Financing Economic Development. Theoretical Debates and Empirical Trends

This Working Paper is a contribution to Task 2 of Work Pack 6 Finance, Development and Global Governance. Task 2 seeks to assess the impact of the changes in the global financial and monetary system on developing countries. Within Task 2, the research is concerned with the effect of the evolution of the international financial and monetary system on developing countries since the financial crisis, and how this impact is affecting the modalities of cooperation among developing countries, multilateral trade and development agencies and the governments of OECD countries and the EU. Deliverable D6.06 has been structured as a series of working papers (Working Paper 139; Working Paper 140 and Working Paper 157). These report on the implications of various changes in the relations between the developed world, including the EU, and the developing world for financing development of developing countries, against the backdrop of transformations entailed through financialisation and the global financial and economic crisis. In essence, two broad themes are explored. On the one hand, there is a focus on changes in the nature of development cooperation over the last decade, including qualitative changes bearing on the increased prevalence of Official Development Assistance (ODA) to promote private flows. On the other, the implications of the increased importance of domestic mobilisation of resources for financing development are considered. This Working Paper places these specific themes in the broader context of conceptual and empirical issues bearing on financing development.