FINANCE & INVESTMENT081

open markets, investments, and new types ofassistance.In a world Beyond Aid, new investment vehicles suchas IFC's Asset Management Corporation would createnew channels for intermediating capital throughprivate investment.In a world Beyond Aid, new financial instrumentswould insure smallholder farmers against drought, orcountries against hurricanes, would create localcurrency bond markets and leverage new equityinvestments, and develop new local commodityexchanges, or hedging instruments for developingcountries.In a world Beyond Aid, support for innovation andscientific breakthroughs would develop drought-resistant, more nutritious, and better yielding crops;create efficient non-carbon energy sources; and findnew life-saving vaccines. Developed countries need to recognise their self-interest in helping developing countries get on apathway to sustainable growth. They need to honourtheir commitments. But we also need to recognise thatthe climate for aid will grow colder as donor countriesstruggle with debt.Taxpayers have a right to know that the World Bank and other development institutions are responsiblestakeholders, too. We need to do a better jobdemonstrating the effectiveness of aid, showing value for money, and pointing to results; leveraging aidmore effectively through new instruments; andexpanding the contributors by involving morestakeholders through more innovative approaches. nThe above remarks are extracted from Robert B. Zoellick'sspeech "Beyond Aid" delivered at George WashingtonUniversity on 14 September 2011. For further informationvisit: www.worldbank.org082FINANCE & INVESTMENTBelow: Developedcountries need torecognise their self-interest in helping developingcountries get on a pathway to sustainable growthPhoto: © World BankPhoto below: shutterstock.com