Between them, these new revenue flows dwarf aid.

Some progress in streamlining conditionality of aid flows is emerging.

Aid flows should be predictable and aligned with countries' needs.

Least developed countries are especially in need of larger flows of aid.

Developments and trends in international aid policies and flows will be closely monitored.

After a prolonged decline in aid flows during the 1990s, aid levels have begun to increase again, as figure 1 demonstrates.

This therefore calls for careful consideration and implementation of measures for streamlining the inflow of aid flows and avoiding harmful surges of flows.

The entire aid flows to the 60 countries of the bottom billion last year were 34 billion.

Increased aid flows from bilateral development partners and multilateral financial institutions are essential for enhancing resilience capacities.

There is also a need to secure more stable, predictable and flexible aid flows for the poorest countries.

Africa's development partners would need to meet their commitments to significantly increase aid flows in a predictable and coherent manner.

Indicators, including those on the advancement of women, for monitoring progress on aid flows and their impact were also proposed.

The Millennium Development Goals imply larger aid flows for sub Saharan countries if they are to achieve the goals by 2015.

Rising average incomes should lead to increases in domestic savings, which should help to gradually reduce dependence on external concessionary aid flows.

Also, as aid is scaled up, it is especially important to be aware of the complex relationships between aid flows, the macroeconomic framework, national budgets and the spending needed to meet the Millennium Development Goals.

That is equivalent to about five times aid flows and budget savings from debt service relief provided by high income countries in 2002.

Domestic resource mobilization, remittances from expatriate workers, private debt and equity flows, and philanthropic contributions exceed official international aid by a wide margin. Private flows are no longer the tail, but the dog that wags the development agenda.

Speakers welcomed the progress made earlier this year at Paris on the effectiveness of aid and increased flows of donor funding as budget support.

The combination of tighter credit conditions in the advanced economies and dimmer economic prospects in low income countries is hitting investment flows. And workers remittances, which now eclipse aid as the biggest financial flows to low income countries, are also falling.

I thank the G 8 leaders who, in their Gleneagles Summit, agreed to increase annual aid flows and cancel the debts of least developed countries.

As the current level of aid was insufficient to achieve the Goals, innovative sources of financing that provided additional, stable and predictable flows must be found.

The agreement is contained in the so called Paris Agenda, which defines principles of ownership, alignment, and harmonization. It calls for the improved predictability of aid flows, with budget support and program based aid as the preferred means of delivering support.

Secondly, the international community should translate promises into concrete actions, especially with regard to the promised significant increases in development assistance flows and the harmonization and simplification of aid procedures.

To ensure a country's firm footing on the sustainable path of growth and prosperity, a strong economic foundation is equally as essential as short term flows of aid and debt cancellation.

Such new funding needs to be non debt creating, additional to existing development aid flows and channelled directly to recipient countries and, where appropriate, should utilize public private partnerships seeded by donor funding.

Capital flows

We need to radically open up development so knowledge flows in multiple directions, inspiring practitioners, so aid becomes transparent, accountable and effective, so governments open up and citizens are engaged and empowered with reformers in government.

Likewise, the issue of swapping one financial obligation for another under the HIPC Initiative raises the question of additionality of aid flows, as debt relief is included in the donor accounting of official development assistance (ODA).

We welcome the recent G 8 Africa Action Plan, which promises debt relief, increased aid flows, a commitment to improving global market access for African exports, and an agreement to provide medical assistance to the continent.

Band Aid, Live Aid.

However, these flows tend to be more volatile than official flows and pro cyclical.

Our aid is effective aid.

Although the call for financial liberalization was heeded across the developing world in the 1990s, the majority of countries, and particularly those in Africa, attracted little private flows, and certainly not enough to offset declining aid (UNCTAD, 2000).

Thus, we suggest that NEPAD make a strong case for aid flows, both compensatory and short term adjustment oriented, to African countries which are seriously affected by the reduced value of their traditional preferences as multilateral liberalization proceeds.

Why Capital Flows Uphill

This river flows rapidly.

Investment and private flows

Flows to Chile doubled.

financial flows for development.

Capital flows and remittances

FDI flows in services between developing countries are growing faster than flows between developed and developing countries.

Disaster aid for education in such circumstances almost always flows far too slowly, because there is no central pool of funds available to be distributed when a crisis erupts. And for the children of Nepal, the consequences are doubly devastating.

As I said here a year ago, the IMF has long been an advocate of increases in aid flows and debt relief, and we are working intensively on how to best give effect to the G 8 debt forgiveness proposal.

The European Union has committed itself and its member states to increase aid flows to 0.56 of GDP by 2010 and 0.7 by 2015 with a big focus on Africa. The combined aid commitments of OECD Development Assistance Committee member countries would mean a doubling of official development assistance to Africa between 2004 and 2010 that is, if they are honored.

The European Union has committed itself and its member states to increase aid flows to 0.56 of GDP by 2010 and 0.7 by 2015 with a big focus on Africa. The combined aid commitments of OECD Development Assistance Committee member countries would mean a doubling of official development assistance to Africa between 2004 and 2010 that is, if they are honored.