FINANCING FOR DEVELOPMENTAn overview of importance, agents, and initiatives

PaperPrepared by Tyrone Schiff Organised by Glopolis, Prague Global Policy Institute in May 2008PragueMAY 2008

Contents........................................................................................................1Part I – The importance of financing development

I.a – For the World’s Community..................................................................2I.b – Investment reveals positive potential....................................................3I.c – Building from the inside........................................................................3I.d – Trade Policy...........................................................................................4

Part II – Actors of Financing Development

II.a – The World Bank....................................................................................5II.b – The International Monetary Fund........................................................7

Part III – Institutions in Need of Development Finance

III.a – Education.............................................................................................10III.b – Healthcare...........................................................................................11III.c – Technology..........................................................................................12III.d – Energy.................................................................................................13

Part IV – Conclusion

...................................................................................14

References

.....................................................................................................162

The process of financing development is not a simple or easy task for the globalcommunity to undertake. There is a lot that needs to be done and there are several waysin which various entities around the world can work to resolve this problem. In order totruly get a sense of what it takes to finance development, the object of this exploratory paper into this topic will delve into the following topics: why does financingdevelopment matter, who are the actors and agents of financing development, and whatare the various types of institutions that require the help of financing for development.

Why Financing Development Matters

In a publication prepared by the UN Secretary-General prepared for the PreparatoryCommittee of the International Conference on Financing for Development in 2002,several different initiatives are outlined that discuss the importance of financingdevelopment. The most significant of these issues will be discussed here.

a.For the World’s Community

First and foremost, the reason that financing for development occurs is to help andsustain the lives of people living in the various countries around the world in whichmalnutrition, disease, and lack of infrastructure is rampant. People are the number one priority when it comes to the task of financing for development. In other words, the process of developing countries through financing it is a means of leveling the playingfield around the world and redistributing the unequal share that some richer countrieshave around the world. The result of this sharing is not a negative impact, but rather a3