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Financing for Development: The Gap between Words and Deeds since Monterrey

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  • Peter Nunnenkamp
  • Rainer Thiele

Abstract

The Monterrey Consensus agreed at the UN summit on Financing for Development in 2002 promised a breakthrough in terms of donor generosity, aid effectiveness and new means of financing. However, the development orientation of world leaders proved to be short-lived. This is even though our evaluation reveals progress since Monterrey in some areas, notably debt relief and private (FDI) flows. Calls for substantially scaling up regular aid had little effect, and financial innovations contributed only marginally to overall development financing so far. There is not much progress either from the perspective of critics focusing on the quality of aid. In particular, we find that the targeting of aid according to need and merit leaves much to be desired. The gap between words and deeds continues to be wide with regard to aid proliferation and donor coordination, too

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Bibliographic Info

Article provided by Overseas Development Institute in its journal Development Policy Review.

Volume (Year): 31 (2013)
Issue (Month): 1 (01)
Pages: 75-98

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Handle: RePEc:bla:devpol:v:31:y:2013:i:1:p:75-98

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  1. Öhler, Hannes & Nunnenkamp, Peter & Dreher, Axel, 2012. "Does conditionality work? A test for an innovative US aid scheme," European Economic Review, Elsevier, Elsevier, vol. 56(1), pages 138-153.
  2. Carl-Johan Dalgaard & Henrik Hansen & Finn Tarp, 2001. "On the Empirics of Foreign Aid and Growth," EPRU Working Paper Series, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics 03-13, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics, revised Sep 2003.
  3. David Mayer-Foulkes & Peter Nunnenkamp, 2005. "Do Multinational Enterprises Contribute to Convergence or Divergence? A Disaggregated Analysis of US FDI," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c010_045, DEGIT, Dynamics, Economic Growth, and International Trade.
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Cited by:
  1. Peter Nunnenkamp & Hannes Öhler & Rainer Thiele, 2011. "Donor Coordination and Specialization: Did the Paris Declaration Make a Difference?," Kiel Working Papers 1748, Kiel Institute for the World Economy.
  2. Julian Donaubauer & Birgit Meyer & Peter Nunnenkamp, 2014. "A New Global Index of Infrastructure: Construction, Rankings and Applications," Kiel Working Papers 1929, Kiel Institute for the World Economy.
  3. Philipp Hühne & Birgit Meyer & Peter Nunnenkamp, 2013. "Who Benefits from Aid for Trade? Comparing the Effects on Recipient versus Donor Exports," Kiel Working Papers 1852, Kiel Institute for the World Economy.

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