Mobilization of international emergency funding

Ms. Dilek Aykut, Economist, International Finance Team, World Bank

The euro has become the second key currency in international finance.

Noteworthy are such initiatives as the International Financing Facility.

Apart from that, the international financial architecture should also be reformed.

Action is needed on innovative financing, including the International Finance Facility (IFF) and an airline ticket levy.

Finance theorists have written reams on the consequences of the failure of the efficient markets hypothesis.

In addition, there is an urgent need for international funding for the electoral process.

Financing should come from the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, as well as from bilateral support provided by the US, the European Union, China, and the Gulf states.

Malaysia welcomes new and innovative ideas on securing international funding for development related purposes.

The international community should provide more assistance in terms of funding, technology and training.

We would therefore like to appeal to the international community to urgently address the shortfalls.

However, the bulk of this increased funding must come from the international community.

Imagine if the International Monetary Fund, the World Bank, and regional development banks suspended financing as soon as a government pulled down an information curtain.

The International Monetary Fund should be an essential port of call for emerging market and developing countries facing financing needs.

Agreements with, and access to, the International Monetary Fund and Europe s new bailout fund provide (soft) constraints.

How soon can agreement on the proposed International Finance Facility be reached by the necessary minimum number of donors?

6. Welcomes the contribution to the mobilization of additional and predictable resources for development by voluntary innovative financing initiatives taken by groups of Member States, and in this regard notes the International Drug Purchase Facility, UNITAID, the International Finance Facility for Immunization and the advance market commitment initiatives

Chancellor Brown's proposal an initiative called the International Finance Facility (IFF) does precisely this.

The 2008 crisis highlighted the need for international cooperation to regulate finance and mitigate the effects of a crisis.

2. Welcomes the increased funding for malaria interventions and for research and development of preventative and control tools from the international community, through targeted funding from multilateral and bilateral sources and from the private sector

Reforms in the forest sector, good governance and the creation of a stable and sound institutional and policy environment will help attract more international finance for development and contribute to the self financing of the sector.

Indeed, some thought should be given to an exit strategy from cheap and unconditional IMF financing.

A well resourced financial sector intensively lobbies the most influential governments in global finance.

We would stress in particular the need for the international community to fulfil its commitments to Africa by mobilizing financial resources to implement African projects.

Yam remains a hero to many in Hong Kong, including journalists unschooled in international finance.

This is one of the main aims of global taxation mechanisms, such as the International Finance Facility initiative and the Airplane Tax.

Instead, most IMF shareholders seem to favor making the organization s financing easier.

With much fanfare, the IMF recently embraced a new institutional view that seemingly endorses re regulating global finance.

We look forward to the International Finance Facility pilot project, which will, we hope, yield experience that can be used in devising more extensive financing arrangements.

One of the strongest weapons that the international community had in the fight against transnational organized crime and terrorism was the ability to disrupt funding.

And, as the World Bank s International Finance Corporation (IFC) noted in 2010 The demand for education services (in Africa) is rising at a faster rate than governments can supply.

Both started as NGOs (following the Grameen model) and received millions in grant money from development institutions to start lending operations. They also got access to low cost lending from government banks and multilateral institutions such as the International Finance Corporation (the World Bank s commercial lending arm) and the US Agency for International Development.

The above mentioned report of the Ad Hoc Expert Group and the Guadalajara report also point out that it is essential to consider financing, including the sources of funding and funding mechanisms, as an indispensable element of developing the international arrangement.

But in the history of international finance over the past sixty years, bankruptcy and default are almost unheard of.

Securing a loan from the International Monetary Fund has become the principal objective of economic management, coupled with other anxious attempts to raise financing.

Meaningful success in Afghanistan will become elusive at any level of funding or international troop presence.

Much has already been achieved since the crisis, through more resources for the IMF and new financing instruments.

This put financial capital in a privileged position governments had to pay more attention to the requirements of international capital than to the aspirations of their own people.

(jj) Symposium on International Financing Instruments sponsored by APEC (Singapore, 14 16 December 2004)

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