The anticipated increased role for the private sector in development is welcome, but, as this paper shows, international public finance will still have a vital and unique role to play in the future.

Building on an analysis of the unique qualities not just of aid but of international public finance more broadly, and assessing the new context and challenges facing the world, this paper makes a compelling case for taking some important “next steps” in international financial cooperation. Rather than focusing just on aid, the authors argue that the concept of international public finance for sustainable development is more coherent with today’s world. They call for establishing such financing on a permanent basis, and allocating it according to a much broader set of criteria rather than concentrating simply on income per capita. And they discuss the governance evolutions required in multilateralism to make such an ambitious project work for people and planet.