Innovative Sources of Development Finance - Global Cooperation in the 21st Century

The steady decline of funds available through ODA implies the necessity of design of innovative funding mechanisms for development. This paper considers several such proposals including an international carbon tax, a Tobin tax, aviation taxes, bit taxes, taxes on international trade, taxes on the arms trade and the like. It evaluates their likely impacts as well as likely revenue potential. It argues for the establishment of a World Development Organization which is to be entrusted with providing a rationale for such taxes, collecting and earmarking the revenues and designing formulae for disbursal of such aid to developing countries