Financing Sustainable Development: Addressing Vulnerabilities

467 Pages·2015·6.09 MB·French

Edited by Matthieu BOUSSICHAS
Patrick GUILLAUMONT
Financing
Sustainable Development
Addressing Vulnerabilities
ECONOMICA

Financing SuStainable Development:
aDDreSSing vulnerabilitieS
Financing Sustainable Development: Addressing Vulnerabilities
Copyright © Fondation pour les études et recherches sur le développement
international (Ferdi), 2015.

Fondation pour les études et recherches sur le développement international
(Ferdi)
63, boulevard François-Mitterrand
63000 Clermont-Ferrand
France
ISBN: 978-2-9550779-0-0
Published in association with Éditions Economica, Paris.
Financing Sustainable
Development:
Addressing Vulnerabilities
edited by
matthieu bouSSichaS
Fondation pour les études et recherches sur le développement international
(Ferdi)
and
patrick guillaumont
Fondation pour les études et recherches sur le développement international
(Ferdi)
Fondation pour les études et recherches
sur le développement international
The Fondation pour les études et recherches sur le développement international
(Ferdi) was created in 2003 at the initiative of CERDI (Centre d’études et
de recherches sur le développement international, University of Auvergne
and CNRS). Its mission is to promote a fuller understanding of international
economic development and the factors that influence it.
With its network of over 150 experts, Ferdi supports research activities that use
the most directly relevant instruments and methods to study development and
seeks to strengthen the potential of the French-speaking world in this area.
Ferdi endeavours to promote the contribution of French and European work to the
international debate on major development issues, in particular on how Southern
and Northern economic policies can best assist development by broadening the
capacity for individual choice and by developing equality of opportunity among
nations. Ferdi wishes to contribute to improving these policies and providing
information for companies whose business depends on world markets and their
outlook.
Patrick Guillaumont President
Christophe Angely Head of Strategy
Jaime de Melo Scientific adviser
Contents
Acknowledgements xii
About the Authors xiii
List of Abbreviations xix
Introduction: Using Finance to Address Vulnerability and Make
Development Sustainable: Issues and Contributions 1
Patrick Guillaumont and Matthieu Boussichas
PART ONE:
OVERVIEW: FINANCE MAPPING FOR DEVELOPMENT
1 Financing Development in Risky Contexts 35
Giorgia Giovannetti and Mauro Lanati
2 Modernising and Revitalising the Measurement of Development
Finance 59
Serge Tomasi
3 China’s Contribution to Development Cooperation: Ideas,
Opportunities and Financing 73
Justin Yifu Lin and Yan Wang
4 Role of South-South Cooperation in the Context of the
Post-2015 Agenda 91
Debapriya Bhattacharya
5 Triangular Cooperation as an Effective Tool for Strengthening
International Knowledge Sharing 103
Hiroshi Kato and Masato Tokuda
6 The Future of Multilateral Development Banks in the Post-2015
Agenda Will Involve Fundamental Reforms 119
Benoît Chervalier
7 What Does the Future Hold for the Multilateral, Regional and
National System of Development Banks? A Post-2015 Outlook 131
Jean Michel Debrat and Mamadou Lamine Loum
8 Why We Urgently Need Clarity on the Post-2015 Development
Agenda and Financing for Development 149
Barry Herman
PART TWO:
FINANCING ECONOMIC SUSTAINABILITY
9 Debt Sustainability in Low-income Countries: The Grants
versus Loans Debate in a World Without Crystal Balls 171
Ugo Panizza
10 Financing the Rise in Investment in Low-Income Countries:
Boosting Domestic Savings is the Key 183
Bruno Cabrillac
11 Tax Effort of Developing Countries: An Alternative Measure 205
