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Ten Myths of the International Finance Facility

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  • Todd Moss

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    Abstract

    The 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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    File URL: http://www.cgdev.org/content/publications/detail/2728
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    Bibliographic Info

    Paper provided by Center for Global Development in its series Working Papers with number 60.

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    Length: 10 pages
    Date of creation: May 2005
    Date of revision:
    Handle: RePEc:cgd:wpaper:60

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    Web page: http://www.cgdev.org

    Related research

    Keywords: development aid; International Finance Facility (IFF); poverty; private capital market;

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    Cited by:
    1. Charles Kenny, 2008. "What is effective aid? How would donors allocate it?," European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 330-346.

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