Absorbing innovative financial flows: Looking at Asia

This paper explores the scope of IDF to compensate for declining ODA and/or to enhance the efficiency of ODA. It shows that IDF has not helped much to increase the volume of aid. With regard to efficiency, the role of IDF related mechanisms remains controversial. In view of the above, it may be more productive to focus on other resources available to Asia. The paper points to two such resources, namely the surpluses accumulated in the form of reserves, SWFs, etc. and the migrant remittances. Efficient utilization of these two sources can vastly change the development finance landscape in Asia.