The seven potential options:
The policy brief from the UN University's World Institute for Development Economics Research (UNU-WIDER) in Helsinki, written by Anthony B. Atkinson, Warden of Nuffield College, University of Oxford, summarizes conclusions from a series of expert analyses commissioned for the project.
"Developing countries are mobilizing resources themselves to meet the MDG targets by 2015, but they will fall short without additional external flows," the paper says. "Increased private and public money is needed in order for the world's poorest countries to invest in the basic services and infrastructure necessary for human development, and to improve livelihoods and employment for poor people.
The paper says the $50 billion needed "could be achieved by a doubling of official development assistance (ODA). Welcome steps have been made in that direction, but this takes time, and time is of the essence. For this reason alone, it is necessary to consider new sources."
"Any realistic programme is likely to consist of a package of measures," the paper says, as only a carbon tax (levied only on high-income countries at a rate equivalent to 4.8 cents per US gallon of gasoline – roughly €0.01 per litre) would by itself raise the required funds.
The paper stresses the potential independent impact of individual nations in achieving the MDGs.
"Acting alone, the government of a rich country can take steps to increase the flows of finance for development. A single country could, for example, allow income tax deductions for taxpayers sending remittances to fund community projects in the home country. A single country could launch a premium bond dedicated to development funding. A single country could decide to allocate to development purposes part of the proceeds from its national lottery. A single country could match out of public funds the amounts donated by its citizens to development charities."
A brief summary of conclusions is included in the full policy brief, online at: http://www.wider.unu.edu/publications/policy-brief/PB10.pdf. The study, which the policy brief summarizes, will be published by Oxford University Press in October as New Sources of Development Finance, edited by Anthony B. Atkinson.
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