The latest ministerial meeting of the DCF in New York focussed on ways to improve the effectiveness of development cooperation in catalysing domestic resource mobilisation (budget revenue, microfinance), promote sustainable development, improve allocation among countries and sectors, increase quality and results, accelerate progress on accountability and transparency, and maximize the benefits of South-South cooperation. DFI provided key support to the preparation of the Secretary-General’s report on Development Cooperation. DFI’s Director also chaired a video panel discussion on mutual accountability. For other information on the outcome of the DCF click here.

After significant progress was made in the country’s economic management and having satisfied the main requirements, the IMF and the World Bank have approved 4.4 billion USD in debt relief for Côte d’Ivoire under the HIPC Initiative. Although a definite step in the right direction, this will not however solve the issue of debt owed to private creditors and that of new borrowing, as described in Jubilee Debt Campaign's detailed analysis.

DRI spoke on this topic at the World Bank Debt Management Facility Stakeholders Forum organised in Accra. The presentation focussed on lessons for best practice in building capacity, and especially emphasised the need for “downstream” (country-level) financing to be provided to other organisations to complement the “upstream” role of the World Bank in the DMF. To download a copy of the presentation click here. To see the wider programme and summary of proceedings of the forum click here.

DFI was commissioned by Save the Children UK to provide research into current and projected trends in social protection expenditure which contributed to the newly launched report A Chance to Grow. With the current global economic crisis hitting the poorest countries hardest, this report finds that promoting and strengthening social protection programmes can reduce child hunger and malnutrition, save lives and promote economic opportunities, and proposes a series of evidence-based recommendations to achieve this goal.

DFI joined the World Bank and IMF/AFRITAC Ouest in Nouakchott to conduct an MTDS mission. The mission trained the Debt Committee in the MTDS methodology, and participants drafted the MTDS report with the consultants’ assistance. Results were presented to the national public debt committee as well as to the Ministers for Finance and for Economic Affairs and Development during a closing session attended by World Bank and IMF resident representatives.

In the last 8 months, Development Finance International has expanded its advocacy work on debt, aid and innovative financing, increased its in-country capacity-building support on debt management (through an enhanced partnership with the World Bank, read more...

DFI is leading the production of a Handbook on Innovative Financing for Development for the Commonwealth Secretariat. The Handbook, due to be published in Q3 2012, uses a unique set of Principles to help developing countries to identify and assess a diverse range of new instruments in order to plug the huge development financing gaps necessary to meet their MDGs, address environmental challenges, and respond to exogenous shocks. It also raises awareness of innovative instruments presently under discussion. The Handbook is being targeted primarily at decision makers in developing countries.

A joint DFI and World Bank mission visited Tajikistan. The mission took place at the request of the Ministry of Finance, and focused on providing technical assistance in debt management strategy formulation. The mission shared the Bank-Fund framework for Medium-Term Debt Management Strategy (MTDS) development, and jointly with a government team, applied it to Tajikistan. In the process, the team provided training on basic cost-risk analysis, data preparation, and preparation of a debt management strategy document.

DFI presented the main findings of the client assessment of the African Development Bank to its Governors’ Dialogue on the long-term strategy, and to a consultative conference of CSOs, at the Annual Meetings of the African Development Bank in Arusha, Tanzania. The report will be presented formally to the AfDB Board, and published in time for the African Development Fund replenishment dialogue in Q3.

The European Parliament adopted by strong majority proposals for an EU-wide financial transaction tax. Following the recent French legislation for a unilateral FTT to be implemented in France from August 2012, Parliament approved the tax rates proposed by the Commission, 0.1 per cent for transactions of shares and bonds, and 0.01 per cent for derivatives. The adopted text also confirms that the additional revenue generated will also be used 'for specific policy purposes, such as development aid and fighting climate change', a step in the right direction for LICs' ministers who have been campaigning for an FTT and other innovative financing mechanisms.