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

24 Pages Posted: 16 Dec 2012

See all articles by Peter Nunnenkamp

Peter Nunnenkamp

University of Kiel

Rainer Thiele

Kiel Institute for the World Economy

Date Written: January 2013

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 less effect than envisaged, and financial innovations have contributed only marginally to overall development financing so far. Nor is there much progress from the perspective of critics focusing on the quality of aid. In particular, 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 co‐ordination as well.

Keywords: Official development assistance, debt relief, aid for trade, donor co‐ordination, financial innovations, foreign direct investment, corruption

Suggested Citation

Nunnenkamp, Peter and Thiele, Rainer, Financing for Development: The Gap between Words and Deeds Since Monterrey (January 2013). Development Policy Review, Vol. 31, Issue 1, pp. 75-98, 2013. Available at SSRN: https://ssrn.com/abstract=2189952 or http://dx.doi.org/10.1111/j.1467-7679.2013.00602.x

Peter Nunnenkamp (Contact Author)

University of Kiel ( email )

D-24100 Kiel
Germany

Rainer Thiele

Kiel Institute for the World Economy ( email )

P.O. Box 4309
Kiel, D-24100
Germany
+49 431 8814 215 (Phone)
+49 431 8814 500 (Fax)

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