Ten Myths of the International Finance Facility
AbstractThe British proposal to create an International Finance Facility in order to ‘frontload’ $50 billion in aid per year until 2015 has generated a lot of attention and will likely be a major topic at the G8 meeting this July. But the IFF has also been shrouded in confusion and misconceptions. This paper explains the IFF proposal and highlights some of the common misunderstandings surrounding it, including the mechanics of the scheme itself, the potential for a U.S. role, and the expectations of aid which underlie the IFF’s premise. The UK deserves plaudits for elevating global poverty on the international agenda and for seeking ways to better harness the power of private capital markets for development. But the IFF, as currently conceived, is an idea that merits more scrutiny and a healthy dose of skepticism.
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Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 60.
Length: 10 pages
Date of creation: May 2005
Date of revision:
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Web page: http://www.cgdev.org
development aid; International Finance Facility (IFF); poverty; private capital market;
Find related papers by JEL classification:
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- F35 - International Economics - - International Finance - - - Foreign Aid
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-08-26 (All new papers)
- NEP-DEV-2006-08-26 (Development)
- NEP-FMK-2006-08-26 (Financial Markets)
- NEP-SEA-2006-08-26 (South East Asia)
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- Kenny, Charles, 2006.
"What is effective aid? How would donors allocate It?,"
Policy Research Working Paper Series
4005, The World Bank.
- Charles Kenny, 2008. "What is effective aid? How would donors allocate it?," European Journal of Development Research, Taylor and Francis Journals, Taylor and Francis Journals, vol. 20(2), pages 330-346.
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