Diversification and fragmentation of public financing for development

April 04, 2023, Paris et en ligne

The FERDI's Chair in International Architecture of Development Finance is organizing six events in preparation for the June Paris Summit on Development Financing of Vulnerable Countries.

This session consisted of two parts : 

  • Rationalise the fragmented structure of development finance:
    United Nations, Multilateral Development Banks, Regional Institutions (notably the EU), Trust Funds and Vertical Funds.
  • Specific taxes to finance development?
    Why not a tax on kerosene?

Part 1. Rationalising the fragmented structure of development finance: United Nations, multilateral development banks, regional institutions (including the EU), trust funds and vertical funds

The problem of fragmentation at the multilateral level is not only due to the juxtaposition of international financial institutions and institutions that depend on the United Nations or regional bodies such as the EU, it is also and even more due to the multiplication of public and private vertical funds whose intervention modalities and allocation models differ between countries. How can we increase the coherence of these multiple public and private multilateral interventions (philanthropic institutions, ESG funds)?


Presentation of the paper "Diversification and Fragmentation of Official Development Finance - Making the fragmented structure of development finance less opaque and more streamlined."

Alain Le Roy, French Ambassador and former UN Under-Secretary-General for Peacekeeping

Jean-Michel Severino, Chairman of Investisseurs et Partenaires (I&P), former Director General of AFD, Senior Fellow of FERDI

Opening of the discussion: Stephane Cieniewski, Senior Advisor for Environment and Climate, Ministry of Economy, Finance and Industrial and Digital Sovereignty.


Tertius Zongo, Former Prime Minister of Burkina Faso, Director of the Sahel Chair

Arlette Soudan-Nonault, Minister of the Environment, Sustainable Development and the Congo Basin, Republic of Congo (by video

Issa Sanogo, United Nations Resident Coordinator in Madagascar (by video)

Serge Degallaix, Former Ambassador, Director at Fondation Tunisie pour le Développement 

Olivier Cattaneo, Head of Unit, Policy Analysis and Strategy, Development Cooperation Directorate, OECD

Bernhard Reinsberg, Reader at the University of Glasgow, Research Associate at the University of Cambridge (by video)

Part 2. Specific taxes to finance development? Why not a tax on kerosene?

There are two categories of financing that have long been referred to as innovative: those with "innovative" modalities (blending, insurance, guarantees, etc.), which are the ones that are innovative in their modalities, and those that aim to mobilize new sources, generally with a specific allocation. These include specific earmarked taxes. What are their advantages and disadvantages? How are they compatible with the general implementation of a carbon tax? The possibility of a tax on kerosene could be examined in this context.


Presentation of the paper "Taxation of civil aviation fuels as a source of financing for vulnerable countries

Vianney Dequiedt, Professor of Economics at the University of Clermont Auvergne, researcher at the Cerdi, Scientific Director of the Ferdi, and Scientific and Technical Manager of Labex IDGM+.


Aurélien Lechevallier, Director General for Globalisation, Ministry of Europe and Foreign Affairs, France (tbc)

Alice Pauthier, Project Manager - Financing for Development, I4CE

Grégoire Rota Graziosi, Professor CERDI-UCA. 


Since its creation, FERDI has made international development finance its priority programme. At the same time, it has carried out a great deal of work on country vulnerability, its different forms, their measurement and how they were or could be taken into account in international development finance. Ferdi is internationally recognised for its expertise on issues of country vulnerability and its links to financing. 

In addition, since the beginning of the year, FERDI has created a Chair on the "International Architecture Development Finance " (IADF) under the direction of Philippe le Houérou, Chairman of the Board of Directors of AFD and former CEO of IFC, and with the participation of a select group of French personalities with considerable experience in the field and an equal desire for reform, all intervening in their personal capacity: notably Rabah Arezki, former Chief Economist and Vice President of the African Development Bank; Bruno Cabrillac, Deputy Director General of Studies and International Relations, Banque de France; Sylviane Guillaumont Jeanneney, Professor Emeritus, former member of the Board of Directors of the AFD; Alain de Janvry and Elisabeth Sadoulet Professors at the University of California at Berkeley, Senior Fellows at Ferdi; Olivier Lafourcade, former Director at the World Bank; Alain Le Roy, Ambassadeur de France and former Under Secretary General of the United Nations; Jean-Michel Severino, Chairman of Investisseurs et Partenaires (I&P) and former Director General of the AFD. 

The purpose of the group was to reflect independently on what the global development finance system should become in the light of the current international situation and the lessons learned from the past 60 years. The announcement made by the President of the French Republic of a Summit to be held in Paris on the financing of vulnerable countries with a view to adopting a Financial Pact with these countries has led the IADF Chaire to adapt, accelerate and amplify its programme so as to make contributions on themes that are crucial to the orientation of the Summit.

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