In search of new development finance

Economic &

In Search of New
Development Finance

2012

The full publication can be accessed at: http://www.un.org/en/development/desa/policy/wess/index.shtml Related publications are also available from: http://www.un.org/en/development/desa/policy/publications/index.shtml Printed at the United Nations, New York
12-32527—June 2012—620

OVERVIEW

Social Affairs

WORLD ECONOMIC AND SOCIAL SURVEY

Department of Economic and Social Affairs

World Economic and Social Survey 2012

In Search of New
Development Finance

Overview

United Nations
New York, 2012

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Overview
Summary

A

perceived need for additional and more assured funding to address global development goals has led to a search for innovative sources of

financing to complement traditional official development assistance. Recently, a number of innovative initiatives have been launched, particularly in the field of health, but these have not been major fundraisers. Other options with large fundraising potential have been proposed, including taxes on financial transactions and greenhouse gas emissions, as well as the issuance of special drawing rights of the International Monetary Fund to be leveraged as development financing.
The feasibility of these proposals depends mainly on securing the

political agreement needed to implement them. Questions regarding the best ways to allocate the funds need to be addressed at the same time. Existing innovative development financing mechanisms earmark resources to specific purposes, such as for vaccination programmes designed to prevent the spread of contagious diseases. This has its advantages from a global public goods perspective, but the international programmes are not always well aligned with national priorities and well-functioning of national institutions in developing countries. The 2012 World Economic and Social Survey analyses these and other challenges. It confirms the potential of innovative