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World economic and social survey 2012: in search of new development finance

The World Economic and Social Survey (WESS) 2012 focuses on innovative ways to finance sustainable development. It notes that while the need for aid remains high, many donors have cut back on development assistance due to difficult financial times. The report highlights that the potential for innovative development finance is particularly high in the area of fighting climate change. Innovative development finance mechanisms have already raised about US$1 billion for climate change, although disbursements have been relatively limited. However, increasing finance has given rise to a proliferation of separate climate funds with limited coordination among them. The WESS states that it is important to avoid further fragmentation and, as in the case of health, a more effective approach would be to consolidate disbursement mechanisms. The survey concludes that the international agreement to establish the Green Climate Fund could serve as the starting point for such a consolidation