This report looks at recent developments in aid financing of international public goods (IPGs) and provides a background to the strategic issues in development assistance. It argues that it is difficult to discuss aid for IPGs without reference to all the other debates on aid such as those on scaling up of aid versus absorptive capacity, aid effectiveness; and debates on approaches to address harmonisation, alignment and ownership of donor–recipient aid relationships.

• The report also argues that debates on financing IPGs are relevant but a series of questions will need to be addressed:
• What is the rationale for providing the IPG?
• Who should provide an IPG?
• How does provision of an IPG sit with the Paris declaration on harmonisation, alignment and ownership?