Purposes and recipients of public financing for development. How to reach vulnerable countries?

March 13, 2023, Paris

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

The first event was on the theme of "Purposes and recipients of public development funding. How to reach vulnerable countries?"

This event was organised in Paris on Monday 13 March from 3pm to 6.30pm and opened by Mrs. Chrysoula Zacharopoulou, Minister of State for Development, Francophonie and International Partnerships, attached to the Minister for Europe and Foreign Affairs. This session consisted of two parts.


Chrysoula Zacharopoulou, Minister of State for Development, Francophonie and International Partnerships, attached to the Minister for Europe and Foreign Affairs.

1st Part : Financing global policies: But why?

What are  the purposes of public international development finance?  

The goals of public financial flows to developing countries has changed significantly over the last thirty years. In this respect, the international community is faced with two trade-offs: on the one hand, between the traditional goals of income convergence and poverty reduction, and on the other hand, between this same goal of convergence and the preservation of global public goods, the list of which is growing. With regard to the climate in particular, what should be the respective weight of mitigation, adaptation and compensation objectives? The choices are all the more important as they condition the modalities and destination of financial flows.


Presentation of the paper Financing Global Policies: But Why?

Sylviane Guillaumont Jeanneney, Special Advisor to Ferdi

Jean-Michel Severino, Chairman of the Supervisory Board of I&P


Nialé Kaba, Minister of Planning and Development of Côte d'Ivoire

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

Bertrand Walckenaer, Deputy CEO of Agence française de développement (AFD)

María del Pilar Garrido Gonzalo, Director of the Development Co-operation Directorate (DCD) at the OECD

Pierre Jacquet, Former President of the Global Development Network (GDN)

2nd Part : Financing global policies: But for whom?

How to identify the vulnerable countries to which new development finance should be allocated: the issue of eligibility for and inter-country allocation of concessional funding

Entering into a "financial compact with vulnerable countries" implies identifying these countries, for which there is no recognised category. The only category officially recognised by the UN is the LDCs, identified according to precise criteria that make them (relatively) poor and vulnerable countries. Next to them and several among them are the SIDS (Small Islands Development States), which are generally vulnerable, but for many not (relatively) poor. The identification of target countries implies weighting the criteria of per capita income and vulnerability. Continuous criteria approach is needed besides or instead a category approach. And the vulnerability to be considered should be structural and multidimensional in the spirit of the index being finalised by the UN: (physical) vulnerability to climate change is an essential but not exclusive dimension.

Presentation of the paper Financing Global Policies: But for whom?

Patrick Guillaumont, President of Ferdi


Désiré Vencatachellum, Director, Resource Mobilization and External Finance, AfDB

or Gauthier Bourlard, Director and Special Advisor to the President of the AfDB

Jean-Louis Arcand, Président du Global Development Network

Viwanou Gnassounou, Former ACP Under-Secretary General


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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