Friday, May 29, 2009

Alternative mechanisms for financing development

Readers interested in my posts titled "Should Aid be Unconditional?" and "Should all foreign aid be banned?" may be interested to note that the Danish Institute for International Studies has just published a study titled: "Alternative development financing mechanisms: pre-crisis trends and post-crisis outlook".

In it, Sam Jones points out that it has now become unfashionable to support ‘traditional’ approaches to development finance (official bilateral and multilateral assistance to discrete projects through a combination of loans and credits). Reform of traditional aid and alternative approaches to financing are now being increasingly advocated.

The study includes 1) an examination of the characteristics of the alternative financing mechanisms that have emerged over recent years; 2) an analysis of their (combined) contribution to addressing development financing challenges in the poorest countries; and 3) considerations over the future prospects of alternative financing mechanisms.

The study focuses particularly on sub-Saharan Africa, and is a useful comparative studay of traditional versus some "alternative" funding mechanisms (the study does NOT include the "alternative" mechanism put forward by me).

My own views, indicated for example in the two posts indicated above, are now enriched by the study though fundamentally unchanged. Sphere: Related Content

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