Global Public Finance and Funding the Millennium Development Goals

Summary The members of the United Nations have agreed to the Millennium Development Goals, but there remains a major challenge of funding these ambitions. This paper examines alternative sources of development funding: global taxes, new Special Drawing Rights, the International Finance Facility, a global lottery, and increased private transfers. The paper suggests that “global public finance” can contribute to the public debate about these alternatives. It indicates how progress can be made without unanimity, that subsidiarity can increase national acceptance, and draws attention to the implications of the changing world distribution of income.Based on the Fourth Jelle Zijlstra Lecture given at the Free University, Amsterdam, on 12 December 2005. I am most grateful to Antony Burgmans, the discussant, and other members of the audience, for their comments.