Innovative Sources of Finance after the Paris Conference-

This paper provides an analysis of the different proposals for new sources of international development finance. In doing so, the following questions are addressed: Why are alternatives or additional sources being sought to Official Development Assistance? What are the criteria for making effective use of additional financial flows to developing countries and how can they affect the absorptive capacity in recipient nations? How can this new-found development momentum be sustained and what will be the overall role that new sources of development finance play for the attainment of the Millennium Development Goals and economic growth? Finally, the basis of political support for the different proposed mechanisms are examined and it is discussed to what extent they could be implemented in the short and longer term.