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1 The Inheritance: Evolution of the International Development System and of Development Financing 1

The evolution of the concept of development 1

Institutional changes in the international development system 4

The evolution of development financing mechanisms 9

Main defining characteristics of the international development system at the end of the twentieth century 17

2 Attempted Change: Recent Attemps to Transform the International Development Financing Architecture 22

Reforms in the United Nations 24

Reform of the International financial institutions 27

Reforms and recent developments in bilateral agencies 34

The EU aid reforms 40

Emerging initiatives in development financing 44

Major opportunities and threats for the future of international development financing 47

3 Building Scenarios for International Development Finance 50

Introduction 50

Institutional arrangements 57

Financing instruments 66

Capacity to mobilize financial resources 90

International political economy and political viability 100

4 The Shape of Things to Come: Scenarios and Their Policy Implications 117

Interactions between the scenario components 117

Scenarios for the international development financing system 118

A framework for strategic choices 150

5 Concluding Remarks: Strategy, Commitment and Prospects 179

Strategic options: taking stock and moving forward 181

The way forward: radical instrumentalism 188

Notes and References 190

Bibliography 199

Annex A: Development Financing 2000 Reports 211

Annex B: Country Classification Scheme: Approach, Methodology and Results 221

Index 233