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New Sources of Development Finance$
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A. B. Atkinson

Print publication date: 2004

Print ISBN-13: 9780199278558

Published to Oxford Scholarship Online: January 2005

DOI: 10.1093/0199278555.001.0001

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Over-Arching Issues

Over-Arching Issues

(p.17) 2 Over-Arching Issues
New Sources of Development Finance

Anthony B. Atkinson (Contributor Webpage)

Oxford University Press

This chapter, together with chs. 10 to 11, approaches the question of development funding in a theoretical way, rather than by examining individual proposals for sources. Chapter 2 itself deals with over‐arching issues and aims to set out a number of the common questions that arise in considering sources of new revenue for development finance. These concern the precise specification of the proposal, its relation with Official Development Assistance (ODA), and the administrative architecture. The key questions addressed in the different sections are: the role of the new sources; their fiscal architecture (flexibility in country involvement, institutional arrangements, fiscal federalism); the marginal cost of development funds (the leaky bucket argument) and the double dividend argument; the transfer problem (the possible effects of transfers on the economies of the donor and recipient countries); and the equivalent effects of different economic measures/policy instruments.

Keywords:   administrative architecture, development finance, development funding, double dividends, equivalence of economic measures, equivalence of policy instruments, fiscal architecture, leaky buckets, marginal cost, Official Development Assistance, role of new sources of development funding, sources of funding, specification, transfer problem

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