Innovating Development Finance : From Financing Sources to Financial Solutions
As early as 2000, development partners embarked on a decade-long search for "innovative" or alternative sources of Official Development Assistance to help finance achievement of the Millennium Development Goals. For their part, developing...
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091103112908 http://hdl.handle.net/10986/4300 |
| Summary: | As early as 2000, development partners
embarked on a decade-long search for "innovative"
or alternative sources of Official Development Assistance to
help finance achievement of the Millennium Development
Goals. For their part, developing countries have sought not
only more financial flows but better financial solutions,
for example, through partnerships that mobilize private
finance for public service delivery, risk mitigation efforts
that promote private entry in the productive sectors, and
support for carbon trading. This paper offers a framework to
organize and understand this heterogeneous mix of
innovations in fund-raising and financial solutions for
development. It also provides, for the first time, a
stocktaking of actual innovations that make up the
international landscape and highlights the World Bank
Group s role to date. The stocktaking shows that innovative
finance mechanisms have played a more significant role in
supporting financial solutions on the ground than in
identifying and exploiting "alternative sources of
ODA." Innovative fund-raising therefore should be
viewed as a complement to - rather than a substitute for -
traditional efforts to mobilize official flows, in
particular concessional flows. Going forward, innovations
need to be tested and evaluated to determine value-added. |
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