Financing development

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Background: Financing development

In 2000 the in­ter­na­tional com­mu­ni­ty agreed binding targets for sus­tain­able de­vel­op­ment in the form of the Millennium De­vel­op­ment Goals (MDG). This triggered debate on how the measures needed to achieve the goals would be funded. In 2002 the de­vel­op­ing and industrialised coun­tries adopted the Monterrey Consensus, in which they agreed to increase public financing of de­vel­op­ment co­op­er­a­tion; this agreement was reaffirmed in the Doha Declaration of December 2008. Since then, how­ever, the chal­lenges faced by de­vel­op­ment financing have mounted as a result of the global financial and economic crisis. more

Debt relief: Debt hinders development

High levels of debt can become an obstacle to development if they limit the scope for poverty reduction. If the debt burden is so large that even with above-average economic growth a country is barely able to meet its interest and redemption payments, then there is no money left for urgently needed investments in basic services and infrastructure such as schools, hospitals, sanitation and power supplies. This affects the poorest of the poor most. more

Innovative development financing instruments: Finding new pathways

Since the UN conferences in Monterrey (2002) and Doha (2008) there has been much discussion of innovative de­vel­op­ment financing in­stru­ments. Such in­no­va­tive financing mechanisms fall into three categories: generating additional public funds, deploying public funds as a lever or catalyst for private capital, and using funding more efficiently. more

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