IFI governance


UK government pushing new finance facility

1 April 2003

The British government has issued more detailed plans for a mechanism to increase the amount of money spent on development assistance. The International Finance Facility would allow money to be raised from the bond markets against government pledges, effectively bringing forward spending towards the Millenium Development Goals. The money would be spent through existing channels such as the World Bank. And as the British government has just initiated a war which may cost four times the annual aid flow to developing countries, enthusiasm may be limited.