This paper outlines an expanded and more challenging role for multilateral development banks (MDBs) in the provision of longer term development finance. The traditional role has to be further refocused and expanded to cover mobilization of private sector resources, both external and internal.

This study seeks to discern whether the current distribution of income determines the evolution of future income distribution and economic growth through fiscal policy. Fiscal policy consists of transfer payments or an income tax. Fiscal policy is determined by the level of development,...