Proposed sources of innovative International financing

The standard way in which States undertake international financial cooperation is through the Government’s proposal and the legislature’s approval of an allocation of funds for a particular purpose. The initiative may begin with one Government or as an initiative jointly agreed by several or all Governments acting together. While the Government commits itself to making the outlay, the actual outlay is contingent on legislative approval. This means that whether the outlay in question is a recurrent appropriation for a bilateral or multilateral initiative or a one-time outlay aimed at increasing the capital of an international financial institution, the process of ensuring national approval and disbursement introduces a measure of uncertainty, possibly entailing either a delay or the approval of an amount of funding different from that committed.

Related Subject(s): International Trade and Finance