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What is the rationale for the coexistence of Global Financial Institutions (like the World Bank) and Regional Financial Institutions (like the Regional Development Banks)? This paper conceptualizes the differences between these entities and develops a framework for assessing their comparative strengths and weaknesses in delivering different types of development assistance. It argues that in general there is scope for shifting some of the functions currently performed by global institutions to regional ones, leaving the former with increased capacity for global functions that only they can perform.


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