International Finance Facility: The Global Marshall Plan?
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Code : ITF0027
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Region : :Global |
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Introduction: TheUnited Nations (UN)MillenniumDeclaration adopted in September 2000 says, “Wewill spare no efforts to free our fellowmen, women and children from the abject and dehumanizing conditions of extreme poverty, to whichmore than a billion of themare currentlysubjected.”4 The Declaration was a bold acceptance of the fact thatmore than one billion people, one sixth of the world’s population, live in extreme poverty, lack safe drinking water, proper nutrition, basic healthcare and welfare services needed to survive. This is in spite of the fact that numerous efforts such as theG-7’s5 Heavily Indebted Poor Country (HIPC) Initiative and UN’sMillennium Development Goals (MDG), had been extended to alleviate poverty. Even thoughMDGs had its own financemechanism, its implementationwas affected by shortage of funds.To finance theMGDs, Gordon Brown,UK Chancellor of the Exchequer, proposed setting up of an International Finance Facility, whichwould aim to increaseworldwide aid funding from$50 billion to $100 billion, by issuing bonds that are backed by aid pledgesmade by donor countries, in the international capitalmarkets.But, like any other proposal it has its own advantages and disadvantages and it is to been seenwhether the proposal would be successful in its commitment to poverty alleviation. |
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