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Innovative Sources of Development Finance: Global Cooperation in the Twenty-first Century

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  • Raghbendra Jha

Abstract

This paper argues that in view of the resource crunch confronting many developing countries and the fall in overseas development aid flows to them, new sources of development finance need to be found. We consider international taxes, fees and levies that could considerably augment aid flows to developing countries and some of which may have coincident beneficial effects. Estimates of the revenue yield from such taxes and levies are also presented. The paper proposes the establishment of a 'world development organisation' to coordinate such effort. A formula for voting within the organisation and another for disbursal of such aid are suggested. Copyright Blackwell Publishing Ltd 2004.

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Article provided by Wiley Blackwell in its journal The World Economy.

Volume (Year): 27 (2004)
Issue (Month): 2 (02)
Pages: 193-214

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Handle: RePEc:bla:worlde:v:27:y:2004:i:2:p:193-214

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  1. Hansen, Henrik & Tarp, Finn, 2001. "Aid and growth regressions," Journal of Development Economics, Elsevier, Elsevier, vol. 64(2), pages 547-570, April.
  2. David Dollar & Craig Burnside, 2000. "Aid, Policies, and Growth," American Economic Review, American Economic Association, American Economic Association, vol. 90(4), pages 847-868, September.
  3. Faguet, Jean-Paul, 2004. "Does decentralization increase government responsiveness to local needs?: Evidence from Bolivia," Journal of Public Economics, Elsevier, Elsevier, vol. 88(3-4), pages 867-893, March.
  4. Howell H. Zee, 2000. "Retarding Short-Term Capital Inflows Through withholding Tax," IMF Working Papers 00/40, International Monetary Fund.
  5. Eichengreen, Barry & Tobin, James & Wyplosz, Charles, 1995. "Two Cases for Sand in the Wheels of International Finance," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 105(428), pages 162-72, January.
  6. Dornbusch, Rudiger, 1976. "Expectations and Exchange Rate Dynamics," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 84(6), pages 1161-76, December.
  7. Brett, Craig & Keen, Michael, 2000. "Political uncertainty and the earmarking of environmental taxes," Journal of Public Economics, Elsevier, Elsevier, vol. 75(3), pages 315-340, March.
  8. James Tobin, 1978. "A Proposal for International Monetary Reform," Eastern Economic Journal, Eastern Economic Association, vol. 4(3-4), pages 153-159, Jul/Oct.
  9. Henrik Hansen & Finn Tarp, 2000. "Aid effectiveness disputed," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 375-398.
  10. Don Fullerton, 1995. "Why Have Separate Environmental Taxes?," NBER Working Papers 5380, National Bureau of Economic Research, Inc.
  11. Jha, Raghbendra, 2001. "Macroeconomics of Fiscal Policy in Developing Countries," Departmental Working Papers, The Australian National University, Arndt-Corden Department of Economics 2001-05, The Australian National University, Arndt-Corden Department of Economics.
  12. Raghbendra Jha, 2002. "The downward rigidity of Indian interest rates," ASARC Working Papers, The Australian National University, Australia South Asia Research Centre 2002-01, The Australian National University, Australia South Asia Research Centre.
  13. Bird, Richard M. & Smart, Michael, 2002. "Intergovernmental Fiscal Transfers: International Lessons for Developing Countries," World Development, Elsevier, Elsevier, vol. 30(6), pages 899-912, June.
  14. Fiszbein, Ariel, 1997. "The Emergence of local capacity: Lessons from Colombia," World Development, Elsevier, Elsevier, vol. 25(7), pages 1029-1043, July.
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