New Sources of Development Finance: Funding the Millennium Development Goals

Mobilizing additional finance to meet the challenges of the Millennium Development Goals (MDGs) is an urgent priority. Developing countries are mobilizing resources themselves to meet the MDG targets by 2015, but they will fall short without additional external flows. Increased private and public money is needed in order for the world's poorest countries to invest in the basic services and infrastructure necessary for human development, and to improve livelihoods and employment for poor people.As a result of the Five Year Review of the World Summit for Social Development, the UN General Assembly in September 2000 adopted a resolution calling for 'a rigorous analysis of the advantages, disadvantages and other implications of proposals for developing new and innovative sources of funding, both public and private, for dedication to social development and poverty eradication programmes'. The UN Department of Economic and Social Affairs in turn requested the World Institute for Development Economics Research (UNU-WIDER) in Helsinki to undertake a project on 'Innovative Sources for Development Finance'. This Policy Brief summarizes the key findings of the study carried out by UNUWIDER. Anthony B. Atkinson, Project Director and Warden of Nuffield College, University of Oxford, has written the Policy Brief drawing on the papers prepared for the project. He acknowledges the substantial contribution made by the project authors, but takes full responsibility for the opinions expressed

Income Tax and Top Incomes over the Twentieth Century

The first section of the paper gives a stylised account of the development of the UK income tax structure over the past 200 years, and refers to recent changes in other OECD countries. The second section turns to the distribution of income and summarises the evidence about the top of the income distribution that can be derived from the income tax data. The main results relate to the UK, but comparisons are made with similar evidence for Canada, France, the Netherlands, and the US. The third part of the paper considers the explanation of the observed changes in the distribution and the impact of progressive income taxation. How far are changes in income shares a reflection of the re-arrangement of income? How far are they associated with changes in the composition of top incomes? Conclusions about distributional incidence have to be based on modelling the determination of the personal income distribution, but such modelling is not typically treated in public finance textbooks. The fourth section of the paper considers how the analysis of distributional incidence can be developed, paying specific attention to the explanation of the upper tail of the distribution. : Income, Taxation, Income Distribution, Tax Incidence

Emergence of charge order in a staggered loop-current phase of cuprate high-temperature superconductors

We study the emergence of charge ordered phases within a pi-loop current (piLC) model for the pseudogap based on a three-band model for underdoped cuprate superconductors. Loop currents and charge ordering are driven by distinct components of the short-range Coulomb interactions: loop currents result from the repulsion between nearest-neighbor copper and oxygen orbitals, while charge order results from repulsion between neighboring oxygen orbitals. We find that the leading piLC phase has an antiferromagnetic pattern similar to previously discovered staggered flux phases, and that it emerges abruptly at hole dopings p below the van Hove filling. Subsequent charge ordering tendencies in the piLC phase reveal that diagonal d-charge density waves (dCDW) are suppressed by the loop currents while axial order competes more weakly. In some cases we find a wide temperature range below the loop-current transition, over which the susceptibility towards an axial dCDW is large. In these cases, short-range axial charge order may be induced by doping-related disorder. A unique feature of the coexisting dCDW and piLC phases is the emergence of an incommensurate modulation of the loop currents. If the dCDW is biaxial (checkerboard) then the resulting incommensurate current pattern breaks all mirror and time-reversal symmetries, thereby allowing for a polar Kerr effect