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2 | 2011
Energy and Development
Dossier | Energie et développement - Revue | Évolutions des politiques de développement

Aspects of Development Financing After the Financial and Economic Crisis

Bruno Gurtner
Translation(s):
Comment financer le développement après la crise économique et financière

Abstract

Published by Palgrave Macmillan

The financial and economic crisis saw developing and emerging countries experience more severe setbacks in their growth rates than industrialised countries and they did not all have sufficient funds to finance robust stimulus measures. The major emerging economies have nevertheless recovered quickly and are currently the most important growth engines in the world economy.

Private capital flows collapsed, leaving the global South with an overall deficit in financing. Greater official financing flows have not yet been able to compensate for the shortfalls and the slow increase in private capital flows since the end of 2009 has not been able to do so either. Overall, according to the UN, more capital flows from the South to the North than vice versa. The South thus continues to finance the North.

Discussions regarding a reform of the global financial and economic order are ongoing but to date have had little impact on developing countries. The international financing institutions do have more funds at their disposal, but developing countries are still under-represented. The IMF and the World Bank have begun to question some of their previous dogmas. Opinions are divided on whether one can already speak of a new policy.

The debate on the role of taxation in the mobilisation of local resources for development financing has intensified. Insight favouring comprehensive reforms of the taxation systems in developing countries has sharpened, but technical aid provided by industrialised countries to realise these reforms is still insufficient. Taxation is acquiring growing recognition as an instrument of State-building, democratisation and governance. The campaign to deal with international tax evasion and illicit capital flows is gaining momentum and the exchange of information on tax issues has improved. However, it is difficult to establish newer and more trenchant instruments for improved transparency, given the predominant interests of shady centres of finance.

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Cite this article

Electronic reference

Bruno Gurtner, « Aspects of Development Financing After the Financial and Economic Crisis », International Development Policy | Revue internationale de politique de développement [Online], 2 | 2011, Online since 24 May 2011, connection on 23 November 2017. URL : http://poldev.revues.org/794 ; DOI : 10.4000/poldev.794

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About the author

Bruno Gurtner

Economist and journalist; President of the Global Board of Directors, Tax Justice Network (TJN). Until his retirement in May 2008 he was responsible for the international financial questions programme at Alliance Sud. For 15 years he was a member of the Swiss government’s Advisory Committee on International Development Cooperation.

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Copyright

Creative Commons License
International Development Policy is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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