Jean-François Brun, Gérard Chambas and Mario Mansour
12 Remittance and Migration Prospects for the Twenty-First
Century 217
Frédéric Docquier and Joël Machado
13 A New Instrument Supporting Regional Integration in Africa 231
Patrick Guillaumont and Sylviane Guillaumont Jeanneney
14 Potential and Perspectives for Using Guarantees for
Development in the Post-2015 Framework 241
Julia Benn, Cécile Sangaré and Mariana Mirabile
PART THREE:
FINANCING SOCIAL AND POLITICAL SUSTAINABILITY
15 Diversifying the Economies of Fragile African States:
How Donors Can Help 261
Paul Collier
16 Supporting Risk Management by the Poor: What Role for
Overseas Development Assistance? 277
Alain de Janvry and Elisabeth Sadoulet
17 Financial Deepening and Poverty Reduction 287
Sylviane Guillaumont Jeanneney and Kangni Kpodar
18 Aid for Trade as Finance for the Poor 303
Jaime de Melo and Laurent Wagner
19 Pooling Risk, Pooling Hope: Towards a Global Compact for
Sustainable Health Financing 319
Michel Sidibé
20 Development Partners, One More Push for Greater Impact! 337
Jean-Michel Severino and Pierrick Baraton
PART FOUR:
FINANCING ENVIRONMENTAL SUSTAINABILITY
21 Country Allocations versus Issue Allocations: The Case of
Climate Finance 353
Inge Kaul, Donald Blondin and Neva Nahtigal
22 COP21: A Proposal for International Funding of Energy
Transition in Emerging Countries 371
Gaël Giraud, Alain Grandjean and Benoît Leguet
23 All You Need Is Cash (for REDD+)? 385
Arild Angelsen
24 Principles and Dilemmas in Mining Taxation 399
Bertrand Laporte and Grégoire Rota-Graziosi
25 Innovative Financing for Development 415
Philippe Douste-Blazy and Robert Filipp
26 Financial Innovation for Global Solidarity 433
Pierre Jacquet and Varad Pande
List of Figures
Figure 1.1. Aggregate official and private flows: ODA vsersus other
sources 45
Figure 1.2. External resources 46
Figure 1.3. ODA flows by group 48
Figure 1.4. Growth in South-South foreign direct investment 49
Figure 2.1. Share of the global economy, 1990-2030 63
Figure 2.2. Total aid to the energy sector: Grants, concessional and non-
concessional loans 64
Figure 2.3. Climate change: 50% increase in greenhouse gas emissions by
2050 67
Figure 2.4. Aid to combat climate change in 2011 68
Figure 3.1. Chinese-financed projects helped to address bottlenecks in sub-
Saharan Africa in 62.5% of the cases, 2001-2010 78
Figure 3.2. Proposal for an expansion of the definition of development
financing 82
Figure 6.1. Emerging powers in evidence but not yet dominant 128
Figure 10.1. Average investment rate in LICs and LMICs 184
Figure 10.2. Average GDP per capita and investment rates in LICs,
1995-2012 185
Figure 10.3. Average savings rates in LICs and LMICs 186
Figure 10.4. Savings less investment in LICs and LMICs 186
Figure 10.5. Average current account balances and total reserves in LICs
and LMICs 187
Figure 10.6a. Savings and investment rates in LICs, 2012 193
Figure 10.6b. Savings and investment rates in LMICs, 2012 193
Figure 10.7. Tax revenues 194
Figure 10.8. M2/GDP in LICs and LMICs, 1980-2012 198
Figure 10.9. Average savings rate and M2 199
Figure 12.1. Remittances and official development assistance, 1970-2011 217
Figure 12.2. Main recipient countries, 2010 218
Figure 12.3. Demographic and economic projections for the world economy,
2000-2100 222
Figure 12.4. Remittances as percentage of GDP in low-income countries
(2000-2100) 229
Figure 14.1. Amount mobilised by beneficiary income group 243
Figure 14.2. Regions benefiting from resources mobilised by guarantees 244
Figure 14.3. Top five sectors benefiting from guarantees 244
Figure 14.4. Amount mobilised by origin of funds 246
Figure 14.5. Guarantors’ gross and net exposure 247
Figure 14.6. Instruments covered by guarantees 248