation Group, World Bank

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

• Development Finance in the Global Economy: The Road Ahead; T.Addison &  G.Mavrotas Foreign Aid Resurgent: New Spirit or Old Hangover?; P.Burnell Multilateral Development Assistance: Good, Bad or Just Plain Ugly?; M.McGillivray, S.Feeny &  H.White Immediate Prospects for Additional Finance: What Might be Done Now or Soon and on What Conditions?; A.Clunies-Ross &  J.Langmore Financing Global and Regional Public Goods through ODA?; H.Reisen, M.Soto & T.Weithöner Multiactor Global Funds: New Tools to Address Urgent Global Problems; J.Heimans Transition from ODA to Private Capital Flows; R.Kohli The Millennium Challenge Account: Transforming US Foreign Assistance Policy?; S.Radelet Debt Relief: The Development and Poverty Impact; T.Addison Remittances and Financial Inclusion in Development; H.S.Toxopeus &  R.Lensink