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Some thoughts on Finance Architecture

by Benito Müller

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(a) Retained, Fragmented, Decentralized (b) Devolved, Consolidated, Decentralized (c) Retained, Consolidated, Centralized

International Consolidated Fund

Country A

Country B

Country C

InternationalSources

Recipient Country D

National (Consolidated) Fund

FundedActivities

Fragmented v. Consolidated

Centralized v. Decentralized

Devolved v. Retained

International Consolidated Fund

Country A

Country B

Country C

InternationalSources

Recipient Country D

FundedActivities

Recipient Country D

Country A

FundedActivities

InternationalSources

IFIs/IGOs/Funds

Country B

Country C

Three Fundamental Dichotomies

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• National Planning Entity (e.g. NAPA team)

• National Implementing Entity (Adaptation Fund)

• National Funding Entity

The Trend Towards Devolution

International Consolidated Fund

Country A

Country B

Country C

InternationalSources

Recipient Country D

National (Consolidated) Fund

FundedActivities

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Why? Efficiency &Effectiveness

The Need For Devolution