Innovative sources of development finance: Global cooperation in the twenty-first century

This paper argues that in view of the resource crunch confronting many developing countries and the fall in overseas development aid flows to them, new sources of development finance need to be found. We consider international taxes, fees and levies that could considerably augment aid flows to developing countries and some of which may have coincident beneficial effects. Estimates of the revenue yield from such taxes and levies are also presented. The paper proposes the establishment of a ‘world development organization’ to coordinate such effort. A formula for voting within the organization and another for disbursal of such aid are suggested.